Levers of Control on Firm Performance in an Emerging Country: Do Management Accounting Practices Matter?

This study aims to examine the influence of the four levers of control systems (LOC) on firm performance. Further, the study analyzes how the choice of management accounting practice (MAP) interacts with the relationships between LOC and firm performance. Using a survey research design, data were collected from 158 firms operating in various economic sectors in Yemen. A structural equation model (SEM) is used for data analysis utilizing AMOS software. The results indicate that LOC is significantly and positively related to firms’ financial and non-financial performance (FNFP). Additionally, MAP moderates the relationship between LOC and firm performance. The impact of LOC on FNFP is more pronounced and greater in firms that use advanced MAP. This study enhances the understanding of how MAP interacts with other organizational activities, such as the control system in improving firm performance.