Management Accounting's Effect on Organizational Performance: The Dynamics of Strategic Decision Making

In an increasingly complex business environment, organizations are under growing pressure to enhance performance through data-driven strategies and agile decision-making. Management accounting has emerged as a pivotal function that extends beyond traditional financial control to support strategic execution and organizational alignment. This study investigates the effect of management accounting practices on organizational performance, with strategic decision-making analyzed as a mediating variable—a relationship that remains underexplored in existing literature. While previous studies have examined the individual effects of management accounting tools and decision-making quality, few have empirically tested their dynamic interaction within a unified model. The study adopts a descriptive-correlational design to address this gap, surveying 300 finance professionals and executives from medium to large enterprises in Metro Cebu, Philippines. Data were gathered using a structured questionnaire and analyzed through SPSS version 25 and Hayes’ PROCESS macro (Model 4) to assess both direct and indirect effects among variables. Results indicate that management accounting significantly predicts organizational performance (β = 0.685, p < .001), and strategic decision-making partially mediates this relationship (indirect effect = 0.384, p < .001). The study further identifies performance measurement as the most influential accounting tool in guiding strategic outcomes. These findings offer empirical validation for the theoretical link between accounting practices and decision-driven performance enhancement. Moreover, sectoral differences in performance outcomes underscore the need for industry-specific customization of management accounting systems. The results carry practical value for organizations aiming to integrate accounting data more effectively into strategic planning and execution. This research advances current knowledge by positioning management accounting as a strategic enabler, not merely a financial support function, and lays the groundwork for future studies involving digital transformation and behavioral dimensions of decision-making.