Does environmental uncertainty influence the application of strategic management accounting? An investigation of listed manufacturing firms in Nigeria

Aim/purpose – This research investigates the influence of environmental uncertainty on applying strategic management accounting among listed manufacturing companies in Nigeria. Design/methodology/approach – The study population comprises 76 manufacturing firms listed on the Nigerian Stock Exchange as of December 2023, with a sample size of 60 firms derived using the Green (1991) formula. The data collection method involved administering a structured questionnaire. The independent variables include competition intensity, market turbulence, and environmental uncertainty, while the dependent vari- able is the application of strategic management accounting. The factor loading test con- firmed the construct’s validity and reliability, as indicated by Cronbach’s alpha test and Bartlett’s test of sphericity, which demonstrated internal consistency. Additionally, the Kaiser–Meyer–Olkin test was used to verify the sampling adequacy. Pearson Correlation and variance inflation factor tests confirmed the absence of multi-collinearity, and multi- ple regression analysis was employed to estimate the model. Findings – The article reveal that competition intensity, market turbulence, and environmen- tal uncertainty significantly influence strategic management accounting applications. Research implications and limitations – These findings have theoretical, managerial, and practical implications for manufacturing firms. They stress the importance of strate- gic management accounting in times of environmental uncertainty. The study recom- mends that firms adopt strategic management accounting in response to increased com- petitive intensity, market turbulence, and environmental uncertainty. The study’s limita- tions are sample size, industry, scope, and variables. Originality/value/contributions – It contributes to the existing literature, offers valuable insights to academia, industry experts, and practitioners, and sheds light on and bridges the knowledge gap between environmental uncertainty and the application of strategic man- agement accounting. Keywords: Competitive intensity, market turbulence, environmental uncertainty, and strategic management accounting. JEL Classification: M40, M41, M31 L60.