The Use of Accounting Information in Strategic Decision-Making for Retail Businesses
Keywords:
Accounting information, Strategic decision-making, Retail business, Cost management, Accounting information systemsAbstract
This study aims to analyze the role of accounting information in strategic decision-making for retail businesses, considering the factors influencing its use and the impact on business performance. A mixed-methods research approach was employed, collecting data from 286 retail businesses via questionnaires and conducting in-depth interviews with 10-15 retail executives.
The findings indicate that cost accounting is the most frequently used type of accounting information (85.3%), followed by financial accounting (78.5%) and managerial accounting (72.1%). The most influential factors affecting accounting information usage are accounting information systems (r = 0.82) and business size (r = 0.74). Retail businesses that extensively utilize accounting data can reduce costs by 22.5% and increase profits by 18.7%, whereas those with minimal accounting usage achieve only a 5.6% cost reduction and 3.9% profit increase.
This study suggests that retail businesses should adopt modern accounting information systems and provide training to executives and employees on effectively utilizing accounting data. Future research should explore the impact of emerging accounting technologies, such as AI and Big Data Analytics, on retail business management.
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