The Mediating Effect of Management Accounting System on the Relationship Between Data-Driven Innovation and Firm Performance: A Case of Egypt

Document Type : Original Article

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Faculty of Commerce, Cairo University, Giza, Egypt

Abstract

This research aims to examine the mediating effect of management accounting system (MAS), through its traditional and strategic techniques, on the relationship between data-driven innovations (DDI) and firm financial and non-financial performance. The primary impetus for this study is the limited accounting literature that integrates DDI with both traditional and strategic management accounting techniques. Three main hypotheses were considered for analysis. First, there is an insignificant relationship between DDI and firm performance. Second, there is an insignificant relationship between MAS and firm performance. Third MAS exhibits an insignificant mediating effect on the relationship between DDI and firm performance. A survey was conducted in the first half of 2023 on a sample of various-sized Egyptian business firms operating across different industry sectors. Path analysis was used to test the research’s three basic hypotheses. In addition, one way Analysis of Variance (ANOVA) test was used to explore the effect of two contingency variables; firm size and type of activity, on firm performance. Statistical results indicated a strong impact of DDI on firm performance, as well as a notable correlation between MAS and firm performance, alongside the mediating effect of MAS on the relationship between DDI and firm performance. Moreover, despite the evident effect of firm size on firm performance, no such effect is observed for the type of activity on the firm performance.

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