Management Accounting Techniques and Non-Financial Organizational Performance: Evidence from Nepalese Banks

Abstract

The aim of the present study is to examine the degree of adoption of management accounting techniques (MAT) and the effect of such practices on the non-financial organizations’ performance (NFOP) in the banking industry of Nepal. This study makes use of survey data collected from 300 participants comprising branch managers, accounting officers, and senior employees of commercial and development banks in Kathmandu Valley. In this regard, descriptive statistics and structural equation modeling (SEM) have been used to test the association between MAT and NFOP. As revealed in the findings, while conventional MAT such as benchmarking, management control systems, and operations budgeting are widely practiced, the adoption of modern MAT, including customer profitability analysis, risk-adjusted performance measures, and decision-making tools, is relatively low because of resource limitations and regulations. The findings of SEM have shown that approximately 65 percent of the variation in non-financial performance such as customer satisfaction, employee productivity, service quality, innovation, and many more can be attributed to the adoption of MAT. The research suggests that by promoting the use of advanced MATs through management commitment, regulatory flexibility, and professional development, Nepalese banks can improve their long-term competitiveness, innovation, and sustainability