Role of Management Accounting Information in Strategic Decision-Making in Nigerian Conglomerate Firms

Increasing competitive pressure and macroeconomic volatility have intensified the need for Nigerian conglomerate firms to leverage management accounting information for strategic positioning, yet empirical studies examining this relationship within the Nigerian conglomerate context remain underrepresented in the literature. This study investigated the role of management accounting information (MAI) in strategic decision-making among selected conglomerate firms in Nigeria. The study was anchored on contingency theory, which posits that the relevance and utility of management accounting systems are contingent on organizational structure, size, and environmental uncertainty. A survey research design was adopted, with a population of 275 chief financial officers, management accountants, and strategy directors from seven major Nigerian conglomerates. A sample of 162 respondents was determined via Krejcie and Morgan's formula and selected through stratified random sampling. A validated questionnaire served as the data collection instrument, and data were analyzed using structural equation modeling. Results indicated that the quality, timeliness, and relevance of management accounting information significantly predicted the effectiveness of strategic decisions, including market entry, divestment, and capital investment choices. The study concluded that sophisticated MAI systems provide conglomerates with a strategic advantage in dynamic market environments. It was recommended that conglomerate boards should invest in advanced management accounting platforms, including balanced scorecards and activity-based costing systems, to enhance strategic intelligence.

Keywords: Management accounting information, strategic decision-making, conglomerate firms, contingency theory, balanced scorecard