Abstract:
The study purposely examined how strategic management accounting practices affect the financial performance of small businesses within the Ho municipality, Ghana. The study specifically investigated the effects of value chain costing, quality cost analysis, strategic costing and activity-based costing on the small businesses’ financial performance. The theories underpinning this study included the resource-based view theory and upper echelons theory. The study relied on the quantitative approach, explanatory design while structured questionnaires were used to obtain primary data. The study processed valid data set of 107 using the IBM SPSS Statistics (v. 26) and SmartPLS. The PLS-SEM analytical tool was used to analysis the data and it was found that all the four SMA practices had significant positive effects on the financial performance of the small businesses in the Ho municipality. It was concluded that SMA practices play crucial role in improving these businesses’ financial performance. It was recommended that owner/managers should adopt these strategic management accounting practices in identifying, analysing and managing their costs in order to attain higher financial performance.
