Upper echelon theory and the adoption level of management accounting: implications for small and medium enterprises in Vietnam

Abstract

This study elucidates the role of Upper Echelon Theory in explaining the extent of management accounting adoption within enterprises. Based on a literature review and theoretical analysis, the results indicate that the application of management accounting tools depends not only on corporate resources or information infrastructure but also significantly influenced by the cognitive lenses of top managers. From this perspective, the article proposes solutions to promote management accounting adoption in Vietnamese Small and Medium Enterprises (SMEs), where the leader's personal imprint dictates nearly every organizational move. Proposed solutions include enhancing managerial awareness, maintaining flexibility in accounting personnel organization and refining the institutional support framework from state regulatory agencies.