Influence of Management Accounting in Creating Sustainable Competitive Advantage in Commercial Banks

Book excerpt: Current management accounting techniques have not been widely accepted as a means to develop a competitive advantage. The information obtained from the literature reviewed and the results from an empirical study that involved a sample of forty respondents from Equity Bank found that the modern management accounting practices provide very important skills and techniques in building competitiveness. The practices play an important role in the planning, developing, implementing and evaluating strategic competitive policies that result in a competitive advantage. The study outlines the importance of management accounting practices in providing strategies that lead to the creation of a competitive advantage in an organisation. However, the conclusions are drawn on a conceptual level and a future empirical investigation is needed to ubstantiate these claims further. The study also sets a foundation for more focused research into the importance of modern management accounting practices in developing a competitive advantage especially in the banking sector.