Shahid Beheshti University Journal of Business Management Perspective 2251-6050 24 62 2025 06 22 Organizational External Environment and Its Impact on Strategic Management Accounting Practices: An Empirical Study Organizational External Environment and Its Impact on Strategic Management Accounting Practices: An Empirical Study 125 157 106387 10.48308/jbmp.2025.239755.1670 FA Mohammad Hossein Safarzadeh Safarzadeh Accounting Departement, management and Accounting Faculty, Shahid beheshti university, tehran, iran 0000-0003-0767-5193 Seyyed Abbas HOOSHMAND KASHANI Accounting Department, management and accounting Faculty, Shahid Beheshti university, tehran, iran 0000-0003-2124-6950 Journal Article 2025 05 02 Objectives: Iran’s economic growth lags behind that of other emerging and developed economies, and forecasts suggest a continuing decline. Publicly listed companies represent a substantial component of Iran’s economic structure; thus, improving their performance amid the current turbulent political and economic conditions can contribute significantly to national development and sustainable economic growth. The strategic application of management accounting techniques has a pronounced effect on organizational performance, and the adoption of such methods may accelerate Iran’s economic advancement. Accordingly, this study investigates the effect of external environmental uncertainty on the implementation of strategic management accounting (SMA) practices among companies listed on the Tehran Stock Exchange and the Iranian Over-the-Counter (OTC) Market, as well as their subsidiaries. Methods: From a philosophical perspective, the research adopts a positivist approach; its logic of reasoning is deductive, its purpose is applied, and its implementation process is quantitative. The research design is longitudinal–retrospective, with data collected through a questionnaire-based survey and analyzed using a correlational method. A standardized questionnaire was employed for data collection. Prior to final distribution, five managerial accountants in upper and middle management positions participated in a pilot test to refine the instrument’s clarity and practical relevance. Following the pre-test feedback, appropriate revisions were made, and the questionnaire was then administered to the target firms. Given that the population size and variance were unknown, the final sample size was determined to be 170 respondents. Findings: Data analysis revealed that several external environmental factors significantly influence the adoption of SMA techniques. Specifically, high environmental uncertainty (p = 0.001, T = -7.043), market volatility (p = 0.001, T = -4.193), informational ambiguity (p = 0.001, T = -7.939), decision-outcome uncertainty (p = 0.001, T = -4.378), competitive intensity (p = 0.001, T = -6.445), and market dominance by competitors (p = 0.001, T = -8.606) were found to have a significant and positive impact on the use of SMA. In contrast, environmental unpredictability (p = 0.213, T = -1.262), lack of environmental information (p = 0.446, T = -0.764), and stressful competition (p = 0.058, T = -1.905) showed no statistically significant relationship with SMA adoption. Conclusion: This study examined the effects of external environmental conditions and competitive intensity on the implementation of strategic management accounting practices within Iranian publicly listed firms. The findings confirm that certain external forces—particularly uncertainty, volatility, ambiguity, and market dominance—positively influence SMA adoption. Conversely, pure environmental unpredictability and excessive competitive pressure were not significant predictors. These outcomes highlight the necessity for firms to align their management accounting systems with environmental dynamics and competitive structures to strengthen strategic decision-making, enhance organizational performance, and maximize shareholder value in volatile markets. Objectives: Iran’s economic growth lags behind that of other emerging and developed economies, and forecasts suggest a continuing decline. Publicly listed companies represent a substantial component of Iran’s economic structure; thus, improving their performance amid the current turbulent political and economic conditions can contribute significantly to national development and sustainable economic growth. The strategic application of management accounting techniques has a pronounced effect on organizational performance, and the adoption of such methods may accelerate Iran’s economic advancement. Accordingly, this study investigates the effect of external environmental uncertainty on the implementation of strategic management accounting (SMA) practices among companies listed on the Tehran Stock Exchange and the Iranian Over-the-Counter (OTC) Market, as well as their subsidiaries. Methods: From a philosophical perspective, the research adopts a positivist approach; its logic of reasoning is deductive, its purpose is applied, and its implementation process is quantitative. The research design is longitudinal–retrospective, with data collected through a questionnaire-based survey and analyzed using a correlational method. A standardized questionnaire was employed for data collection. Prior to final distribution, five managerial accountants in upper and middle management positions participated in a pilot test to refine the instrument’s clarity and practical relevance. Following the pre-test feedback, appropriate revisions were made, and the questionnaire was then administered to the target firms. Given that the population size and variance were unknown, the final sample size was determined to be 170 respondents. Findings: Data analysis revealed that several external environmental factors significantly influence the adoption of SMA techniques. Specifically, high environmental uncertainty (p = 0.001, T = -7.043), market volatility (p = 0.001, T = -4.193), informational ambiguity (p = 0.001, T = -7.939), decision-outcome uncertainty (p = 0.001, T = -4.378), competitive intensity (p = 0.001, T = -6.445), and market dominance by competitors (p = 0.001, T = -8.606) were found to have a significant and positive impact on the use of SMA. In contrast, environmental unpredictability (p = 0.213, T = -1.262), lack of environmental information (p = 0.446, T = -0.764), and stressful competition (p = 0.058, T = -1.905) showed no statistically significant relationship with SMA adoption. Conclusion: This study examined the effects of external environmental conditions and competitive intensity on the implementation of strategic management accounting practices within Iranian publicly listed firms. The findings confirm that certain external forces—particularly uncertainty, volatility, ambiguity, and market dominance—positively influence SMA adoption. Conversely, pure environmental unpredictability and excessive competitive pressure were not significant predictors. These outcomes highlight the necessity for firms to align their management accounting systems with environmental dynamics and competitive structures to strengthen strategic decision-making, enhance organizational performance, and maximize shareholder value in volatile markets.

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