Management accounting techniques and the creation & sustenance of competitive advantage among Zimbabwe’s petroleum companies.

Abstract

This study investigates the extent to which the implementation of management accounting techniques contributes to the creation and sustenance of competitive advantage among petroleum companies in Zimbabwe. The research aims to identify the management accounting practices employed within the sector, assess whether these practices lead to competitive advantage, and evaluate their overall effect on competitiveness. This investigation is particularly significant within Zimbabwe's volatile business environment, which is characterised by political instability, hyperinflation, and regulatory challenges. The research adopts a positivist paradigm, employing descriptive and causal research designs. A cross-sectional design was utilised to collect data from a census of petroleum companies in Zimbabwe, sourced from the Zimbabwe Energy Regulatory Authority (ZERA). Data collection was conducted through a structured survey, with the subsequent analysis performed using multiple regression analysis, hierarchical regression analysis and Pearson's correlation to assess the relationship between management accounting practices and competitive advantage. The findings reveal that budgetary control, performance evaluation (both financial and non-financial), and decision support systems are the most frequently utilised management accounting practices within the sector. The study highlights that companies demonstrating higher engagement with these practices exhibit improved relative competitiveness and non-financial performance. Long-term decision support systems emerged as the most influential factor in enhancing competitiveness. The research makes significant theoretical contributions by contextualising the impact of management accounting within Zimbabwe's petroleum industry. A key outcome of the study is the development of the Competitive Advantage through Management Accounting Framework (CAMAF), which illustrates how implementing management accounting practices can strengthen competitive advantage. The study recommends that policymakers and industry stakeholders establish supportive frameworks to promote robust management accounting practices. It highlights the need for petroleum companies in Zimbabwe to integrate management accounting practices and invest in long-term decision-support systems to navigate economic volatility and sustain competitive advantage. It also emphasises prioritising non-financial performance metrics, such as operational efficiency and customer satisfaction. Additionally, the study calls for clear regulations that promote transparency, efficiency, and public-private collaboration.