Journal of Accounting and Investment Vol. 24 No. 2, May 2023 Article Type: Research Paper Determinants of strategic management accounting implementation in Higher Education Institutions (HEIs) in Indonesia Evi Marlina*, Adriyanti Agustina Putri, and Linda Hetri Suriyanti Abstract Research aims: This study aims to examine determinants of strategic management accounting implementation, including market orientation, top management characteristics, strategy, and information technology. Design/Methodology/Approach: This research was conducted in higher education institutions (HEIs) in some areas, covering Sumatra, Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, and Papua. The research respondents were 368 HEIs leaders. Data were obtained by distributing questionnaires, and the hypotheses were tested using the partial least squares method. Research findings: The results revealed that market orientation, top management characteristics, HEIs strategy, and information technology positively affected strategic management accounting implementation. Theoretical contribution/ Originality: This research contributes to determining contingency variables in implementing strategic management accounting in HEIs. Keywords: Strategic Management Accounting; Market Orientation; Top Management Characteristics; Heis Strategy; Information Technology Introduction The sustainability of higher education institutions (HEIs), especially private ones, is one of the government's concerns today. In 2019, there were closures of 130 private HEIs throughout Indonesia (Nasir, 2019). One of the factors that caused the closure was the difficulty of getting students (Marlina & Tjahjadi, 2021). In addition, regulatory changes related to accreditation were previously carried out by the Higher Education Accreditation Agency (BAN-PT) to become an Independent Accreditation Institution (LAMEMBA) which requires considerable funding, undeniably adding to the financial burden of HEIs. Consequently, the organization's financial management system in the form of incoming and outgoing money budgets (traditional budgeting) is no longer relevant. HEIs need a more comprehensive accounting information system model, i.e., strategic management accounting (SMA). SMA is an accounting information technique that can monitor the organization in achieving the organization's vision and mission (Hutaibat, 2019). SMA is also considered relevant to environmental changes since the information presented is more comprehensive so that higher education management is more precise in making decisions (Marlina, et al. 2020). AFFILIATION: Department of Accounting, Faculty of Economics and Business, Universitas Muhammadiyah Riau, Riau, Indonesia *CORRESPONDENCE: evimarlina@umri.ac.id DOI: 10.18196/jai.v24i2.16562 CITATION: Marlina, E., Putri, A. A., & Suriyanti, L. H. (2023). Determinants of strategic management accounting implementation in Higher Education Institutions (HEIs) in Indonesia. Journal of Accounting and Investment, 24(2), 306-322. ARTICLE HISTORY Received: 18 Oct 2022 Revised: 17 Nov 2022 30 Nov 2022 Accepted: 17 Dec 2022 This work is licensed under a Creative Commons Attribution-Non-Commercial- No Derivatives 4.0 International License JAI Website: https://scholar.google.co.id/citations?user=bbAX_jQAAAAJ&hl=en https://scholar.google.co.id/citations?user=miF6UAQAAAAJ&hl=en https://scholar.google.co.id/citations?user=wKGZCLwAAAAJ&hl=en https://feb.umri.ac.id/program-pendidikan/s1-akuntansi/ https://feb.umri.ac.id/program-pendidikan/s1-akuntansi/ https://feb.umri.ac.id/program-pendidikan/s1-akuntansi/ https://feb.umri.ac.id/program-pendidikan/s1-akuntansi/ mailto:evimarlina@umri.ac.id http://dx.doi.org/10.18196/jai.v24i2.16562 https://crossmark.crossref.org/dialog/?doi=10.18196/jai.v24i2.16562&domain=pdf https://journal.umy.ac.id/index.php/ai/article/view/16562 Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 307 Nevertheless, the implementation of strategic management accounting is primarily done in business companies, while in HEIs, it has not been carried out much (Hutaibat, 2019). Therefore, this study aims to examine the determinants of the implementation of SMA in HEIs, including market orientation, top management characteristics, HEIs strategy, and information technology. First, market orientation is a principal factor influencing SMA's implementation in HEIs. Market-oriented HEIs provide more comprehensive information about situations and conditions, both internally and externally, so that management can use it in strategic decision-making (Sriyono, 2020). Thus, market orientation forces the HEIs to present information related to external parties, namely market conditions to encourage the implementation of SMA. Furthermore, top management characteristics include education, experience, and creativity (Pavlatos & Kostakis, 2018; Kalkhouran et al., 2015; Hamori & Koyuncu, 2015). Of course, top management as a policy maker in HEIs possesses characteristics of education, experience, and creativity, which will influence every policy to be implemented, one of which is SMA (Pavlatos & Kostakis, 2018). Then, the higher education strategy contained in the form of a strategic plan, which serves as a guide in determining the operational activities of higher education institutions, is undoubtedly a determining factor in the organizational financial management in the form of SMA (Rahimnia & Kargozar, 2016). Moreover, information technology is a medium for obtaining and conveying information more efficiently, encouraging the availability of big data so that SMA implementation becomes more effective and efficient (Azudin & Mansor, 2017). Some of the previous research results examining this topic, among others, were carried out by Yuliansyah et al. (2019), Lay and Jusoh (2017), and Turner et al. (2017), researching the effect of market orientation on SMA implementation in business companies. Furthermore, Pavlatos and Kostakis (2017) and Hamori and Koyuncu (2015) investigated the influence of top management characteristics on the implementation of SMA in the hospitality industry. Kalkhouran et al. (2015), Alamri (2018), and Tuanmat and Smith (2011) studied information technology having a positive effect on SMA implementation. Meanwhile, research on the implementation of SMA in HEIs, among others by Sriyono (2020) and Marlina and Tjahjadi (2021), inspected the influence of higher education strategies on SMA implementation. Furthermore, Hutaibat et al. (2011) scrutinized the effect of SMA implementation on HEI performance. This study, therefore, raises the topic of determinants of strategic management accounting implementation in HEIs, which is also a novelty of this research. Determining factors include market orientation, top management characteristics, HEI strategy, and information technology. Considering these determinants is a crucial factor influencing the implementation of strategic management accounting in HEIs. Based on the high level of HEI competition, a higher education funding management strategy is needed in the form of strategic management accounting. However, more important things must be considered, i.e., the determinants in implementing strategic management accounting in HEIs that differ from business companies. Therefore, this study aims to examine the effect of market orientation, top management Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 308 characteristics, HEI strategy, and information technology on implementing strategic management accounting in HEIs. Further, this research provides a practical contribution to HEIs, especially in implementing strategic management accounting in HEIs, so that it runs effectively and efficiently; it is necessary to consider other factors, such as market orientation, top management characteristics, HEI strategy, and information technology. Furthermore, the theoretical contribution of this research is that the development of contingency theory and upper echelon theory in HEIs as non-profit organizations is still rarely conducted. In this regard, the contingency theory proposes no universally applicable way of managing an organization, depending on the situation and conditions of the organization, while the upper echelon theory puts forwards that the organization reflects management from top management. Literature Review and Hypotheses Development Theoretical Framework This section is a theoretical basis connecting the variables of market orientation, HEI strategy, top management characteristics, information technology, and SMA. This study used contingency and the upper-echelon theories as the theoretical basis for building the research model. According to Otley (2016), contingency theory suggests that no organizational concept or design can be applied universally anywhere or under any circumstances. An organizational concept or design is only suitable for specific contexts or conditions. Thus, the researchers considered contingency theory to identify suitable conditions for designing certain entities in implementing strategic management accounting. In this case, contingency theory links market orientation, HEI strategy, and information technology variables to implementing strategic management accounting. In addition, contingency theory identifies the forms or conditions that must be owned by an organization so that the implementation of strategic management accounting in HEIs runs effectively and efficiently. Furthermore, the upper-echelon theory states that the organization reflects top managers (Hambrick & Mason, 1984). This theory links the variable top management characteristics with SMA implementation. Based on this theory, top management's reflection in making decisions is in accordance with its interpretation of reality. This interpretation comes from cognitive processes, beliefs, personality traits, and ethical norms of behavior obtained based on education, experience, and creativity (Pavlatos & Kostakis, 2017). Hypotheses Development Market orientation is an actual action that allows organizations to maintain markets and provide appropriate responses to various changes (O'Cass et al., 2015). Organizations that make their organizational culture market orientation will focus on external needs Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 309 and demands to formulate strategic business units within the organization (Cadez & Guilding, 2008). Hence, understanding customers requires obtaining and disseminating information about customer needs (Saedi & Othman, 2017). It aligns with contingency theory, which provides an understanding of product/service attributes within an organization needed by customers to determine organizational strategy. Specifically, market-oriented HEIs are indicated by the provision and adjustment of educational attributes, such as characteristics, features, and benefits of educational services aimed at meeting the needs of stakeholders, including prospective students, industry, and the business world. The development of SMA for HEIs is also believed to be a system adopted from a strategic framework (Hutaibat et al., 2011). Therefore, market orientation is a factor that needs to be considered in developing and implementing SMA in HEIs (Lay & Jusoh, 2017). Some research results from Yuliansyah et al. (2019), Lay and Jusoh (2017), Turner et al. (2017), and Cadez et al. (2017) support market orientation as a factor that needs to be taken into account in the development and implementation of SMA. Hence, the hypothesis proposed is as follows: H1: Market orientation has a positive effect on strategic management accounting. Based on the upper echelon theory, leadership characteristics reflect organizational performance, so the characteristics of organizational leaders influence SMA implementation. Leadership characteristics can be measured and observed, such as education and previous work experience (Reheul & Jorissen, 2014). Education is identified as a good indicator of one's cognitive perceptions, values, and preferences (Hambrick & Mason, 1984; Hambrick, 2007). Education is also one aspect of human capital that plays a role in company strategic decisions (Pavlatos & Kostakis, 2018). Furthermore, leadership experience can provide benefits, such as developing more comprehensive knowledge about the company (Pavlatos & Kostakis, 2018). Based on leaders' experience, they can interpret and feel conditions in conducting operational activities (Pavlatos & Kostakis, 2018). Departing from this, the characteristics of higher education leaders impact actions and behavior in strategic planning, control, and decision-making (Pavlatos & Kostakis, 2018). Further, educated and experienced higher education leaders will have a more remarkable ability to gather and disseminate information, chiefly openness to change existing systems to use SMA better (Kalkhouran et.al., 2017). In line with the research results of Kalkhouran et al. (2017) and Pavlatos and Kostakis (2018), top management characteristics significantly affected SMA implementation. Therefore, the researchers deduced the following hypothesis: H2: Top management characteristics have a positive effect on strategic management accounting. SMA is known as a strategically oriented set of accounting techniques and the accountants’ involvement in strategic organizational decision-making processes (Cadez & Guilding, 2008). SMA's strategic costing practice is related to determining, analyzing, Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 310 and managing costs oriented toward organizational strategy. In this case, strategy is the primary method and tactics designed systematically (strategic planning) in carrying out management functions directed at organizational goals (Prajogo, 2016). To achieve the vision, mission, goals, and objectives of the organization, management accounting practices are required. Management accounting practices that can support the achievement of the organization's vision, mission, goals, and objectives are management accounting practices that are appropriate and in line with organizational strategy. Therefore, the development and implementation of SMA must consider the choice of organizational strategy. In other words, organizational strategy is a contingency factor in SMA development (Langfield-Smith, 2006). It is also consistent with Sriyono's (2020) study results, stating that the type of strategy influenced the development of design and structure within the organization, including the development of SMA. Also, HEIs that implement a cost leadership strategy tend to have a higher intensity of implementing SMA (Chenhall, 2003; Alsharari et al., 2015; Marlina & Tjahjadi, 2021), so the hypothesis was determined as follows: H3: HEI strategy has effects on strategic management accounting. SMA implementation will be easier if information technology owned by the organization supports it. Tuanmat & Smith (2011) stated that companies face a more competitive environment, and advances in information technology will reinforce the implementation of SMA. It is coherent with the contingency theory that a policy cannot be applied universally but depends on certain situations and conditions. Rosli and Sidek (2013) also emphasized that information technology could support relevant SMA techniques in organizational and operational activities. Besides, Rosli and Sidek (2013) affirmed that using information technology as a source of knowledge makes information management more effective and efficient. Furthermore, information technology can increase the availability of big data about the internal and external conditions of the organization needed in the implementation of strategic management accounting (Azudin & Mansor, 2017). It agrees with the results of studies conducted by Tuanmat and Smith (2011) and Rosli and Sidek (2013), showing that information technology had a positive effect on the implementation of SMA, so the hypothesis was put forward as follows: H4: Information technology has effects on strategic management accounting. Based on the theoretical framework and existing literature, the conceptual framework of this research was formulated as depicted in Figure 1. Research Method This study used a quantitative approach. The population of this study was all HEIs in Indonesia, totaling 4,504 HEIs. The number of research samples was then determined using the Slovin formula to collect a minimum of 368. For the dispersion of this research Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 311 data acquisition, stratified random sampling was employed, obtaining 85 HEIs in Sumatra, 166 HEIs in Java, 29 HEIs in Kalimantan, 48 HEIs in Sulawesi, 24 HEIs in Bali and Nusa Tenggara, as well as 16 HEIs in Maluku and Papua. In addition, the respondents of this research came from the leaders of higher education institutions throughout Indonesia. Specifically, the research respondents were the chancellor or a representative for the chancellor, considering that the chancellor is the top leader of the HEI who is responsible for carrying out the operational activities of higher education, particularly in making strategic organizational decisions. The research data was then collected by distributing online questionnaires via Google Forms. Figure 1 The conceptual framework Moreover, the measurement of each variable used a 5-point Likert scale: (1) "Strongly Disagree," (2) "Disagree," (3) "Neutral," (4) "Agree," and (5) "Strongly agree." The operational definitions and indicators for each variable can be seen in Table 1. The data analysis technique in this study used SEM-PLS with the following justifications: (1) the measurement of this research instrument used the Likert scale. According to Suliyanto (2011), this Linkert scale includes ordinal data since it cannot describe the same characteristics or distances between objects. Based on this, this study employed nonparametric assumptions (predictor specifications). (2) This study aimed to confirm existing theories and concepts by using data and explaining the relationship between latent variables. Hence, SEM-PLS was more appropriate for this study as it could perform confirmatory multivariate analysis (Hair et al., 2014) and avoid serious problems, i.e., inadmissible solutions and factor indeterminacy (Fornell & Bookstains, 1982). In addition, this research data analysis examined the direct effects of each of the proposed hypotheses: the influence of market orientation, top management characteristics, HEI strategy, and information technology on the implementation of SMA. Technology information HEI Strategy Market orientation Top management characteristics Strategic management accounting Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 312 Table 1 Operational definitions and variable indicators Variable Operational definition Indicator Market orientation Market orientation is defined as the most effective and efficient organizational culture to create behavior that can produce the best for customers and produce superior performance for the organization (Sriyono, 2020). Customer understanding to create superior value (MO1) Customer understanding in a sustainable manner (MO2) Organization's understanding of the strengths (MO3) Organization's understanding of the weaknesses (MO4) Organization's understanding of the capabilities (MO5) Organization's understanding of strategies of competitors (MO6) Current competitors and potential competitors (MO7) Creating superior value for target customers (MO8) coordination between functions (MO9) Top management characteristics Top management characteristics are the value of leadership status (Pavlatos, 2015). Education (TMT1) Tenure (TMT2) HEI strategy The HEI strategy attempts to become an institution providing the best educational services by setting affordable costs for everyone (Marlina & Tjahjadi, 2021). Low educational costs (HS1) Very tight cost control (HS2) Producing standard services (HS3) Outsourced functions to control costs (HS4) Technology to lower costs (HS5) Analysis of costs related to activities (HS6) Rewards for employees (HS7) Technology information Information technology is a facility that uses hardware, software, and user as a medium so that information becomes effective and efficient (Georgina & Olson, 2008). Literation technology (TI1) Training technology (TI2) Technology learning (TI3) Administration online (TI4) Digital library (TI5) Technology integration (TI6) Service online system (TI7) Strategic management accounting SMA is an accounting information technique that can monitor the organization in achieving the organization's vision and mission (Hutaibat, 2019). Comparing the process and standards of research and service (SMA1) Comparing teaching processes and standards (SMA2) Performance evaluation refers to the vision and mission (SMA3). Performance evaluation transparency (SMA4) Strategic price (SMA5) Strategic costing (SMA6) Volatile income (SMA7) Static cost (SMA8) Commitment to budget (SMA9) Accountable (SMA10) Deliberate position (SMA11) Positioning (SMA12) Aware of the image of the institution (SMA13) Service quality evaluation (SMA14) Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 313 Results and Discussion Questionnaires were distributed to 500 HEIs spread across Sumatra, Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi, and Papua. The return rate for the questionnaire was relatively high, namely 76% or 380 questionnaires. However, only 368, or 73.6%, met the qualifications. Consequently, the data processed in this study were 368 questionnaires. The demographic data of respondents can be seen in Table 2. Table 2 Demographic of respondents Characters Frequency (People/HEI) Percentage (%) Gender Man 231 63 Woman 137 31 Education level Bachelor Master 244 66 Doctoral 124 34 Age 20-30 years old 66 24 31-40 years old 34 40 41-50 years old 66 27 >50 years old 34 9 Location Sumatera 153 42 Java 118 32 Bali and Nusa Tenggara 21 6 Kalimantan 17 5 Sulawesi 54 14 Maluku and Papua 5 1 HEI Type University 75 20 Academy 102 28 Institute 20 5 Higher school 23 6 Polytechnic 148 40 Descriptive Statistics Table 3 reveals the descriptive statistical analysis results for this study's variables. The mean and standard deviation values of market orientation variables were 3.40 and 1.194. Furthermore, for the characteristics of top management variables, the mean and standard deviation values were 3.73 and 1.251. The mean values for HEI strategy and information technology variables were 3.68 and 3.28, and the standard deviations were 1.134 and 1.221, respectively. Finally, the SMA variable obtained the mean and standard deviation of 3.60 and 1.101. From these data, the variable with the highest mean value was top management characteristics, whereas information technology had the lowest mean value. All variables had a higher average than the standard deviation, indicating that the data variation was low or relatively homogeneous. Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 314 Table 3 Descriptive statistics of research variables Indicator variables Minimum Maximum Mean Deviation Standard Market Orientation Customer understanding to create superior value (MO1) 1 5 3.83 0.949 Customer understanding in a sustainable manner (MO2) 1 5 3.55 1.274 Organization's understanding of the strengths (MO3) 1 5 3.35 1.367 Organization's understanding of the weaknesses (MO4) 1 5 3.30 1.210 Organization's understanding of the capabilities (MO5) 1 5 3.22 1.162 Organization's understanding of strategies of competitors (MO6) 1 5 3.36 1.223 Current competitors and potential competitors (MO7) 1 5 3.36 1.188 Creating superior value for target customers (MO8) 1 5 3.31 1.196 Coordination between functions (MO9) 1 5 3.31 1.185 Total 1 5 3.40 1.194 Top Management Characteristics Education (TMT1) 4 5 4.33 1.268 Tenure (TMT2) 1 5 3.14 1.235 Total 1 5 3,73 1.251 HEI Strategy Low educational costs (HS1) 1 5 3.68 1.200 Very tight cost control (HS2) 1 5 3.51 1.189 Producing standard services (HS3) 1 5 3.66 1.149 Outsourced functions to control costs (HS4) 1 5 3.81 1.046 Technology to lower costs (HS5) 1 5 3.60 1.161 Analysis of costs related to activities (HS6) 1 5 3.58 1.190 Rewards for employees (HS7) 1 5 3.92 1.003 Total 1 5 3,68 1,134 Technology Information Literation technology (TI1) 1 5 3.12 1.218 Training technology (TI2) 1 5 3.31 1.167 Technology learning (TI3) 1 5 3.47 1.383 Administration online (TI4) 1 5 3.43 1.304 Digital library (TI5) 1 5 3.23 1.205 Technology integration (TI6) 1 5 3.26 1.141 Service online system (TI7) 1 5 3.19 1.150 Total 1 5 3.28 1.224 Strategic management accounting Comparing the process and standards of research and service (SMA1) 1 5 3.62 1.020 Comparing teaching processes and standards (SMA2) 1 5 3.64 1.051 Performance evaluation refers to the vision and mission (SMA3). 1 5 3.59 1.129 Performance evaluation transparency (SMA4) 1 5 3.61 1.117 Strategic price (SMA5) 1 5 3.59 1.221 Strategic costing (SMA6) 1 5 3.59 1.028 Volatile income (SMA7) 1 5 3.55 1.117 Static cost (SMA8) 1 5 3.60 1.089 Commitment to budget (SMA9) 1 5 3.60 1.178 Accountable (SMA10) 1 5 3.54 1.169 Deliberate position (SMA11) 1 5 3.60 1.032 Positioning (SMA12) 1 5 3.65 1.045 Aware of the image of the institution (SMA13) 1 5 3.60 1.098 Service quality evaluation (SMA14) 1 5 3.61 1.122 Total 1 5 3,60 1,101 Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 315 Assessing the outer model, composite reliability, and Average Variance Extracted (AVE) in Table 4, the value of convergent validity could be seen from the outer loading value of each variable. According to Ghozali (2013), an indicator of each construct is declared valid if it has an outer loading value above 0.6. Next, the reliability value is high if each construct's reliability and AVE values are above 0.6 and 0.5 (Hair et al., 2014). Table 4 Values of outer loading Indicator Outer loading Reliability AVE Market Orientation 0.954 0.806 Customer understanding to create superior value (MO1) 0.903 Customer understanding in a sustainable manner (MO2) 0.911 Organization's understanding of the strengths (MO3) 0.915 Organization's understanding of the weaknesses (MO4) 0.895 Organization's understanding of the capabilities (MO5) 0.864 Top Management Characteristics 0.965 0.933 Education (TMT1) 0.965 Tenure (TMT2) 0.967 HEI Strategy 0.959 0.770 Low educational costs (HS1) 0.816 Very tight cost control (HS2) 0.896 Producing standard services (HS3) 0.879 Outsourced functions to control costs (HS4) 0.898 Technology to lower costs (HS5) 0.901 Analysis of costs related to activities (HS6) 0.888 Rewards for employees (HS7) 0.864 Information Technology 0.958 0.819 Technology learning (TI3) 0.921 Administration online (TI4) 0.923 Digital library (TI5) 0.913 Technology integration (TI6) 0.898 Service online system (TI7) 0.869 Strategic Management Accounting 0.973 0.722 Comparing teaching processes and standards (SMA2) 0.865 Performance evaluation refers to the vision and mission (SMA3). 0.873 Performance evaluation transparency (SMA4) 0.874 Strategic price (SMA5) 0.875 Strategic costing (SMA6) 0.883 Volatile income (SMA7) 0.783 Static cost (SMA8) 0.759 Commitment to budget (SMA9) 0.871 Deliberate position (SMA11) 0.820 Positioning (SMA12) 0.797 Aware of the image of the institution (SMA13) 0.858 Service quality evaluation (SMA14) 0.847 Table 4 displays that only five indicators met the convergent validity test of nine indicators for the market orientation variable, while the top management characteristics, HEI strategy, and information technology variables were all declared valid. Furthermore, for the strategic management accounting variable, from 14 Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 316 indicators, 13 indicators fulfilled the convergent validity test. Based on Table 4, it can be concluded that all constructs met the reliable criteria. It was indicated by the composite reliability value of 0.70 and AVE 0.50 as the recommended criteria. Discriminant Validity The discriminant validity of a model is said to be good if each loading value of each latent variable indicator has the most significant loading value with other loading values on other latent variables. The results of the discriminant validity test are presented in Table 5. Table 5 Cross-loading value Indicator OM TMT SPT TI SMA OM1 0.788 0.115 0.456 0.244 0.448 OM2 0.852 0.143 0.517 0.205 0.466 OM3 0.835 0.164 0.495 0.185 0.476 OM4 0.848 0.151 0.502 0.163 0.461 OM5 0.840 0.057 0.468 0.218 0.457 TMT1 0.261 0.965 0.464 0.225 0.450 TMT2 0.252 0.967 0.477 0.225 0.459 HS1 0.678 0.467 0.922 0.602 0.844 HS2 0.599 0.453 0.896 0.585 0.817 HS3 0.647 0.458 0.897 0.527 0.797 HS4 0.659 0.399 0.896 0.543 0.803 HS5 0.649 0.451 0.892 0.526 0.816 HS6 0.623 0.440 0.890 0.603 0.840 HS7 0.645 0.350 0.819 0.476 0.742 TI3 0.379 0.236 0.627 0.921 0.621 TI4 0.359 0.210 0.575 0.923 0.583 TI5 0.320 0.189 0.565 0.914 0.567 TI6 0.257 0.177 0.492 0.898 0.496 TI7 0.306 0.236 0.546 0.869 0.548 SMA2 0.627 0.451 0.797 0.534 0.906 SMA3 0.654 0.459 0.839 0.595 0.920 SMA4 0.607 0.418 0.786 0.532 0.878 SMA5 0.624 0.394 0.845 0.579 0.879 SMA6 0.614 0.374 0.789 0.498 0.862 SMA7 0.577 0.374 0.789 0.528 0.867 SMA8 0.617 0.403 0.817 0.561 0.883 SMA9 0.669 0.370 0.847 0.619 0.880 SMA10 0.650 0.441 0.847 0.593 0.886 SMA11 0.631 0.428 0.793 0.549 0.902 SMA12 0.618 0.456 0.796 0.531 0.906 SMA13 0.649 0.450 0.829 0.583 0.914 SMA14 0.616 0.418 0.786 0.531 0.878 Table 5 presents that the loading factor value for the latent variable indicator had a loading factor value more significant than the loading factor value for other latent variables. It demonstrates that the latent variable had good discriminant validity. Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 317 Hypothesis Testing Using Structural Model Analysis The structural or inner model was evaluated by looking at the percentage of variance explained, looking at R2 for the dependent latent construct using the Stone-Geisser Q- Square test size, and looking at the structural path coefficients. The results of testing the hypothesis and R-Square of this study are illustrated in Table 6. Table 6 Hypothesis testing result and r-square Hypothesis Symbol Original Sample (O) T Statistic P-Value Decision OM → SMA H1 0.132 3.141 0.002* Supported TMT → SMA H2 0.061 2.368 0.018* Supported SPT → SMA H3 0.711 12.429 0.000* Supported TI → SMA H4 0.120 3.885 0.000* Supported R Square SMA 0.672 * Significant at alpha 0.01; Adjusted R-Squared = 0.167 Discussion The results of testing hypothesis 1 (H1) indicate that market orientation positively and significantly affected SMA. The study's results support the contingency theory, suggesting that the situation and conditions will affect the implementation of a policy in an organization (Otley, 2016). HEIs with a strategic view are, of course, market orientation; in this case, prospective students are one of the defining factors in determining the Tri Dharma policy of higher education, including education and teaching, research, and service (Marlina et al., 2018). According to Sriyono (2020), HEIs with market orientation encompassing customer understanding, organizational understanding of strengths, weaknesses, capabilities, and competitor strategies, as well as coordination between functions in the use of resources, are essential things that need to be considered in making strategic organizational policies to excel in organizational competition. In this regard, SMA is a strategically oriented accounting information technique that considers internal and external aspects in achieving the organization's vision and mission. Undoubtedly, market orientation is one of the determining factors for effective and efficient implementation (Hutaibat et al., 2011). The results of this study reinforce the findings of Turner et al. (2017), Bouzourine (2017), Cadez et al. (2017), Yuliansyah et al. (2019), and Lay and Jusoh (2017), revealing that market orientation had a positive effect on the implementation of strategic management accounting in business companies. In line with the results of Sriyono's (2020) research, market orientation is a determining factor in implementing strategic management accounting in higher education institutions. Therefore, market orientation is a crucial factor in implementing strategic management accounting since it can present more comprehensive information, primarily the conditions of users and competitors, so that the information presented is more relevant to be used by management in making decisions. Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 318 Next, the results of testing hypothesis 2 (H2) show that top management characteristics positively and significantly affected SMA. It indicates that the characteristics of top management would affect the accuracy of the formal planning system, the complexity of the unit structure and coordination, the detail and accuracy of budgeting, and the complexity of the incentive compensation scheme. The study results also agree with the upper-echelon theory, proposing that the status of the leader influences the implementation of a policy in an organization (Hambrick & Mason, 1984). As such, higher education leaders have a vital role in determining organizational strategic policies in both academic and non-academic fields. Therefore, leadership status, translated as the level of education and experience, becomes one of the defining factors in determining the Tri Dharma policy of higher education, including education and teaching, research, and service (Kalkhouran et.al., 2017). As Pavlatos and Kostakis (2018) stated, top management characteristics comprise education and experience gained that can influence their mindset and tips in managing the organization. It is proven by the leadership of higher education institutions with a doctoral level of education having a different mindset from those with master's degrees. Furthermore, higher education leaders with experience as structural officials previously have different abilities from leaders not experienced in interacting with individuals involved in the organization’s operational activities. Moreover, SMA is an accounting information technique that can monitor the achievement of the organization's vision and mission. Of course, top management characteristics are one of the determining factors in its implementation in HEIs (Hutaibat et al., 2011). This study's results align with the findings of Kalkhouran et al. (2017) and Pavlatos and Kostakis (2018), showing that top management characteristics significantly affected the implementation of SMA. The results of testing hypothesis 3 (H3) demonstrate that the HEI's strategy positively and significantly affected SMA. The study's results reinforce the contingency theory that the situation and conditions will affect the implementation of a policy in an organization (Otley, 2016). HEIs with a strategic view set are one of the defining factors in determining the Tri Dharma policy of higher education, including education and teaching, research, and service (Marlina et al., 2018). Based on the HEI's strategy research results, including the lowest educational costs from competitors, very tight cost control, standardized services, outsourced functions to control costs, technology to reduce costs, analysis of costs related to activities, and rewards for employees for cost reduction, suggestions are made for meaningful activities to strategic planning (Marlina & Tjahjadi, 2021). Strategic planning contains short-term and long-term organizational goals so that the control and management of information become more focused, especially from the financial aspect; it certainly encourages the effective implementation of SMA (Sriyono, 2020). The results of this study corroborate with the research findings of Chenhall, 2003 and Alsharari et al. (2015), stating that strategy is a factor that needs attention in the development and application of strategic management accounting (SMA) in business firms. Consistent with the research results of Sriyono (2020) and Marlina and Tjahjadi Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 319 (2021), higher education strategy is one of the determining factors in implementing strategic management accounting in higher education institutions. Hence, HEIs strategy is critical in implementing strategic management accounting so that determining financial management policies aligns with achieving the organizational vision and mission. The results of testing hypothesis 4 (H4) uncover that information technology positively and significantly affected SMA. The study's results align with the contingency theory, putting forward that the situation and conditions will affect the implementation of a policy in an organization (Otley, 2016). In this case, media information technology facilitates the acquisition of higher-quality information and data (Pavlatos 2015) to encourage the implementation of SMA in HEIs. Based on the research results, information technology, including technology learning and online administration, technology integration and online service systems, as well as literacy and training, will encourage the implementation of strategic management accounting in the form of benchmarking, integrated performance measurement, strategic decision making, volatile income, fixed cost, accountant line of action, deliberate position and positioning, and identified vital distinction (Hutaibat et al., 2011). Thus, with information technology, the availability of information is much more effective and efficient, so it supports the availability of big data, which plays a crucial role in implementing strategic management accounting. The results of this study are consistent with the research of Rosli and Sidek (2013), Pavlatos (2015), and Abdullah et al., (2020) finding that information technology had a positive effect on the implementation of strategic management accounting. Conclusion This study aimed to examine the determinants of SMA implementation in HEI, including market orientation, top management characteristics, HEI strategies, and information technology. Based on the findings, market orientation, top management characteristics, HEI strategy, and information technology positively affected the implementation of SMA in HEIs. Based on the research results, theoretical implications can be found in the form of this research being able to expand on contingency and upper-echelon theories, primarily in terms of factors that must be considered in implementing strategic management accounting in HEIs to run more efficiently and effectively. Further, the results of this study are expected to be useful for other studies to add insight and knowledge regarding market orientation, top management characteristics, higher education strategy, information technology, and strategic management accounting in HEIs. Furthermore, for the practical implications, this research is expected to provide information for owners and managers of HEIs in financial management in the form of implementing strategic management accounting by paying attention to resource capabilities in the field of market orientation, top management characteristics, strategies, and utilization of information technology. It is hoped that regulators can help Marlina, Putri & Suriyanti Determinants of strategic management accounting implementation … Journal of Accounting and Investment, 2023 | 320 develop higher education management standards related to the management aspects of their resources The limitations of this study are related to the depth of the research because research data collection was carried out by distributing questionnaires online. Furthermore, this research ignores the sample based on the type and size of HEIs. For further research, it is recommended to collect data by conducting interviews to explore the data obtained more deeply. Furthermore, it is also suggested to add control variables in the form of the type and size of HEIs so that the research results are not biased. In addition to adding other variables as determinants of implementing strategic management accounting in HEIs, such as environmental changes and regulations. References Abdullah, N. H. N., Harjito, D. 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