Factors Influencing the Adoption of Management Accounting Practices among Albanian Family Businesses

Abstract

Purpose – This study focuses on family businesses, defined as enterprises owned, controlled, and managed by family members who are related by blood or marriage. Family businesses are of significant interest because they represent 65-80% of all enterprises in Europe and have a substantial impact on a country's GDP and employment levels. Since the adoption of Management Accounting Practices (MAPs) is a key factor in business success, we aim to investigate how widely these practices are adopted among Albanian family businesses and identify the key factors that influence their adoption.

Methodology – To achieve the objectives of our study, we collected primary data through questionnaires sent to business owners/managers in Albania. We analyzed the data using qualitative methods to assess the adoption extent of MAPs in family businesses and quantitative methods (regression) to identify the key factors influencing this adoption.

Findings – The findings reveal a low relatively level of adoption of MAPs among Albanian family businesses. Their management accounting systems are predominantly informal and unsophisticated. Moreover, characteristics unique to family businesses are the main drivers of this adoption.

Conclusion – The state of MAP adoption among family businesses in Albania suggests a potential area for significant improvement. The unique characteristics of family businesses, which influence this adoption, highlight the need for tailored management accounting solutions that align with their specific management styles. Future initiatives and policies should focus on educating and equipping family businesses with the tools and knowledge necessary to implement more formal and sophisticated MAPs, thereby enhancing their decision-making processes and competitive advantage.