Enhancing competitive advantage in servitized manufacturing companies through management accounting information: evidence from the United Arab Emirates and Indonesia

Document Type

Article

Source of Publication

Meditari Accountancy Research

Publication Date

3-4-2026

Abstract

PurposeThis study aims to investigate the effect of management accounting information (MAI) on the competitive advantage (CA) in servitization companies in the UAE and Indonesia. This study also examines the mediating influence of information processing capability (IPC) and decision-making effectiveness (DME) on the nexus of MAI and CA.Design/methodology/approachA survey of 377 servitized manufacturing companies was conducted in the UAE and Indonesia. The authors analyzed the data using partial least squares structural equation modeling. The authors also compared the path model of two subsamples from Indonesia (156 firms) and the UAE (221 firms) by using difference test (t-test).FindingsThis research finds that IPC and DME play a crucial role in translating the information from the management accounting function into the achievement of the CA in servitized companies. The results confirm that MAI is a determinant of CA, as it enables companies to gain better decision-making capabilities. In addition, the authors discover that IPC mediates MAI and CA in the total sample and UAE's sample, but slightly different for Indonesia's sample. The study suggests that IPC in Indonesia is used to produce daily routine tasks at the operational level and does not necessarily contribute to the CA directly. Thus, in the Indonesian case, the mediating role of IPC has indirect influence on CA through DME.Originality/valueThis study contributes by studying the interrelationships among MAI, IPC, DME and CA to better understand the role of MAI in the servitized manufacturing companies in the context of two emerging economies.

ISSN

2049-372X

Publisher

Emerald

Disciplines

Business

Keywords

Servitization, Competitive advantage, Management accounting information, Information processing capability, Decision-making effectiveness, Emerging economy

Indexed in Scopus

no

Open Access

no

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