MANAGEMENT ACCOUNTING TECHNIQUES AND FINANCIAL PERFORMANCE &ROLE OF STRATEGIC FLEXIBILITY: INDUSTRIAL COMPANIES LISTED ON THE IRAQ STOCK EXCHANGE

Abstract

This study aims to analyze the impact of utilizing modern management accounting techniques
on the financial performance of Iraqi industrial companies listed on the Iraq Stock Exchange, with a
particular focus on the moderating role of strategic flexibility in enhancing this relationship. The research
adopted a descriptive-analytical methodology, and data were collected via a structured questionnaire
distributed to a sample of 400 employees working in the financial and administrative departments of
selected industrial firms. A set of advanced statistical methods was employed, including multiple linear
regression and Structural Equation Modeling (SEM), to test the primary and subsidiary hypotheses.
The findings revealed a statistically significant and positive impact of management accounting
techniques—such as Activity-Based Costing (ABC), Total Quality Management (TQM), and Target
Costing (TC)—on improving financial performance. Furthermore, the results confirmed that strategic
flexibility plays a critical moderating role in strengthening the relationship between these techniques and
financial performance, especially in companies with a greater capacity to adapt to environmental and
market changes.
Among the techniques examined, Target Costing showed the strongest influence on financial
performance, whereas the application of Total Quality Management required higher levels of
organizational readiness and adequate resources to achieve favorable outcomes. Additionally,
demographic variables such as firm age and size did not demonstrate a statistically significant effect on
financial performance.
The study recommends the adoption of modern management accounting techniques within a flexible
strategic framework, given their vital role in enhancing operational efficiency, promoting transparency,
and achieving sustainable financial performance.