Management Accounting Techniques and Project Performance of Major Construction Companies in Nigeria

Abstract

To remain competitive, construction companies must continually improve and one way is by use of the right MATs. In this regard, the adoption of MATs can help organizations to improve their project performance continually and consequently overall national economic development. Therefore, the study investigated influence of management accounting techniques on project performance of construction companies in Nigeria. The objectives were, to assess the performance level of construction companies in Nigeria, to examine the influence of activity-based costing (ABC), strategic analysis, and budgeting practices on project performance. The study used quantitative research design while the target population was all the 35 major construction firms. The sample size was 13 companies. The research used questionnaire to gather data from 170 managers. The study used descriptive statistics and inferential analysis. The study found that ABC, strategic analysis, and budgeting practices had positive relationship with project performance. The study concludes that the companies employed ABC to improve performance. The study concludes that most companies used both internal and external analysis to improve performance. The study concludes that many companies failed to involve all departments during budgeting. The research concludes that the government policies did not provide conducive business environment. The study recommends that companies should increase resources to complete projects within stipulated time frame. The study recommends that the policies should be enhanced by conducting researches and regular evaluation to improve business environment for the realization of improved project performance of the construction companies.