Optimizing Romanian Managerial Accounting Practices through Digital Technologies: A Resource-Based and Technology-Deterministic Approach to Sustainable Accounting

Abstract

The rapid advancement of Big Data and artificial intelligence (AI) has significantly transformed management accounting practices, necessitating a reevaluation of job profiles and skill-sets required for professionals in this field. This study explores managerial accounting practices in Romanian contexts, examining how digital technology aligns with competitive strategy, managerial efficiency, human resources constraints, and limited resources constraints. Grounded in technology determinism and the resource-based view theory, this research identifies factors influencing the successful implementation of and challenges associated with managerial accounting practices. A sequential mediation analysis investigates pathways wherein investments in human resources and constraints related to limited resources influence managerial advancement through digital technology and competitive strategy. This study emphasizes digital technologies’ role in optimizing costs, enhancing operational processes, and facilitating strategic decision-making. This study’s conclusions show that, even in situations with limited resources, digital transformation projects greatly improve managerial effectiveness and competitive strategy. The participants included 406 professional accountants from the Romanian accounting community. Practical implications for companies include the necessity for strategic planning in digital implementations to mitigate constraints and capitalize on opportunities for sustainable growth and competitive advantage. This report provides a path to optimize the potential of digital technology and gives practical recommendations for researchers and business leaders.

1. Introduction

Big Data’s introduction has drastically changed the nature of work in several industries, including managerial accounting. To be relevant and productive in the digital era, accountants must adapt their skill-set in response to this disruptive influence. A paradigm shift in which conventional accounting responsibilities are being reinterpreted to suit new technical breakthroughs and analytical tools has resulted from the integration of Big Data into managerial accounting processes.

Big Data has a significant impact on managerial accountants since it requires different abilities to carry out their jobs effectively and alters the nature of their employment. Studies examine the wide-ranging effects of Big Data on society, emphasizing how it is upending traditional job descriptions and calling for a reconsideration of the legitimacy of professional positions [1]. There is a need for new abilities in data analysis and interpretation, as evidenced by specific research looking at how Big Data influences accountants’ work profiles [2]. The need for accountants to acquire new skill-sets is increasing in reaction to these developments. A holistic strategy that incorporates new technology and stakeholder interaction is advocated by recent research, which highlight the importance of stakeholders in creating the future skill needs of accountants [3]. Additional reviews offer a grounded theory that emphasizes the significance of keeping up with technology changes and describes how digital technologies are changing the managerial accounting field [4].

Managerial accounting practices are particularly affected by these technological shifts. The use of Big Data and digital tools has revolutionized traditional practices, enhancing the ability of accountants to analyze financial data, forecast trends, and support strategic decision-making. Research highlights how business analytics tools are reshaping the future skills and competencies required for accountants, emphasizing the critical role of these tools in enhancing financial performance [5]. Studies explore the intertwined effects of digital literacy, an agile mindset, and design-thinking skills on management control competency, providing insights from young accountants [6].

Moreover, discussions address the challenges and strategies for human capital management in the modern workplace, focusing on accountants [7]. Insights on the integration of digital technologies in sustainability accounting and reporting reflect the perceptions of professional cloud-computing users [8]. These advancements in digital technology are integral to modern managerial accounting practices, providing new ways to handle data, improve accuracy, and drive efficiency. Research also examines the moderating role of digital environmental management accounting in the relationship between eco-efficiency and corporate sustainability, highlighting the importance of digital tools in enhancing sustainability practices [9]. Finally, a proposed framework for integrating generative AI in developing competencies for accounting and audit professionals illustrates the forward-looking potential of AI in the accounting domain [10]. These developments underscore the evolving landscape of managerial accounting, where traditional practices are continuously being transformed by innovative digital solutions.

In today’s workplaces, effective use of managerial accounting practices is essential for making informed decisions and improving organizational performance [11,12]. These practices encompass various strategies and efficiencies that enable organizations to optimize resource allocation and achieve strategic objectives [13]. However, organizations often encounter challenges in implementing these practices effectively due to constraints such as human resources and limited resources [14].

The existing body of research has thoroughly explored how managerial accounting practices impact organizational performance, highlighting their role in fostering competitiveness and innovation [15,16]. However, there remains a gap in our understanding of how these practices interact with internal constraints that affect their adoption and effectiveness within organizations. Theories such as technology determinism and the resource-based view provide frameworks to understand how organizational dynamics and technological advancements influence managerial accounting practices [17].

Competitive strategy is a critical indicator, as it reflects how organizations use managerial accounting to enhance their competitive positioning. The integration of digital technologies, such as cloud computing and data analytics, into accounting practices enables organizations to gain strategic insights and improve decision-making processes [18]. Managerial efficiency, another vital indicator, focuses on the effectiveness and productivity of management processes facilitated by accounting practices [19]. Efficient managerial practices are essential for optimizing operations and achieving strategic goals.

Constraints in human resources and limited resources are significant barriers to the effective implementation of managerial accounting practices. Human resource constraints, such as a lack of skilled personnel, hinder the adoption of advanced accounting techniques, while limited financial and material resources restrict the scope and scale of these practices [20,21]. Understanding these constraints is crucial for developing strategies that can overcome them and enhance organizational efficiency [22].

The significance of digital technology as an indicator lies in its transformative impact on managerial accounting. Advancements in technology drive the adoption of innovative accounting practices, enabling organizations to streamline operations and improve accuracy in financial reporting [23]. Digital technology acts as a catalyst for overcoming traditional resource constraints and enhancing managerial efficiency [24,25].

Prior research has mostly concentrated on the benefits and advantages of managerial accounting practices; however, the unique challenges posed by human and resource constraints have not been fully explored. Understanding how these limitations impact the use and outcomes of managerial accounting practices is essential for creating targeted solutions that can solve problems and boost organizational effectiveness [26,27].

Thus, this paper seeks to fill this gap by investigating how competitive strategy, managerial efficiency, constraints in human resources, limited resources, and the significance of digital technology interrelate in the application of managerial accounting practices. This study focuses on analyzing the fundamental dimensions that influence how organizations utilize managerial accounting practices and manage constraints. It aims to examine how digital technology’s significance correlates with these dimensions. Furthermore, the research seeks to analyze how limitations in human and limited resources impact managerial advancement through pathways involving digital technology and competitive strategy. Finally, the research will investigate the practical and theoretical consequences of these associations for organizational performance and competitiveness, using insights from technology determinism and the resource-based view theory. This study adds to our knowledge of the variables influencing the adoption of managerial accounting practices, which will help decision-making processes and organizational strategy.

The remainder of this paper is structured as follows: Section 2 presents the literature review, providing an in-depth analysis of previous studies related to Big Data and its impact on management accounting practices. Section 3 outlines the methodology employed in the study, detailing the data collection and analysis processes. Section 4 discusses the results, interpreting the findings in the context of the existing literature. Section 5 discusses the implications of the study for practice and future research directions, emphasizing the potential long-term impact of digital technologies on management accounting practices. Section 6 concludes the paper, summarizing the key findings and suggesting avenues for further research.

2. Literature Review

The evolving landscape of management accounting is significantly influenced by the integration of Big Data and artificial intelligence (AI). As organizations increasingly leverage these technologies, the roles and responsibilities of management accountants are undergoing profound transformations. This section reviews recent literature to provide a comprehensive overview of how Big Data and AI are reshaping management accounting practices, the evolving skill-sets required, and specific advancements in the Romanian context.

Big Data has introduced substantial changes to job profiles within management accounting. Traditionally focused on financial reporting and budgeting, management accountants are now required to adapt to a more data-driven role. The disruption caused by Big Data involves not only the automation of routine tasks but also the enhancement of strategic decision-making capabilities. Studies highlight that Big Data analytics is shifting the role of management accountants from data processors to strategic advisors. Recent research discuss how Big Data is influencing job profiles, indicating a transition towards roles that demand advanced analytical skills and a strategic perspective [2].

As the field of management accounting adapts to technological advancements, the skill-sets required by professionals are evolving. The digital era necessitates proficiency in data analytics, digital literacy, and a solid understanding of emerging technologies. According to research, future accountants must acquire competencies in data interpretation, technological tools, and strategic analysis to stay relevant in the changing landscape [3]. These new skill requirements underscore the shift towards a more analytical and technology-driven approach in management accounting.

In Romania, the adoption of AI and Big Data in management accounting is gaining momentum. Recent studies explore how these technologies are being applied to enhance financial decision-making and reporting processes. Recent research provide a comprehensive review of digital technologies and their impact on the management accounting profession, highlighting significant advancements in the field [4]. Similarly, authors examine the integration of digital technologies in sustainability accounting and reporting, offering insights into the perceptions of professional users in Romania [5]. These advancements reflect a broader trend of increasing sophistication in management accounting practices, driven by technological innovations.

Technology determinism and the resource-based view (RBV) offer valuable perspectives on how organizational dynamics and technological progress shape managerial accounting practices. According to technology determinism, advancements in technology drive societal changes and influence organizational behaviors [28]. In the field of management accounting, this theory contends that the use of digital tools such as cloud computing and data analytics radically affects how firms manage financial data and plan [29].

On the other hand, the resource-based view paradigm emphasizes the strategic relevance of internal resources and skills in achieving long-term competitive advantages [30]. In the context of managerial accounting, RBV emphasizes how organizational resources such as human capital and technical infrastructure help to improve decision-making and performance [31].

Romanian management accounting procedures have changed dramatically, affected by both historical trends and current economic conditions. The contributions of scholars like Grigore L. Trancu-Iasi have shaped the evolution of accounting theory and practice in Romania, emphasizing adaptation to international standards while retaining local relevance [32]. However, the adoption of sustainable accounting practices, particularly integrating digital technologies, presents both advantages and challenges for Romanian organizations.

Integrating sustainable accounting with digital technologies in Romania offers several benefits. It enhances transparency by providing clearer insights into environmental impacts and ensures better compliance with international sustainability standards [33]. Furthermore, digital technologies offer real-time data-collecting and analysis, facilitating proactive decision-making and strategic planning to achieve sustainable development goals [34]. However, barriers to wider adoption include initial investment costs, cybersecurity hazards, and the requirement for experienced individuals to operate digital platforms [35]. Moreover, cultural and regulatory barriers may impede the full integration of digital technologies into existing management accounting frameworks in Romanian organizations [36,37].

Despite these advantages, significant challenges remain. The use of digital platforms confronts considerable obstacles due to high initial costs and ongoing cybersecurity threats [25]. Furthermore, a lack of experienced staff capable of successfully managing and deploying these technologies remains a significant impediment. Cultural and legislative complications impede integration efforts, requiring firms to negotiate many frameworks and modify their processes to local environments [36].

Digital technology has a significant impact on management accounting practices by improving organizational processes and decision-making capacities. These solutions increase data quality, operational efficiency, and strategic flexibility, allowing firms to make well-informed decisions that generate performance gains [38]. Such advancements also facilitate better resource allocation and cost management, thereby optimizing operational outcomes and supporting long-term sustainability goals [39].

Competitive strategy in managerial accounting involves aligning financial strategies with organizational goals to achieve a sustainable competitive advantage [40]. In this study, competitive strategy is defined based on the work of [22], which explores the mediation role of environmental management accounting in achieving a green competitive advantage. Integrating digital technologies into competitive strategy enhances organizational profitability and market positioning by providing actionable insights for strategic financial decisions [41]. This strategy empowers organizations to seize market opportunities and manage risks effectively. This strategy empowers organizations to seize market opportunities and manage risks effectively. Another vital aspect, managerial efficiency, emphasizes optimizing resource allocation and operational processes to boost productivity and lower costs [42]. Digital technologies help in this area by automating regular processes, expediting financial reporting, and improving performance analysis [43]. These innovations enable firms to be more efficient and competitive in today’s fast-paced commercial environment. Human resource management (HRM) practices in managerial accounting seek to increase employee productivity and happiness, both of which are critical to corporate performance [44]. Digital technologies boost human resource management methods by streamlining recruiting procedures, allowing for remote work flexibility, and increasing training efficacy and performance assessments [45]. This integration cultivates a more adaptable and responsive workforce, capable of meeting evolving organizational needs and market demands.

Meanwhile, limited resources pose significant challenges in managerial accounting, including budget constraints and resource scarcity, which impact organizational operations [46,47,48,49]. Digital technologies address these challenges by optimizing resources, facilitating cost-efficient decision-making, and supporting sustainable resource allocation [37]. These capabilities empower organizations to achieve greater efficiency and resilience, maximizing operational outcomes despite resource limitations. These frameworks and subscales provide a thorough knowledge of how digital technologies affect numerous elements of management accounting in Romania. They emphasize the necessity of strategically exploiting digital advances to overcome obstacles and seize opportunities for long-term growth and competitive advantage. This study summarizes existing information while emphasizing the critical need for additional research to bridge gaps and deepen insights into management accounting procedures, particularly those involving digital technology and sustainability. Previous studies [50,51,52,53,54,55] have often focused on the benefits of managerial accounting practices, frequently neglecting the specific challenges posed by limited human and financial resources within organizations.

Understanding how constraints affect the implementation and outcomes of managerial accounting practices is crucial for developing targeted strategies that significantly enhance organizational efficiency. Effective managerial accounting practices are not only influenced by internal resources but also by external factors such as governance, technological advancements, and operational changes. Research has demonstrated that addressing these constraints can lead to improved performance and efficiency. For instance, research [56] highlights how deterministic frontier analysis can be utilized to measure performance in the infrastructure sector, offering insights into how resource constraints impact accounting practices. Authors [57] discuss the role of governance in entrepreneurship across various economies, illustrating how governance constraints can affect managerial accounting outcomes. Additionally, research [58] explores the integration of artificial intelligence in risk management, emphasizing the opportunities and challenges posed by technological constraints, and research [59] analyzes the impact of telework on organizational performance and culture, demonstrating how changes in work practices and constraints affect managerial efficiency.

Although the literature offers a strong basis for comprehending how Big Data and AI will affect management accounting, it is crucial to take into account the real-world difficulties and constraints brought about by these technological advancements. For example, even though the potential advantages of digital technology are widely established, organizational inertia and staff members’ low level of digital literacy frequently make implementation difficult. To prevent exaggerating their immediate influence on management accounting procedures, the excitement surrounding Big Data and AI should be restrained with a realistic assessment of these difficulties. Furthermore, the literature frequently highlights the benefits of digital transformation without giving enough attention to any potential drawbacks, like worries about data privacy and the dangers of relying too heavily on automated systems. Future studies must take a balanced approach that addresses the potential hazards and ethical issues related to the use of digital technology in management accounting in addition to highlighting the opportunities that these tools bring. Although the use of digital technology in management accounting appears promising in Romania, local considerations, including regulatory frameworks and the availability of qualified personnel, must be taken into consideration. Adoption of these technologies in Romania will be contingent upon Romanian organizations’ capacity to effectively manage these regional obstacles and formulate customized plans that make efficient use of digital tools.

The present research investigates how competitive strategy, managerial efficiency, and constraints related to human and limited resources interact with the significance of digital technology to impact the implementation and effectiveness of managerial accounting practices within organizations.

This study analyzes the core dimensions that underpin arguments supporting the adoption of managerial accounting practices and the barriers organizations face in this process. It also seeks to explore the associations between the adoption of digital technology and these identified dimensions. Our research will explore the connections between the adoption of digital technology and these identified dimensions and investigate the sequential pathways through which human resources and limited resources constraints influence managerial progress, mediated by digital technology and competitive strategy.

Based on the literature and in line with the variables in our questionnaire, we have established the following hypotheses to strengthen the validity of our study and offer a coherent argumentation thread across the manuscript. Our inquiry into how digital technologies affect management accounting procedures in Romanian firms is guided by three assumptions, with a particular emphasis on correlation and mediation analyses:

H1: 

There is a positive correlation between the importance of digital technology and competitive strategy in managerial accounting practices.

H2: 

There is a positive correlation between digital technology importance and managerial efficiency within organizations.

H3: 

There is a negative correlation between human resources constraints and the importance of digital technology in managerial accounting practices.

H4: 

There is a negative correlation between limited resources constraints and the importance of digital technology in managerial accounting practices.

H5: 

Limited resources and digital technology importance sequentially mediate the relationship between human resources constraints the and managerial efficiency.

3. Methodology

3.1. Participants

The research included 406 participants, all of whom were professional accountants. Convenience sampling was used to recruit participants, utilizing professional networks within the accounting community. This selection strategy provided access to a varied pool of respondents with various degrees of experience and ability in management accounting.

In terms of gender distribution, 52% were female and 48% male. In terms of age, 25% of participants were 25–34 years old, 35% were 35–44 years old, 30% were 45–54 years old, and 10% were 55 or over. In terms of company tenure, 10.8% of participants reported working for companies that had been in operation for one year, 20.9% for two years, 17.0% for three years, and 51.2% for four years or more.

3.2. Instruments

In this study, two variables were utilized to assess the reasons for employing management accounting systems as well as the barriers to their implementation. Both tests employed a 1–5 Likert-type answer format, with respondents indicating how much they agreed or disagreed with each item (Appendix A).

The advantages in the utilization of management accounting practices scale consists of eight questions meant to assess respondents’ perceptions of the rationale for using managerial accounting procedures. The items were inspired by [60] and are designed to capture factors related to competitive strategy and managerial efficiency inside businesses. Cronbach’s Alpha, which measures internal consistency, was found to be 0.931. The additional reliability statistics yielded a McDonald’s ω point estimate of 0.932. This high coefficient indicates excellent internal consistency, suggesting that the items within the scale are strongly correlated and effectively measure the same underlying construct. Values above 0.90 are considered excellent, underscoring the reliability of the scale in capturing the intended dimension of interest. In terms of descriptive statistics, the mean score of the scale was 29.665. This average score reflects the central tendency of respondents’ answers, indicating that, on average, the ratings were around this value. The variance, calculated at 51.265, measures the dispersion of responses around this mean, revealing a substantial degree of variability among respondents’ answers. The standard deviation of 7.15998 further illustrates this dispersion, showing that individual responses typically deviate from the mean by approximately 7.16 points. This level of variability highlights the diverse perspectives of the respondents.

The analysis of the scale’s relevance was conducted using Hotelling’s T-squared test, which assesses the significance of the mean vector in a multivariate setting. The test yielded a T-squared value of 236.154, indicating a substantial deviation of the sample mean from the hypothesized mean vector. The F value of 33.237 reinforces this finding, as it suggests a strong relationship among the variables tested. With degrees of freedom at df1 = 7 and df2 = 399, the test results were highly significant, as evidenced by a p-value of 0.000. This p-value, reported as less than 0.001, confirms that the observed results are statistically significant, with a very low likelihood that the findings are due to random chance. Overall, these results affirm the scale’s reliability and the relevance of the measured variables.

The disadvantages in the utilization of management accounting practices scale consists of seven questions designed to assess respondents’ perceptions of the restrictions that hinder the use of managerial accounting practices. The items were inspired by [61] and are intended to capture variables linked to human resources and restricted resource restrictions inside companies. The statistical analysis revealed robust reliability and significant relevance of the scale used. The results from the statistical analysis confirm both the reliability and relevance of the scale used. The Cronbach’s Alpha of 0.927 indicates excellent internal consistency, reflecting that the items on the scale are highly reliable and measure the same construct consistently. The additional reliability statistics yielded a McDonald’s ω point estimate of 0.927.

The descriptive statistics show a mean of 23.3818, with a variance of 53.684 and a standard deviation of 7.32690, suggesting that while responses generally cluster around the mean, there is notable variability in the data. This spread of responses is typical and indicates a range of opinions or experiences among participants. Additionally, Hotelling’s T-squared test results, with a T-squared value of 94.883 and an F value of 15.619, demonstrate the significant relevance of the scale items. The test’s degrees of freedom (df1 = 7 and df2 = 400) and the p-value of 0.000 underscore the statistical significance of these findings, confirming that the relationships observed are unlikely to be due to chance. Overall, these results validate the scale’s effectiveness and the meaningfulness of the data collected.

Next, inspired by [62], we employed a single-item research question to measure the overall importance of digital technology within the context of sustainable managerial accounting. Specifically, item 7 asked respondents to rate the relevance of digital technology in sustainable accounting. This approach was chosen to capture a broad, unidimensional perspective on the role of digital tools and innovations in promoting sustainable managerial practices. By using a single item, we aimed to obtain a sharp, focused view of respondents’ perceptions without analyzing specific aspects, ensuring a clear and concise measure of the construct. This method aligns with our objective to assess the general significance of digital technology, rather than exploring multiple dimensions or subdimensions, thereby providing a direct insight into its perceived impact on sustainable managerial accounting.

3.3. Procedure

The data for this study were analyzed using the SPSS v26 PROCESS macro Model 6. This statistical model was selected to perform a detailed analysis of the sequential mediation effects and to assess the relationships between competitive strategy, managerial efficiency, and constraints on the implementation of managerial accounting practices.

The research was conducted from February to April 2024. During this period, an online questionnaire was distributed through Google Forms, targeting professional accountants within Romania. The distribution was carried out both online and offline via various accounting communities to ensure a diverse respondent pool (

Table 1. Graphical framework of the study procedure.

Stage	Description
Participant selection	Recruitment of 406 professional accountants via convenience sampling through professional networks, using our online questionnaire created in google forms.
Instrument design	Development of two scales and a single-item research question based on previous research.
Data collection	Administration of the scales and research question using a 1–5 Likert-type format.
Data analysis	Utilization of Cronbach’s Alpha and McDonald’s Omega for reliability testing and Hotelling’s T-squared test for relevance.
Results interpretation	Analysis of mean scores, variances, standard deviations, and statistical significance, performing the correlation analysis and the sequential mediation analysis.

).

To provide a clearer understanding of the methodology, we have included

Table 2. Instruments, sample questions, and references.

Instrument	Sample Questions	Reference
Advantages of managerial accounting practices utilization Scale	item 15.1. To be more competitive than competitors. item 15.5. Because managers require management information for their own decision-making needs. item 15.8. To ensure the survival and sustainability of the company.	[60]
Disadvantages of managerial accounting practices utilization scale	item 16.1. Lack of interest from managers/administrators. item 16.3. Lack of financial support from management for implementing managerial accounting practices. item 16.4. Lack of professional specialization in managerial accounting.	[61]
Single-Item Research Question on Digital Technology	item 7. Please rate the relevance of digital technology in the context of sustainable accounting.	[62]

, which summarizes the instruments used for data collection.

The single-item research question was employed to assess the relevance of digital technology in sustainable accounting. This approach was chosen to capture a focused perspective on the perceived importance of digital tools without delving into specific aspects. Although using a single-item measure may not be standard practice, it provides a sharp, unidimensional perspective on the respondent’s view of digital technology’s role, as corroborated by similar studies employing single-item measures to capture overall perceptions effectively.

4. Results

4.1. Exploratory Factor Analysis

Based on the results of the exploratory factor analysis (EFA) conducted on the arguments for managerial accounting practices utilization scale (8 items), the following findings emerged: the analysis revealed two distinct factors underlying the scale, factors that will further be referred to as competitive strategy and managerial efficiency (

Table 3. Factor loadings for advantages for managerial accounting practices utilization scale.

Factor Loadings
	Factor 1 Competitive Strategy	Factor 2 Managerial Efficiency	Uniqueness
item15.2	1.049		0.167
item15.1	0.751		0.315
item15.4	0.626		0.270
item15.3	0.537		0.340
item15.6		0.826	0.485
item15.8		0.769	0.238
item15.7		0.671	0.255
item15.5		0.492	0.414

Note. Applied rotation method is prom ax.

).

The factor loadings reveal how much each item contributes to the underlying factors. Item 15.2. For cost tracking and control, exhibited the highest loading (1.049) on Factor 1, competitive strategy, suggesting a strong association with this aspect. This indicates that respondents perceive cost tracking and control as essential for enhancing the competitive positioning of the company. Similarly, items 15.1, 15.4, and 15.3 also demonstrated relatively high loadings on Factor 1, implying significant contributions to competitive strategy considerations.

Conversely, Factor 2, managerial efficiency, was predominantly influenced by item 15.6. It is easy to apply, which displayed the highest loading (0.826). This item suggests that respondents perceive ease of application as crucial for managerial efficiency within the organization. Items 15.8 and 15.7 also showed substantial loadings on Factor 2, indicating their importance in enhancing managerial efficiency.

Item 15.5, which has a lower factor loading, was retained in our analysis due to its theoretical relevance to the construct of competitive strategy. Despite its lower loading, this item provides essential insight into the construct’s nuanced aspects, and its inclusion ensures a comprehensive representation of competitive strategy. A robustness check confirmed that removing this item had minimal impact on the scale’s overall validity, justifying its retention for a more complete analysis.

Overall, the unrotated solution revealed substantial eigenvalues for both factors, with Factor 1 explaining a larger proportion of the variance compared to Factor 2. However, after rotation, Factor 1 accounted for 36.7% of the cumulative variance, while Factor 2 explained 32.3%. This suggests that while both factors are significant, Factor 1, competitive strategy, contributes more to the overall understanding of arguments for managerial accounting practices utilization. Fit indices further supported the validity of the identified factors. The root mean square error of approximation (RMSEA) was 0.121, suggesting that the model fit the data only marginally, as RMSEA values below 0.05 are considered good, values between 0.05 and 0.08 are acceptable, and values between 0.08 and 0.1 are deemed marginal [63]. The Tucker–Lewis Index (TLI) and comparative fit index (CFI) were 0.931 and 0.968, respectively, indicating that the model is well fitted. Furthermore, the Bayesian information criterion (BIC) was 11.767, demonstrating the parsimony of the model (

Table 4. Additional fit indices for advantages for managerial accounting practices utilization scale.

Additional Fit Indices
RMSEA	RMSEA 90% Confidence	SRMR	TLI	CFI	BIC
0.121	0.098–0.145	0.023	0.931	0.968	11.767

).

In conclusion, the EFA results delineate a robust structure for understanding the arguments in favor of utilizing managerial accounting practices. The identified factors, competitive strategy and managerial efficiency, capture distinct dimensions that underscore the importance of these practices for enhancing competitiveness and efficiency within organizations.

Based on the results of the exploratory factor analysis (EFA) conducted on the disadvantages in managerial accounting practices utilization scale (7 items), the following findings emerged: The factor analysis identified two distinct factors underlying the scale, factors that will further be referred to as resource constraints and organizational constraints (

Table 5. Factor loadings for disadvantages in managerial accounting practices utilization scale.

Factor Loadings
	Factor 1 Human Resources	Factor 2 Limited Resources	Uniqueness
item16.5	0.951		0.162
item16.4	0.882		0.173
item16.7	0.594		0.407
item16.6	0.427		0.487
item16.1		0.964	0.203
item16.3		0.696	0.244
item16.2		0.693	0.312

Note. Applied rotation method is promax.

).

Factor 1, human resources, had the greatest loading (0.951) for item 16.5, the lack of human resources in the implementation of management accounting techniques, showing a significant link with this factor. This shows that one of the main obstacles to the use of management accounting methods, according to the respondents, is a shortage of human resources. Similarly, items 16.4 and 16.7 also demonstrated high loadings on Factor 1, implying significant contributions to human-resources-related constraints.

Conversely, Factor 2, limited resources, was predominantly influenced by item 16.1, lack of interest from managers/administrators, which displayed the highest loading (0.964). This suggests that respondents perceive a lack of interest from managers as a critical organizational constraint in the utilization of managerial accounting practices. Items 16.3 and 16.2 also showed substantial loadings on Factor 2, indicating their importance in contributing to limited-resources-related constraints. The unrotated solution showed eigenvalues of 0.623 for Factor 2 and 4.882 for Factor 1, showing that Factor 1 accounts for a significantly larger portion of the variance than Factor 2. Following rotation, Factor 2 explained 34.1% of the variation, and Factor 1 explained 37.5%. This shows that although both aspects are important, the first factor—human resources—contributes more to our understanding of the limitations in the use of management accounting procedures. The found factors’ validity was further strengthened by the fit indices. The root mean square error of approximation (RMSEA) of 0.053 suggests that the model and the data match each other well. The model appears to be well-fitting, as shown by the Tucker–Lewis Index (TLI) and comparative fit index (CFI), which are 0.989 and 0.996, respectively. Furthermore, the model was parsimonious, as indicated by the Bayesian information criterion (BIC) of −30.944. In conclusion, the EFA results provide a clear and robust structure for understanding the constraints in utilizing managerial accounting practices (

Table 6. Additional fit indices for disadvantages for managerial accounting practices utilization scale.

Additional Fit Indices
RMSEA	RMSEA 90% Confidence	SRMR	TLI	CFI	BIC
0.053	0.016–0.088	0.013	0.989	0.996	−30.944

).

The identified factors, human resources and limited resources, capture essential dimensions that underscore the challenges organizations face in implementing these practices.

In addition to exploratory factor analysis (EFA), we employed confirmatory factor analysis (CFA) to confirm the dual-factor structure of both scales used in our study. The CFA results for the advantages scale showed good model fit with a Tucker–Lewis Index (TLI) of 0.938, comparative fit index (CFI) of 0.958, root mean square error of approximation (RMSEA) of 0.115, and standardized root mean square residual (SRMR) of 0.031. Similarly, the CFA results for the disadvantages scale also demonstrated good model fit with a TLI of 0.963, CFI of 0.977, RMSEA of 0.097, and SRMR of 0.032. These indices confirm the robustness and validity of the dual-factor structure for both scales.

4.2. Correlation Analysis

To confirm the suitability of using Pearson correlation analysis, we assessed the normality of the data using the Shapiro–Wilk test and evaluated skewness and kurtosis values. The results demonstrated that the data were approximately normally distributed, justifying the use of Pearson’s correlation for analyzing the relationships between variables.

The Pearson’s correlation analysis reveals several statistically significant relationships between the importance of digital technology and various factors identified in our exploratory factor analyses.

Table 7. Correlation analysis.

Pearson’s Correlations
Variables	1	2	3	4	5
1. item 7. Digital Tech importance	—
	—
2. F1 Competitive strategy	0.134 **	—
	0.007	—
3. F2 Managerial efficiency	0.130 **	0.790 ***	—
	0.009	<0.001	—
4. F2 Human resources	−0.166 ***	0.243 ***	0.240 ***	—
	<0.001	<0.001	<0.001	—
5. F1 Limited resources	−0.136 **	0.250 ***	0.233 ***	0.776 ***	—
	0.006	<0.001	<0.001	<0.001	—

** p < 0.01, *** p < 0.001.

presents the correlation coefficients obtained.

The significance of digital technology and competitive strategy have a positive link (r = 0.134, p = 0.007), according to the results (Factor 1). This shows that companies are more inclined to focus competitive tactics and possibly use technical improvements to acquire a competitive edge in the market, as they view digital technology as increasingly important.

The results of the research indicate that managerial effectiveness and the relevance of digital technology have a positive association (r = 0.130, p < 0.001) (Factor 2). This suggests that companies that put a high priority on digital technology also frequently concentrate on increasing management effectiveness. It suggests that the use of digital tools and systems may be crucial in simplifying management procedures and facilitating the organization’s ability to allocate resources and make decisions more effectively.

Moreover, there exists a small but negative association between the importance of digital technology and issues pertaining to human resources (Factor 1) and restricted resources (Factor 2). In particular, there is a negative association (r = −0.166, p < 0.001) between the significance of digital technology and human resources, indicating that firms may feel less constraint about human resources as they emphasize digital technology. The significance of digital technology and few resources also show a negative association (r = −0.136, p = 0.006), suggesting that businesses who invest in digital technology may feel less constrained by resource shortages.

These results are consistent with theories of technological determinism [64], which postulate that organizational strategy and change are driven by technical developments. In particular, the notion that companies strategically use digital technologies to improve their competitive positions and operational performance is supported by the positive correlations found between the relevance of digital technology and competitive strategy as well as managerial effectiveness. Furthermore, the inverse relationships with human- and resource-related variables underscore the capacity of digital technologies to alleviate conventional resource limitations, providing avenues for enterprises to attain heightened efficacy and competitiveness via digital transformation campaigns. All things considered, these observations highlight how crucial digital technology is in influencing organizational plans and practices in the modern corporate environment.

4.3. Mediation Analysis

The sequential mediation analysis results indicate a complex association between various factors influencing managerial advancement (managerial efficiency). Initially, the analysis demonstrates a significant total effect of human resources constraints on managerial efficiency (B = 0.2060, p < 0.001), suggesting that disadvantages regarding the lack of qualified human resources (human resources constraints) negatively impacts managerial advancement. However, when considering the direct effect alone, the relationship becomes non-significant (B = 0.0512, p = 0.2215), indicating that there is no direct influence of disadvantages regarding the lack of qualified human resources (human resources constraints) on managerial efficiency after accounting for mediators (

Table 8. Sequential mediation analysis results.

Effect Type	Effect	se	t	p	LLCI	ULCI
Total	0.2060	0.0414	4.9701	0.0000	0.1245	0.2874
Direct	0.0512	0.0418	1.2245	0.2215	−0.0310	0.1335
Indirect (human resources constraints -> limited resources -> managerial efficiency)	−0.0007	0.0314	−0.0629	0.0604	−0.0007	0.0004
Indirect (human resources constraints -> digital tech importance -> managerial efficiency)	−0.0048	0.0054	−0.0174	0.0040	−0.0004	0.0003
Indirect (human resources constraints -> competitive strategy -> managerial efficiency)	0.0992	0.0495	0.0053	0.1984	0.0053	0.0012
Indirect (human resources constraints -> limited resources -> digital tech importance -> managerial efficiency)	−0.0004	0.0024	−0.0061	0.0043	−0.0004	0.0002

Note. Total, direct, and indirect effects of X on Y are reported. Total effect represents the overall impact of X on Y, while direct effect indicates the direct influence of X on Y. Indirect effects are decomposed into various pathways, denoted by their mediation sequence. Standard errors (se), t-values, p-values (p), and 95% confidence intervals (LLCI = Lower Limit Confidence Interval, ULCI = Upper Limit Confidence Interval) are provided for each effect.

).

Further exploration through sequential mediation reveals complex relationships. The analysis suggests that human resources constraints exert an indirect effect on managerial efficiency through a series of sequential mediators. Initially, human resources constraints influence limited resources with a coefficient of 0.1547, which subsequently impacts digital tech importance, with a coefficient of 0.0992. This, in turn, affects competitive strategy advancement, with a coefficient of 0.0812. Finally, competitive strategy advancement significantly influences managerial efficiency, highlighting the role of digital technology in mediating the relationship between human resources constraints and managerial advancement.

This sequential mediation pathway highlights the potential significance of digital technology as a mediator between the disadvantages of a lack of qualified human resources, limited resources, and managerial efficacy in terms of managerial accounting practices, ultimately affecting managerial advancement (Figure 1).

4.4. Hypothesis Validation

The correlation analysis shows a positive correlation (r = 0.134, p = 0.007) between the importance of digital technology and competitive strategy in managerial accounting practices, confirming H1. This finding validates our hypothesis that digital technology plays a crucial role in enhancing competitive strategies within organizations.

The results also indicate a positive correlation (r = 0.130, p < 0.001) between digital technology importance and managerial efficiency, supporting H2. This suggests that organizations that prioritize digital technology adoption are likely to see significant improvements in managerial efficiency, further emphasizing the strategic value of digital advancements.

H3, which proposed a negative correlation between human resources constraints and the importance of digital technology in managerial accounting practices, was validated. The correlation analysis showed a significant negative relationship (r = −0.166, p < 0.001), supporting H3. This indicates that as human resources constraints increase, the perceived importance of digital technology decreases.

H4, which hypothesized a negative correlation between limited resources constraints and the importance of digital technology in managerial accounting practices, was also validated. The analysis showed a significant negative correlation (r = −0.136, p = 0.006), supporting the idea that resource limitations can hinder the strategic benefits of digital technology adoption.

H5 examined the sequential mediation of limited resources and digital technology importance on the relationship between human resources constraints and managerial efficiency. This hypothesis was validated based on the sequential mediation pathway involving these constraints. The analysis demonstrated that human resources constraints impact limited resources, which in turn influence the importance of digital technology, ultimately affecting managerial efficiency (B = 0.0812, p < 0.001). This finding supports H5, highlighting the complex intermediary steps involved and the significant role of digital technology in improving managerial efficiency.

In conclusion, our hypothesis testing reveals that H1, H2, H3, H4, and H5 are validated based on the statistical analyses. These results underscore the significant role of digital technology in enhancing competitive strategy and managerial efficiency, while also highlighting the moderating effects of human and limited resources constraints within organizations.

The findings resonate with technology determinism, which posits that technological advancements and their integration within organizational practices are not merely influenced by technical feasibility or economic factors alone, but also by social and organizational contexts. According to this theory, the adoption and utilization of digital technologies in managerial practices are shaped by broader organizational dynamics, including internal constraints such as human resources and limited resources dissatisfaction. Specifically, the results highlight how human resources constraints indirectly influence managerial efficiency through pathways involving perceptions of limited resources and the importance of digital technology. This underscores that organizational decisions regarding technological integration are complex and multifaceted, influenced by internal perceptions and strategic considerations beyond technical capabilities alone. Furthermore, the findings emphasize the pivotal role of competitive strategy advancement as a mediator in this process. By acknowledging the mediating role of competitive strategy advancement, this study underscores that managerial efficiency improvements linked to digital technology are not automatic but are intricately linked to strategic choices and organizational priorities.

5. Discussion

The findings of the present study significantly contribute to the existing literature on managerial accounting practices utilization, constraints, and their implications for organizational performance. Our exploratory factor analysis (EFA) identified distinct dimensions underlying the arguments for the managerial accounting practices utilization scale and the constraints of the managerial accounting practices utilization scale. These factors—Competitive Strategy and Managerial Efficiency, as well as Human Resources and Limited Resources—provide valuable insights into the multifaceted nature of managerial accounting practices and the challenges organizations face in their implementation.

The validation of our hypotheses provides significant insights into the impact of digital technologies on managerial accounting practices and their implications for organizational performance.

The positive correlation (r = 0.134, p = 0.007) between the importance of digital technology and competitive strategy supports the hypothesis that digital technologies are integral to enhancing competitive strategies within organizations. This finding aligns with prior research emphasizing the strategic role of digital technologies in gaining competitive advantages. For instance, Bharadwaj [65] highlighted that IT capabilities are crucial for creating strategic value and achieving competitive advantage in organizations. Similarly, Porter and Millar [66] discussed how information technology transforms competitive forces and industry structures, suggesting that digital technologies can redefine competitive strategy.

The positive correlation (r = 0.130, p < 0.001) between digital technology importance and managerial efficiency underscores the potential of digital technologies to enhance managerial efficiency. This is consistent with studies indicating that digital technology adoption improves organizational processes and decision-making efficiency. Davenport and Harris [67] demonstrated that analytics and digital tools contribute significantly to managerial decision-making efficiency. Likewise, Mithas and collaborators [68] found that IT investments are directly linked to improvements in organizational efficiency and performance.

The significant negative relationship (r = −0.166, p < 0.001) between human resources constraints and the importance of digital technology suggests that as human resources constraints increase, the perceived importance of digital technology decreases. This aligns with findings by Aral and Weill [69], who argued that the lack of skilled personnel can hinder the effective utilization of digital technologies. Similarly, Westerman and collaborators [70] pointed out that human resource constraints can limit the full potential of digital transformation initiatives.

The negative correlation (r = −0.136, p = 0.006) between limited resources constraints and the importance of digital technology supports the hypothesis that resource limitations can hinder the strategic benefits of digital technology adoption. This is corroborated by studies that emphasize the challenges of resource constraints in implementing digital technologies. For example, Melville, Kraemer, and Gurbaxani [71] discussed how limited resources can impede IT implementation and integration within firms. Moreover, Brynjolfsson and Hitt [72] highlighted that sufficient resources are necessary to leverage IT for competitive advantage effectively.

The validation of H5 through sequential mediation analysis (B = 0.0812, p < 0.001) indicates that human resources constraints impact limited resources, which in turn influence the importance of digital technology, ultimately affecting managerial efficiency. This finding aligns with the theoretical perspectives of technology determinism and the resource-based view. Venkatesh and collaborators [73] emphasized the role of organizational resources in the successful adoption of new technologies. Furthermore, Paulraj [74] discussed how internal resources and capabilities are critical for sustaining competitive advantage, which is echoed in our findings, which highlight the complex interactions between resource constraints and digital technology importance in driving managerial efficiency.

Our hypothesis testing reveals that H1, H2, H3, H4, and H5 are validated based on the statistical analyses. These results underscore the significant role of digital technology in enhancing competitive strategy and managerial efficiency, while also highlighting the moderating effects of human and limited resources constraints within organizations.

The theoretical implications of our study are supported by prior research findings. For instance, scholars [10] discussed the performance effects of digital technology adoption, emphasizing its role in innovation and competitiveness. Researchers [15,16] explored the impacts of digital technologies on firm performance and human resource management, respectively, further corroborating our findings on the transformative potential of digital technologies in organizational contexts.

In conclusion, our study advances the understanding of managerial accounting practices utilization and underscores their implications for organizational success. By identifying critical factors and their interrelations, organizations can develop targeted strategies to address constraints and leverage opportunities for improvement. These findings underscore the transformative potential of digital technologies in driving organizational innovation and competitiveness, aligning with prior research emphasizing their strategic role in organizational advancement [17,75].

Despite the fact that our research is based in Romania, its conclusions apply to other nations with comparable accounting practices and economic conditions. Numerous nations in eastern Europe, including Poland, Hungary, and Bulgaria, have similar accounting frameworks and deal with similar difficulties when incorporating digital technology into their managerial accounting procedures. We can conclude that adopting digital technology can similarly improve management effectiveness and competitive strategy while also addressing resource and human constraints by extrapolating our results to these nations.

These insights can also be helpful for non-eastern European nations that use comparable accounting standards and deal with comparable resource constraints. For example, our results may be especially pertinent to countries in the Balkan region or those shifting from centralized to market economies. Organizations dealing with comparable economic and technical environments are likely to find resonance in the strategic role that digital technology plays in enhancing organizational performance. As such, our work lays the groundwork for future investigations and real-world implementations in these areas, which may result in improved managerial accounting procedures and organizational outcomes more generally.

The exploration of Big Data and AI’s impact on management accounting, as discussed in this paper, highlights significant shifts in both job profiles and required skill-sets within the profession. The integration of these technologies is not merely an enhancement of existing practices but represents a fundamental transformation in how management accountants operate. The findings of this paper suggest that management accountants must adapt to a rapidly changing environment characterized by technological advancements. Practitioners should focus on developing skills in data analytics and technology integration to meet the evolving demands of their roles

6. Conclusions

This study provides several key contributions to the field of managerial accounting. First, it enhances the understanding of how competitive strategy, managerial efficiency, and resource constraints impact the implementation and effectiveness of managerial accounting practices. By integrating digital technology into this framework, we have demonstrated its significant role in mediating the relationships between resource constraints and managerial efficiency. Our findings offer valuable insights for practitioners and researchers alike. For practitioners, the results highlight the importance of adopting digital technologies to mitigate the effects of resource constraints and enhance managerial efficiency.

Nonetheless, it is essential to recognize a number of limitations. Because cross-sectional data are used, it is difficult to determine causal linkages; therefore, more longitudinal studies are required to thoroughly investigate temporal dynamics. Because our data are cross-sectional, we are only able to provide a momentary picture of the condition of management accounting procedures and their effects, which may vary over time. This constraint has an impact on how our results should be interpreted because it raises the possibility that short-term variables rather than consistent, long-term patterns may be influencing the associations we have seen. In addition to enabling us to track the development and long-term effects of digital technology adoption on management accounting procedures, longitudinal research would offer a more thorough understanding of these dynamics.

Furthermore, using self-reported measurements raises the possibility of biases and measurement mistakes, emphasizing the necessity of additional approaches for validation. Self-reporting might cause respondents to overstate positive behaviors or underreport negative ones, a phenomenon known as social desirability bias, which can impair the data’s veracity. This drawback emphasizes how crucial it is to confirm our conclusions using independent data sources, like company records or assessments from outside parties, in order to improve the validity and dependability of the findings.

In order to further our comprehension of the fundamental mechanisms and boundary circumstances influencing the observed effects, future research projects ought to investigate supplementary mediators and moderators. One aspect of this research is examining the potential moderating effects of digital technology on management accounting procedures within various organizational contexts, such as industry type or organizational size. Future research endeavors that tackle these constraints may yield a more all-encompassing and refined comprehension of the variables propelling the acceptance and efficiency of digital technologies in the field of managerial accounting.

Overall, our study emphasizes the vital relevance of management accounting procedures in modern organizational contexts and identifies areas for future research to increase understanding in this critical field. By addressing these research gaps, we may help to design more effective treatments and strategies for improving organizational performance and competitiveness in a fast-changing global environment.

Theoretical implications highlight the contribution of this study to existing literature by integrating diverse factors that influence managerial accounting practices utilization. This study underscores the relevance of resource-based views and technology determinism theories in explaining organizational dynamics and performance outcomes. This theoretical framework provides a foundation for future research to explore complex interactions and causal mechanisms within organizational contexts.

Several promising avenues for future research arise from this study. First, future investigations could delve into the impact of specific types of digital technologies—such as artificial intelligence, blockchain, or advanced analytics—on managerial accounting practices. Understanding how different technologies influence various dimensions of managerial efficiency and accounting practices could provide more detailed insights than our single-item measure. Second, exploring additional variables that may affect these relationships, such as organizational culture, managerial attitudes towards technology, and the level of digital maturity within organizations, could further discover the factors that enhance or hinder the adoption and effectiveness of digital tools in accounting. Additionally, longitudinal studies could track how changes in digital technology over time influence managerial accounting practices and efficiency, offering a dynamic perspective on the evolving role of technology in accounting.

Expanding the research to include diverse industry sectors and geographical regions would also enhance the generalizability of the findings. For example, comparing the effects of digital technology on managerial accounting practices in different industries could reveal industry-specific challenges and benefits. Also, incorporating qualitative research methods, such as in-depth interviews or case studies, might provide richer insights into the practical experiences and challenges organizations face when integrating digital technologies into their accounting practices.