Title: Factors affecting the use of cost management system information and financial performance in Vietnam manufacturers

Authors: Vo Tan Liem; Nguyen Ngoc Hien

Addresses: Faculty of Economics and Management, Van Hien University, 665-667-669 Dien Bien Phu Street, Ward 1, District 3, Ho Chi Minh City., Vietnam ' Faculty of Business Administration, Industrial University of Ho Chi Minh City, 12 Nguyen Van Bao St., Ward 4, Go Vap Dist., HCMC, Vietnam

Abstract: The current research established and analysed the influence of the top managers' characteristics (only consider the CEO) on using information from the cost management system (CMS) to make strategic decisions, which is based on upper echelon theory (UET). Additionally, the current research takes into account the moderating influence of environmental dynamism in some relationships. Survey participants are CEOs in medium and large manufacturing enterprises operating in Vietnam. All relationships are statistically significant (except the impact of aging on financial performance). These results suggest that, under environmental dynamism, a good fit between the characteristics of CEOs and the CMS contributes to improving the financial performance of Vietnamese manufacturing enterprises. This result will assist top managers in enhancing the financial performance of the Vietnam manufacturers through the design of an effective cost management system. When realising the significant benefits that a cost management system brings, top managers will provide more support to cost management system designers, thereby enhancing the competitiveness of manufacturing enterprises in Vietnam.

Keywords: age; managerial risk-taking propensity; cost management system; CMS; financial performance; environmental dynamism; Vietnam; upper echelon theory; UET.

DOI: 10.1504/IJRM.2025.147364

International Journal of Revenue Management, 2025 Vol.15 No.1/2, pp.78 - 99

Received: 21 Jul 2024
Accepted: 14 Apr 2025
Published online: 14 Jul 2025 *