Title: Application of management accounting techniques in Indian small and medium hospitality enterprises: an empirical study
Authors: Mohinder Chand, Ashish Dahiya
Addresses: Department of Tourism and Hotel Management, Kurukshetra University, Kurukshetra, Haryana 136 119, India. ' Centre for Mountain Tourism and Hospitality Studies, HNB Garhwal University, Srinagar Garhwal Uttarkhand, India
Abstract: Indian small and medium size hospitality enterprises (SMHEs) are an important factor for the socio-economic development in terms of GDP and employment generation in the country. However, economic reforms initiated since 1990s have created both opportunities and threats for the local entrepreneurs. Many multi-level transformations were needed, so they will be able to adapt in the new era. In most cases these transformations had several difficulties to be accepted by Indian SMHEs. The aim of this paper is to investigate and report the importance and usage of management accounting techniques in Indian SMHEs, and to identify the major barriers that are experienced by Indian SMEs in the hospitality industry in their efforts to implement management accounting techniques in their businesses. Empirical data were collected through a structured questionnaire over 429 Indian hospitality small and medium enterprises. The findings suggested that management accounting techniques have a great impact on different firm|s aspects especially on cost reduction and quality improvement. Further results indicate the major obstacles for application of management accounting techniques in Indian SMHEs relating to ownership and size characteristics and extensive high cost.
Keywords: management accounting; hospitality industry; India; tourist industry; tourism; hotels; socio-economic development; gross domestic product; GDP; employment generation; job creation; economic reform; multi-level transformation; cost reduction; quality improvement; business ownership; firm size; small and medium-sized enterprises; hospitality SMEs; entrepreneurship.
International Journal of Entrepreneurship and Small Business, 2010 Vol.11 No.1, pp.25 - 41
Published online: 03 Aug 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article