Material Flow Cost Accounting (MFCA) enablers and barriers: the case of a Malaysian small and medium-sized enterprise (SME)

Sulong, Farizah and Sulaiman, Maliah and Mohd Alwi, Norhayati (2015) Material Flow Cost Accounting (MFCA) enablers and barriers: the case of a Malaysian small and medium-sized enterprise (SME). Journal of Cleaner Production, 108 (Part B). pp. 1365-1374. ISSN 0959-6526

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Abstract

The introduction of Material Flow Cost Accounting (MFCA) to five companies under the Malaysia Productivity Corporation (MPC) project has shown that these companies have indeed achieved simultaneous benefits of economic gains and environmental sustainability. This paper highlights the experience of one of the companies, emphasising how one can leverage enablers and also overcome barriers to implementing MFCA in a small and medium-sized enterprise (SME) in Malaysia. Driven by the diffusion of innovation (DOI) theory, the case company found most of its enablers within MFCA's own attributes. Additionally other factors such as the team composition, interpersonal communication, and efforts of the change agents were instrumental in the success of the MFCA implementation. However, the company was also constrained by its suppliers. More importantly, it is envisaged that a potential hurdle for MFCA advancement is when performance management issues are not addressed by higher management. Drawing upon the company's experience and the theoretical literature, other barriers that may also be encountered by SMEs in Malaysia are also discussed. These include for example, overcoming the traditionalist view held by most SMEs, persevering the implementation processes on their own without the direct assistance from MPC and several others.

Item Type:	Article (Journal)
Additional Information:	1445/50809
Uncontrolled Keywords:	material flow cost accounting (MFCA), SME, ISO 14051, qualitative research, Malaysia
Subjects:	H Social Sciences > HJ Public Finance > HJ9701 Public accounting
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	PROF MALIAH SULAIMAN
Date Deposited:	30 May 2016 14:44
Last Modified:	20 Sep 2017 16:06
URI:	http://irep.iium.edu.my/id/eprint/50809

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