A study on the role of accounting information in business strategic planning of Malaysian hotel industry / Raziah Bi Mohamed Sadique

This research looked into the role of accounting information in assisting the formulation of strategic business planning. In particular this research tries to understand how the Malaysian Hotel Industry utilizes the accounting information when formulating its business strategy. The issue of surviving in the new and competitive business environment was the main force that has increased the need for strategic planning. The Malaysian economic downturn has been the survival test for all business organizations. Those who plan their business strategy properly managed to survive during the crisis. The crisis also portrays that many hotels face problems in maintaining their operation. Thus, this research was carried out to look into the role of accounting information in business strategic planning and how this affects the company's financial performance. Using selected accounting and non-accounting information as the variables, respondents were asked to identify one of the three business strategies being adopted by their hotel. Once the strategic type was isolated, the current study identified the accounting information system used by the hotels when formulating their strategy. The questionnaire survey method was adopted in the process of gathering data. Performance indicators such as return on capital (ROC), return on asset (ROA) and growth of sales were used in this research. This research also looked into the potential relationship between accounting information, strategy adopted and financial performance.