Entreprenurial orientation, strategic management accounting practices, innovation and firm performance: craft industry perspective / Nor Azlina Ab. Rahman, Aliza Ramli

Globalization in new era changes
business environment in various dimensions.
Organizational integration factor, business strategy
and innovation in technology were slowly becoming
the major strategic issues which have significant
impacts on organizations. The purpose of this paper
is to scrutinize the issues coming in the way of small
medium enterprises (SMEs) and firm performances
within the craft industry development drawn on to
the influence factors that enhances its performance,
and to further provide an a framework to examine
SMEs performances. Craft industry is a heritage
industry which is considered as one of the major
contributors in the manufacturing sector and also to
the development of SMEs in most countries.However,
it’s potential is always underestimated. Relevant
literature on entrepreneur, strategic management
accounting practices, innovation and firm
performance in SMEs within the craft industry are
reviewed.In this paper, a framework of firm
performance and factors affecting it is proposed that
relies on resource-based view theory. A framework is
developed to explore the premise for the research.
Based on the suggested framework, entrepreneurial
orientation, strategic management accounting and
innovation are identified as factors affecting firm
performance while the firm performance considers
both financial and non-financial perspectives. The
proposed framework allows the identification of the
triggers driving SMEs performances and the capture
of a holistic firm performance within the craft
industry.