Adoption of Seventeen SMA Tools in the Saudi Sectors: A Contemporary Analysis

Abstract

This study investigates the adoption of seventeen strategic management accounting tools (SMAT) across Saudi service sector organizations, integrating technological, organizational, and strategic determinants within a unified TOE–TAM–SMAT–Digital Capability framework. Using a quantitative, cross-sectional design, data were collected from accountants and managers representing diverse service industries, enabling a comprehensive assessment of adoption patterns and the influence of demographic and organizational characteristics. The findings reveal that competitor-oriented tools—particularly benchmarking and competitive position monitoring—are the most widely adopted, reflecting the sector’s emphasis on external market intelligence and strategic positioning. Customer oriented tools exhibit moderate adoption, with strategic pricing and customer profitability analysis leading the category, while advanced customer analytics remain underutilized. Cost management tools show selective but meaningful uptake, with value chain costing and life cycle costing demonstrating the highest usage. Demographic variables such as company size, service type, listing status, and managerial experience exert minimal influence on adoption, indicating that structural characteristics play a limited role. Instead, digital capability, SMAT orientation, and market position emerge as the primary drivers shaping adoption pathways. The moderating effect of market position strengthens the relationship between digital capability and adoption, while SMAT orientation mediates the influence of digital capability on cloud accounting usage. Reliability and validity analyses confirm the robustness of the measurement instrument. Overall, the study provides empirical evidence that SMAT adoption in the Saudi service sector is driven by strategic imperatives and digital readiness rather than demographic factors. The findings highlight the need for enhanced digital and analytical capabilities to support the adoption of advanced SMAT, particularly those requiring long term customer insight and sophisticated cost analytics. The study contributes to the understanding of SMA in digitally transforming service economies and offers practical implications for managers, policymakers, and educators seeking to strengthen strategic decision making and performance measurement practices.