The Role of Strategic Management Accounting in Achieving Competitive Advantage: A Case Study of Sumal Foods Limited, Oluyole, Ibadan

This study examined the role of Strategic Management Accounting (SMA) in achieving competitive advantage at Sumal Foods Limited, Oluyole, Ibadan. The study adopted a descriptive and explanatory research design and used a census approach to obtain 35 valid responses. Data were analysed using descriptive statistics and regression analysis. Findings showed high adoption of activity-based costing (mean = 4.1) and target costing (mean = 4.0), moderate adoption of benchmarking and performance measurement (mean = 3.6 each), and low adoption of customer profitability analysis and competitor accounting (mean = 3.2 each). Regression results showed that SMA adoption significantly influenced competitive advantage (R² = 0.42, p < 0.05) and environmental responsiveness (R² = 0.37, p < 0.05). Also, 74% of respondents linked SMA with cost leadership, 69% with differentiation, 76% with improved management of input-cost fluctuations, and 70% with responsiveness to changing consumer preferences. Major constraints were high implementation cost, shortage of trained personnel, weak IT infrastructure and limited top-management commitment. The study concludes that SMA is an important strategic capability for competitiveness and environmental responsiveness. It recommends strengthening customer and competitor accounting, phasing digital investments, and improving staff training and management support.