Omar Fareed Shaqqour
The study aims to measure the impact of vertical and horizontal integration between strategic management accounting (SMA) and operational and strategic decision-making on reducing financial failures in the companies listed in the Amman Stock Exchange (ASE). Vertical integration is represented in achieving integration between SMA and strategic decision-making, whereas horizontal integration lies in achieving integration between SMA, and operational decision-making. Financial failure is measured by Kida model, while the vertical and horizontal integration between SMA, and operational and strategic decision-making is measured by a questionnaire which was distributed among a sample of 50 industrial companies randomly chosen. The study targets for its unit of analysis the company`s general manager, production manager and financial manager among whom the questionnaire is distributed. One hundred and fifteen questionnaires (115) valid for analysis have been recovered, a percent recovery of approximately (76.7%). The results of the study show that the adoption of vertical and horizontal integration between SMA and operational and strategic decision-making on reducing financial failures in the companies listed in the ASE is found in averaged levels, which may result in reducing the opportunity of achieving the benefits resulting from its application. The study also concludes that there is a positive impact of vertical and horizontal integration between SMA and operational and strategic decision-making on reducing financial failure of industrial companies listed in the ASE. The study recommends that Jordanian companies should place more interest in adopting more developed accounting methods and tools which shall boost vertical and horizontal integration between SMA and operational and strategic decision-making should they be interested in reducing financial failure and improving levels of performance.