The Role of Organizational Environment Quality in Enhancing the Effectiveness of Strategic Management Accounting Practices in Libyan Commercial Banks: A Case Study of Wahda Bank

Abstract

This study aimed to examine the role of organizational environment quality in enhancing the effectiveness of strategic management accounting practices in Libyan commercial banks, with Wahda Bank as a case study. Organizational environment quality was examined through five dimensions: top management support, organizational culture, organizational communication, organizational flexibility, and organizational learning. The effectiveness of strategic management accounting practices was assessed through strategic information quality, strategic decision support, organizational performance improvement, and competitive advantage enhancement. The study adopted a descriptive-analytical approach and a case study strategy, with a sample of 120 respondents drawn from employees involved in accounting, management, planning, and decision-making functions.

The findings indicated that organizational environment quality was at a moderate level tending toward improvement, with a mean score of 3.34 and a relative weight of 66.8%, while the effectiveness of strategic management accounting practices recorded a mean of 3.33 and a relative weight of 66.6%. The results also revealed a moderate positive relationship between organizational environment quality and strategic management accounting effectiveness (r = 0.557). The regression model showed that organizational environment quality explained approximately 31% of the variance in the effectiveness of strategic management accounting practices. Top management support emerged as the strongest influential dimension, followed by organizational communication, organizational learning, and organizational culture, whereas organizational flexibility did not demonstrate a statistically significant independent effect. The study concludes that improving the effectiveness of strategic management accounting in Libyan commercial banks requires more than adopting accounting techniques; it requires a supportive organizational context characterized by strong managerial commitment, effective communication, continuous learning, and greater organizational adaptability.