QUESTIONNAIRES APPLICATION

Published Online: November 15, 2024

https://doi.org/10.31893/multirev.2025121

The applicability of lean accounting in enterprises:

The case of pulp and paper manufacturing
enterprises in Vietnam
Pham Huy Hunga
a
Hanoi University of Natural Resources and Environment, Vietnam.

Abstract This study investigates the factors affecting the applicability of lean accounting in Vietnam's pulp and paper
manufacturing enterprises. The data were surveyed from 298 experts at 145 pulp and paper manufacturing enterprises in
Vietnam. Using the structural equation model (PLS-SEM), the study tested 7 hypotheses. The findings suggest that
employee knowledge and skills, senior management support, and the availability of lean accounting software positively
impact the applicability of lean accounting, whereas the current accounting system and complexity of the manufacturing
process negatively impact it. Surprisingly, competitive pressure and customer demand for cost-effective products did not
have a significant effect. These results highlight the priority of internal organizational factors over external market
pressures in driving lean accounting implementation in this context. The study contributes to contingency theory in
management accounting and provides practical insights for Vietnamese enterprises, emphasizing the need to develop
internal capacity, ensure management support, and invest in appropriate technology. This study challenges assumptions
about the drivers of accounting innovation in emerging markets and emphasizes the importance of a holistic approach to
lean accounting implementation. These findings provide the foundation to develop targeted strategies in similar contexts
and guide future research directions in the field.
Keywords: lean accounting, paper manufacturing enterprise, Vietnam

1. Introduction
Lean accounting is a modern management accounting approach that aligns with lean manufacturing principles, aiming
to provide more relevant and timely financial information while eliminating waste in accounting processes. Originating from
Toyota's lean production system, lean accounting has gained significant attention in the manufacturing sector over the past
few decades (Maskell & Baggaley, 2006).
The core principles of lean accounting include value stream costing, simplified financial reporting, and a focus on
operational metrics that support continuous improvement (Fullerton et al., 2013). Unlike traditional cost accounting
methods, lean accounting emphasizes real-time information, reduces the focus on standard cost variances, and increases
integration with operational processes (Kennedy & Widener, 2008).
Lean accounting seeks to overcome the limitations of traditional accounting systems, which often fail to capture the
true benefits of lean manufacturing initiatives. As Maskell & Kennedy (2007) argue, conventional accounting methods can
even hinder lean transformation by promoting nonlean behaviors and decision-making. In contrast, lean accounting aims to
support lean operational practices and provide more accurate insights into the financial impacts of lean improvements.
The implementation of lean accounting encompasses several key practices that revolutionize traditional accounting
approaches. Value stream costing, as described by Ruiz-de-Arbulo-Lopez et al. (2013), assigns costs directly to value streams,
offering a more holistic view of costs and profitability. Box score reporting, a visual management tool, combines operational,
financial, and capacity metrics to provide a comprehensive overview of organizational performance (Fullerton & Kennedy,
2009). Target costing, as outlined by Cooper & Slagmulder (1999), involves determining a product's target cost on the basis of
its anticipated selling price and desired profit margin and then designing the product to meet that cost. Visual performance
boards display key performance indicators (KPIs) in a simple, accessible format, facilitating rapid decision-making and
continuous improvement (Fullerton et al., 2014). Despite these innovative practices and their potential benefits, the adoption
of lean accounting has been relatively slow compared with the widespread implementation of lean manufacturing practices.
Fullerton et al. (2013) attributed this lag to various factors, including resistance to change, lack of knowledge and skills, and
the complexity of existing accounting systems, highlighting the challenges faced in transitioning to this more efficient
accounting approach.

Multidiscip. Rev. (2025) 8:e2025121 Accepted: November 11, 2024

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Vietnam's paper manufacturing industry has experienced significant growth in recent years, driven by increasing
domestic demand and export opportunities. The sector plays a crucial role in Vietnam's economy, contributing to industrial
output, employment, and export earnings (General Statistics Office of Vietnam, 2020). The industry is characterized by a mix
of state-owned enterprises, private companies, and foreign-invested firms. Major products include packaging paper, printing
and writing paper, and newsprints. The sector faces several challenges, including raw material supply, environmental
concerns, and the need for technological upgrades to improve efficiency and competitiveness (Vietnam Pulp and Paper
Association, 2019). In recent years, there has been a growing emphasis on sustainable practices and efficiency improvements
in Vietnam's paper manufacturing sector. This trend aligns well with lean principles, creating potential opportunities for the
application of lean accounting in industry (Tran & Tran, 2016; Hung, 2022).
While lean philosophy, lean manufacturing, and lean management have been known to many people and have been
applied to the paper manufacturing industry for a long time, lean accounting is still quite new and has hardly been applied in
paper manufacturing enterprises in Vietnam. Traditional accounting practices continue to dominate, potentially hindering the
full realization of the benefits of lean manufacturing and hindering accurate financial decision making (Nguyen et al., 2018;
Pham, 2022). Domestic works on lean accounting are quite modest in number, have not been deeply researched, and have
not provided specific solutions for the application of lean accounting in paper manufacturing enterprises, nor have they
studied the factors affecting the ability of these enterprises to apply lean accounting.
Therefore, this study was conducted to assess the influence of various factors on the applicability of lean accounting in
paper manufacturing enterprises in Vietnam. On the basis of the general objective, the specific objectives of this study include
the following:
(i) Identify key factors affecting the applicability of lean accounting in paper manufacturing enterprises.
(ii) Measuring the influence of factors on the applicability of lean accounting in paper manufacturing enterprises.
(iii) We propose recommendations to enhance the adoption and efficiency of lean accounting in Vietnam's
papermaking industry.
This study extends the existing body of knowledge on lean accounting by examining its application in the specific
context of Vietnam's paper manufacturing industry. This study contributes to the understanding of the factors influencing
lean accounting adoption in emerging economies and industry-specific settings. The findings of this study provide valuable
insights for paper manufacturing enterprises in Vietnam seeking to implement or improve their lean accounting practices. By
identifying key factors affecting implementation, this research can guide managers in developing strategies to overcome
barriers and enhance the effectiveness of lean accounting initiatives.
2. Literature Review
2.1. The concept and principles of lean accounting
Lean accounting is a management accounting approach that has emerged as a response to the limitations of
traditional accounting systems in supporting lean manufacturing environments. The concept of lean accounting is rooted in
broader lean philosophy, which originated from Toyota's production system and focuses on eliminating waste, improving
quality, and enhancing customer value (Womack & Jones, 1996). As manufacturing organizations increasingly adopted lean
principles, it became evident that conventional accounting methods were often at odds with lean objectives, leading to the
development of lean accounting (Maskell & Baggaley, 2006).
The fundamental concept of lean accounting is to align accounting practices with lean manufacturing principles,
providing more relevant and timely information for decision-making while eliminating waste in accounting processes.
According to Maskell & Kennedy (2007), lean accounting aims to support the lean transformation of an organization by
providing accurate, understandable, and timely information that enables better business decisions and drives lean
improvement.
One of the core principles of lean accounting is value stream focus. Unlike traditional cost accounting, which often
allocates costs to individual products or departments, lean accounting emphasizes the importance of understanding costs
and profitability at the value stream level (Fullerton et al., 2013). A value stream encompasses all the activities, both value-
added and nonvalue-added, required to bring a product or service from concept to customer (Rother & Shook, 2003). By
focusing on value streams, lean accounting provides a more holistic view of the organization's operations and helps identify
opportunities for improvement (Ruiz-de-Arbulo-Lopez et al., 2013).
Another key principle of lean accounting is the emphasis on operational performance measures rather than solely
financial metrics. Traditional accounting systems often rely heavily on financial measures, which can lag behind operational
changes and may not accurately reflect the impact of lean improvements. In contrast, lean accounting integrates operational,
financial, and capacity measures to provide a more comprehensive picture of organizational performance (Fullerton &
Kennedy, 2009). This approach, often implemented through tools such as box scores, enables managers to make more
informed decisions and track the progress of lean initiatives more effectively.

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Simplification is another crucial principle of lean accounting. Traditional accounting systems can be complex and time-
consuming, often requiring extensive data collection, allocation processes, and reconciliations. Lean accounting seeks to
simplify these processes by eliminating nonvalue-added activities and focusing on providing clear, relevant information
(Kennedy & Brewer, 2005). This simplification extends to financial reporting as well, with lean accounting advocating for
plain- language financial statements that are more accessible to nonfinancial managers and employees (Maskell & Baggaley,
2006).
The principle of continuous improvement, a cornerstone of lean philosophy, is also central to lean accounting. Lean
accounting systems are designed to support and encourage ongoing improvement efforts by providing timely feedback on
the financial impact of lean initiatives (Fullerton et al., 2014). This includes the use of target costing, a practice that involves
setting cost targets on the basis of market-driven prices and desired profitability and then working backward to design
products and processes that can meet these targets (Cooper & Slagmulder, 1999).
Visual management is another important principle in lean accounting. This involves the use of visual tools and displays
to communicate key information quickly and effectively. Visual performance boards, for example, display key performance
indicators (KPIs) in a simple, accessible format, facilitating rapid decision-making and supporting continuous improvement
efforts (Fullerton et al., 2014).
Lean accounting also emphasizes the importance of empowering employees at all levels of the organization. By
providing clear, relevant information and involving employees in performance measurement and improvement initiatives,
lean accounting supports the development of a lean culture throughout the organization (Maskell & Kennedy, 2007).
Another principle of lean accounting is its focus on customer value. Traditional accounting systems often emphasize
internal cost control, which may not always align with customer needs. Lean accounting, in contrast, encourages a deeper
understanding of what creates value for customers and how that value can be delivered most efficiently (Maskell & Baggaley,
2006).
The principle of waste elimination, which is central to lean manufacturing, is also applied in lean accounting. This
involves identifying and eliminating nonvalue-added activities in accounting processes, such as unnecessary reports,
redundant data entry, or overly complex allocation methods (Kennedy & Brewer, 2005).
Finally, lean accounting promotes a long-term perspective on business performance. While traditional accounting
often focuses on short-term financial results, lean accounting encourages the consideration of long-term value creation and
sustainable business practices (Fullerton et al., 2013).
In conclusion, lean accounting represents a significant shift from traditional accounting practices, offering a more
aligned approach to support lean manufacturing environments. Its principles of value stream focus, operational performance
measurement, simplification, continuous improvement, visual management, employee empowerment, customer value focus,
waste elimination, and long-term perspective provide a comprehensive framework for organizations seeking to enhance their
accounting practices in support of lean initiatives. As organizations continue to adopt lean principles, understanding and
implementing lean accounting becomes increasingly important for achieving the full benefits of lean transformation.
2.2. Lean accounting in manufacturing industries
The application of lean accounting in manufacturing industries has gained significant attention over the past few
decades as organizations have sought to align their accounting practices with lean manufacturing principles. The
manufacturing sector, which is the birthplace of lean philosophy, provides a rich context for exploring the implementation
and impact of lean accounting practices.
Lean manufacturing, with its focus on eliminating waste, improving quality, and enhancing customer value, has
transformed production processes in many industries. However, as noted by Johnson (2006), traditional accounting systems
often fail to capture the true benefits of lean initiatives and may even provide misleading information that hinders lean
transformation efforts. This misalignment between lean operations and conventional accounting practices has been a driving
force behind the development and adoption of lean accounting in manufacturing industries.
One of the key areas where lean accounting has made significant inroads in manufacturing is in the realm of cost
management. Traditional cost accounting methods, such as standard costing and variance analysis, often encourage nonlean
behaviors such as overproduction and excess inventory (Maskell & Baggaley, 2006). In contrast, lean accounting approaches,
particularly value stream costing, provide a more accurate picture of costs and profitability in a lean environment. Ruiz-de-
Arbulo-Lopez et al. (2013) demonstrated how value stream costing can be effectively applied in manufacturing settings,
offering insights into the true costs of products and processes while supporting lean improvement efforts.
The implementation of lean accounting in manufacturing industries has also led to significant changes in performance
measurement and reporting. Fullerton & Kennedy (2009) explored the use of box scores in lean manufacturing environments,
showing how this visual management tool can integrate operational, financial, and capacity metrics to provide a
comprehensive view of organizational performance. This approach allows manufacturers to move beyond traditional
financial metrics and gain a more holistic understanding of their operations, supporting better decision-making and
continuous improvement efforts.

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Target costing, another key practice in lean accounting, has found particular relevance in manufacturing industries.
Cooper & Slagmulder (1999) illustrated how Japanese manufacturers use target costing to drive cost reduction efforts
throughout the product development and manufacturing process. This approach aligns well with lean principles by focusing
on customer value and encouraging cross-functional collaboration to achieve cost targets.
The adoption of lean accounting in manufacturing has also been associated with changes in organizational culture and
management practices. Fullerton et al. (2013) reported that the implementation of lean accounting practices in
manufacturing firms was positively associated with the extent of lean manufacturing implementation and the level of
employee empowerment. This suggests that lean accounting not only supports lean operations but also contributes to the
development of a broader lean culture within manufacturing organizations.
However, the transition to lean accounting in manufacturing industries is not without challenges. Kennedy & Widener
(2008) identified several barriers to lean accounting adoption in manufacturing settings, including resistance to change, lack
of knowledge and skills, and the complexity of existing accounting systems. These challenges highlight the need for
comprehensive change management strategies and targeted training programs when implementing lean accounting in
manufacturing environments.
The impact of lean accounting on financial performance in manufacturing industries has been a subject of
considerable research. Fullerton et al. (2014) conducted a study of U.S. manufacturing firms and reported that the use of lean
accounting practices was positively associated with improved financial performance. Their research suggested that lean
accounting practices provide incremental benefits beyond those achieved through lean manufacturing alone, underscoring
the importance of aligning accounting systems with lean operational practices.
In the context of specific manufacturing sectors, lean accounting has shown promise in addressing industry-specific
challenges. For example, in the automotive industry, which has been at the forefront of lean manufacturing adoption, lean
accounting practices have helped companies better understand the costs and profitability of complex product lines and
supply chains (Åhlström & Karlsson, 1996). In the electronics manufacturing sector, where rapid technological change and
short product lifecycles are common, lean accounting has supported more agile decision-making and cost management
processes (Baines & Langfield-Smith, 2003).
The application of lean accounting in process manufacturing industries, such as chemical and paper production, has
presented unique challenges and opportunities. Unlike discrete manufacturing, where products are easily distinguishable and
countable, process manufacturing involves continuous or batch production of goods that are more difficult to separate into
distinct units. Maskell & Kennedy (2007) discussed how lean accounting principles can be adapted to these environments,
emphasizing the importance of focusing on value streams and using appropriate operational metrics to drive improvement.
The globalization of manufacturing has also influenced the adoption and evolution of lean accounting practices. As
manufacturing companies expand their operations across different countries and regions, they face the challenge of
implementing consistent lean accounting practices while adapting to local regulatory and cultural contexts. Chenhall (2003)
explored how management accounting practices, including lean accounting, are influenced by national culture and
institutional factors, highlighting the need for a nuanced approach to lean accounting implementation in global
manufacturing operations. Environmental sustainability has emerged as a critical concern in manufacturing industries,
and lean accounting has shown potential in supporting sustainable manufacturing practices. Rothenberg et al. (2001)
examined the relationship between lean production and environmental performance and suggested that lean
accounting practices can help manufacturers better understand and manage the environmental impacts of their
operations. By providing more accurate information on resource consumption and waste generation at the value stream
level, lean accounting can support decision-
making that aligns with both lean and sustainability objectives.
The advent of Industry 4.0 and smart manufacturing technologies has opened new avenues for the application of lean
accounting in manufacturing industries. As manufacturers increasingly adopt technologies such as the Internet of Things
(IoT), artificial intelligence, and big data analytics, there are opportunities to enhance lean accounting practices through real-
time data collection and analysis. Netland (2015) discussed how digital technologies can support lean practices, including lean
accounting, by providing more accurate and timely information for decision-making and continuous improvement.
2.3. The paper manufacturing sector in Vietnam
The paper manufacturing sector in Vietnam has experienced significant growth and transformation over the past few
decades, playing a crucial role in the country's industrial development and economic growth. This sector has evolved from a
small-scale, traditional industry to a modern, increasingly competitive sector that contributes substantially to Vietnam's
export earnings and domestic market supply.
According to the Vietnam Pulp and Paper Association (VPPA, 2020), the paper industry in Vietnam has experienced
remarkable growth, with an average annual growth rate of 11–12% in recent years. This growth has been driven by several
factors, including increasing domestic demand, increasing export opportunities, and government policies supporting
industrial development. Le & Nguyen (2019) noted that the rapid expansion of Vietnam's economy, coupled with

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urbanization and a

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growing middle class, has led to increased demand for various paper products, particularly packaging materials and printing
paper.
The structure of Vietnam's paper manufacturing sector is characterized by a mix of state-owned enterprises, private
companies, and foreign-invested firms. Tran (2018) observes that while state-owned enterprises have historically dominated
industry, recent years have seen a significant increase in private sector participation and foreign investment. This
diversification has contributed to increased competition and technological advancement within the sector.
In terms of production capacity, Pham et al. (2021) reported that Vietnam's paper manufacturing sector has
undergone substantial expansion. The total production capacity for paper and paperboard in Vietnam reached approximately
5 million tons per year in 2020, a significant increase from just over 1 million tons in 2010. This growth in capacity has been
accompanied by investments in modern machinery and technology, improving both productivity and product quality.
The product mix in Vietnam's paper manufacturing sector is diverse, encompassing various grades of paper and
paperboard. Nguyen & Le (2020) categorize the main products into four groups: packaging paper (including containerboard
and cartonboard), printing and writing paper, tissue paper, and specialty papers. Among these, packaging paper has shown
the most robust growth, driven by the expansion of Vietnam's manufacturing sector and the rise of e-commerce.
The raw material supply is a critical issue for Vietnam's paper manufacturing sector. Hoang (2017) highlights that while
Vietnam has increased its domestic production of wood pulp, the industry still relies heavily on imported raw materials,
particularly high-quality paper. This dependence on imports exposes the sector to price fluctuations in the global market and
presents challenges in terms of cost management and competitiveness.
Environmental concerns have become increasingly prominent in Vietnam's paper manufacturing sector. Vo & Nguyen
(2022) discuss the environmental challenges faced by the industry, including high water consumption, energy use, and waste
generation. In response to these challenges and growing environmental awareness, many paper manufacturers in Vietnam
have begun implementing cleaner production technologies and adopting international environmental management
standards. The Vietnamese government has played a significant role in shaping the development of the paper
manufacturing sector. Tran & Pham (2018) analyze the impact of various policies and initiatives, including tax incentives for
investment in modern technology, support for research and development, and efforts to promote sustainable forestry
practices. These
policies aim to enhance the sector's competitiveness while addressing environmental concerns.
Innovation and technology adoption have become key focus areas for Vietnam's paper manufacturing sector. Le et al.
(2021) examine the increasing use of automation and digital technologies in paper production processes, noting that such
advancements have contributed to improved efficiency and product quality. However, the authors also highlight that the
level of technology adoption varies significantly across industries, with larger firms and foreign-invested enterprises generally
leading in this area.
The export performance of Vietnam's paper manufacturing sector has improved notably in recent years. According to
the General Statistics Office of Vietnam (2021), paper and paper product exports reached a value of approximately $1.5
billion in 2020, representing a significant increase from previous years. Nguyen (2019) attributed this export growth to
improvements in product quality, competitive pricing, and the expansion of Vietnam's trade relationships. Capital
development remains a critical challenge for the sector. Pham & Nguyen (2020) discuss the need for skilled labor in the paper
manufacturing industry, particularly as companies adopt more advanced technologies. The authors suggest that addressing
this skills gap through improved vocational training and industry-academia collaboration is crucial for the sector's continued
growth and competitiveness.
The COVID-19 pandemic has had a mixed impact on Vietnam's paper manufacturing sector. While demand for certain
paper products, such as packaging materials for e-commerce, has increased, other segments have faced challenges due to
disruptions in global supply chains and changes in consumer behavior. Tran et al. (2022) analyze sector resilience during the
pandemic and note that companies with diversified product portfolios and strong domestic market presence have generally
fared better.
In the future, Vietnam's paper manufacturing sector faces both opportunities and challenges. The Le & Hoang (2023)
project continued to grow in domestic demand and export opportunities, particularly in the packaging segment. However,
the authors also highlight potential challenges, including increasing competition from regional producers, the need for
substantial investments in sustainable production practices, and the ongoing challenge of raw material supply.
In conclusion, the paper manufacturing sector in Vietnam has undergone significant development and transformation,
emerging as an important contributor to the country's industrial landscape. While the sector has achieved notable growth
and improvements in productivity and quality, it also faces ongoing challenges related to raw material supply, environmental
sustainability, and human capital development. As Vietnam continues its economic development trajectory, the evolution of
its paper manufacturing sector will likely play a crucial role in shaping the country's industrial competitiveness and
environmental sustainability efforts.
2.4. Theoretical framework

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The theoretical framework for this study on the factors affecting the ability of paper manufacturing enterprises in
Vietnam to apply lean accounting is grounded in several well-established theories and models from the fields of management
accounting, organizational change, and technology adoption. This multifaceted approach is necessary to capture the
complexity of implementing lean accounting in a specific industry and cultural context.
One of the primary theoretical foundations for this research is the contingency theory of management accounting.
This theory, as described by Otley (1980) and further developed by Chenhall (2003), posits that there is no universally
appropriate accounting system applicable to all organizations in all circumstances. Instead, the effectiveness of a particular
accounting system, such as lean accounting, depends on specific organizational and environmental factors. In the context of
this study, contingency theory provides a framework for understanding how various factors, including organizational
structure, technology, and the external environment, influence the adoption and effectiveness of lean accounting practices in
Vietnamese paper manufacturing enterprises.
Building on contingency theory, the study also incorporates elements of institutional theory, as articulated by
DiMaggio & Powell (1983). Institutional theory suggests that organizations adopt practices not only for efficiency reasons but
also because of institutional pressures to conform to societal norms and expectations. In the context of lean accounting
adoption in Vietnam, institutional theory can help explain how factors such as the regulatory environment, industry norms,
and cultural expectations may influence the decision to implement lean accounting practices.
The technology acceptance model (TAM), developed by Davis (1989), provides another crucial theoretical pillar for
this research. TAM posits that the perceived usefulness and perceived ease of use of a new technology (or, in this case, a new
accounting system) are primary determinants of its acceptance and use. This model is particularly relevant when examining
factors such as the availability of lean accounting software and employee knowledge and skills, as it helps explain how these
factors might influence the adoption of lean accounting practices.
To address the organizational change aspects of implementing lean accounting, this study draws on Lewin's (1951)
three-step model of change. This model, which describes the change process as unfreezing, changing, and refreezing,
provides a framework for understanding the challenges and strategies involved in transitioning from traditional accounting
methods to lean accounting practices. Kotter's (1995) eight-step process for leading change offers a more detailed model that
can be applied to the specific context of lean accounting implementation in Vietnamese paper manufacturing enterprises.
The resource-based view (RBV) of the firm, as described by Barney (1991), is also incorporated into the theoretical
framework. The RBV suggests that a firm's competitive advantage is derived from its unique bundle of resources and
capabilities. In the context of this study, the RBV can help explain how factors such as top management support, employee
knowledge and skills, and existing accounting system complexity can serve as resources or constraints in the implementation
of lean accounting.
To address the specific context of lean accounting within lean manufacturing environments, this study incorporates
the lean accounting conceptual framework proposed by Maskell & Baggaley (2006). This framework outlines the principles
and practices of lean accounting and provides a basis for understanding how these practices align with and support lean
manufacturing operations.
The diffusion of innovations theory, developed by Rogers (2003), offers insights into how new ideas and practices,
such as lean accounting, spread within a social system. This theory is particularly relevant when examining factors such as
competitive pressure and customer demand for cost-effective products, as it helps explain how these external factors might
influence the adoption of lean accounting practices across the industry.
To address the cultural aspects of implementing lean accounting in the Vietnamese context, Hofstede's (2001) cultural
dimension theory is used. This theory provides a framework for understanding how national culture might influence the
acceptance and implementation of management practices such as lean accounting.
Stakeholder theory, as articulated by Freeman (1984), is also relevant to this study. This suggests that organizations
should consider the interests of all stakeholders, not just shareholders, in their decision-making processes. In the context of
lean accounting implementation, stakeholder theory can help explain how factors such as customer demand and competitive
pressure influence adoption decisions.
The study also draws on the dynamic capabilities framework developed by Teece et al. (1997). This framework
emphasizes the importance of an organization's ability to integrate, build, and reconfigure internal and external
competencies to address rapidly changing environments. In the context of lean accounting implementation, this framework
can help explain how factors such as employee knowledge and skills and the complexity of production processes influence an
organization's ability to successfully adopt and benefit from lean accounting practices.
To address the specific challenges of implementing management accounting changes, this study incorporates the
framework proposed by Burns & Scapens (2000). This framework, which draws on institutional theory and evolutionary
economics, provides insights into how management accounting practices become institutionalized within organizations and
how they can change over time.
The balanced scorecard framework, developed by Kaplan & Norton (1992), is also relevant to this study. While not
specifically focused on lean accounting, the balance scorecard's emphasis on integrating financial and nonfinancial measures

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aligns well with lean accounting principles. This framework can help explain how lean accounting practices might be
integrated into broader performance measurement and management systems within paper manufacturing enterprises.
Finally, the study incorporates elements of complexity theory, as applied to organizational change by Stacey (1995).
This theory suggests that organizations are complex adaptive systems that cannot be fully controlled or predicted. In the
context of lean accounting implementation, complexity theory can help explain why the process of adopting new accounting
practices may be nonlinear and why outcomes may vary across different organizations.
By integrating these diverse theoretical perspectives, this study aims to provide a comprehensive framework for
understanding the multifaceted factors affecting the ability of paper manufacturing enterprises in Vietnam to apply lean
accounting. This theoretical foundation will guide the development of research hypotheses, inform the selection of variables
for empirical analysis, and provide a basis for interpreting the study's findings.
2.5. Research hypothesis development
2.5.1. Top management support
H1: Top management support positively influences the ability of paper manufacturing enterprises in Vietnam to apply
lean accounting.
Top management support has been consistently identified as a critical factor in the successful implementation of new
management practices and systems. In the context of lean accounting, which represents a significant shift from traditional
accounting methods, the role of top management becomes even more crucial. This hypothesis posits that higher levels of top
management support lead to a greater ability to apply lean accounting practices in Vietnamese paper manufacturing
enterprises.
The importance of top management support in the implementation of new accounting systems and practices is well
documented in the literature. Shields (1995) reported that top management support was the most important factor in the
successful implementation of activity-based costing systems. Similarly, in their study of lean accounting implementation,
Fullerton et al. (2013) emphasized the critical role of top management support in driving the adoption of lean accounting
practices.
Top management support can manifest in various ways that facilitate the implementation of lean accounting. First, it
ensures the allocation of necessary resources, both financial and human, to support the transition to lean accounting
practices (Maskell & Kennedy, 2007). This can include investing in training programs, acquiring appropriate software, and
potentially restructuring accounting departments to align with lean principles.
Second, top management support signals the importance of the initiative to the entire organization. As noted by
Achanga et al. (2006), in their study of critical success factors for lean implementation, strong leadership and management
commitment are essential in creating a supportive organizational culture for lean initiatives. This cultural aspect is particularly
relevant in the context of lean accounting, which often requires a significant shift in mindset and practices.
Furthermore, top management can play a crucial role in overcoming resistance to change, which is often a significant
barrier in implementing new accounting practices. Kennedy & Widener (2008) highlighted that resistance to change was one
of the key challenges in lean accounting implementation. Strong top management support can help mitigate this resistance
by clearly communicating the benefits of lean accounting and actively championing the change process.
In the specific context of Vietnamese paper manufacturing enterprises, top management support may be even more
critical due to the hierarchical nature of many Asian organizational cultures. Hoang et al. (2010), in their study of lean
implementation in Vietnamese manufacturing firms, reported that top management commitment was a key success factor,
particularly in navigating the cultural aspects of lean adoption.
This hypothesis aligns with institutional theory (DiMaggio & Powell, 1983), which suggests that organizational
practices are influenced by leadership directives. It also resonates with the resource-based view of the firm (Barney, 1991), as
top management support can be viewed as a valuable organizational resource that can facilitate the development of new
capabilities, such as lean accounting practices.
2.5.2. Existing accounting system complexity
H2: The complexity of the existing accounting system negatively influences the ability of paper manufacturing
enterprises in Vietnam to apply lean accounting.
This hypothesis posits that manufacturing enterprises in Vietnam with more complex existing accounting systems face
greater challenges in implementing lean accounting practices. The complexity of an accounting system can be characterized
by factors such as the number of cost centers, the intricacy of cost allocation methods, the degree of system integration, and
the volume of transactions processed (Krumwiede, 1998).
The rationale behind this hypothesis is rooted in the concept of path dependency in organizational change. As argued
by Scapens (1994), organizations tend to follow established routines and practices, making it difficult to implement radical

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changes. In the context of accounting systems, this suggests that more complex existing systems may create inertia that
resists the transition to lean accounting practices.
Complex accounting systems often involve significant investments of time, resources, and organizational learning. As
noted by Cooper & Zmud (1990), in their study of information technology implementation, the complexity of existing systems
can create both technical and organizational barriers to adopting new practices. In the case of lean accounting, which often
involves simplifying and streamlining accounting processes, a highly complex existing system may present substantial
challenges.
Empirical evidence supports the notion that existing system complexity can hinder the adoption of new accounting
practices. For example, Caglio (2003) reported that the complexity of existing systems was a significant barrier to the
implementation of enterprise resource planning (ERP) systems, which often involve changes in accounting practices.
Similarly, in their study of lean accounting implementation, Fullerton & Kennedy (2009) reported that companies with
simpler, less bureaucratic accounting systems were better positioned to adopt lean accounting practices.
The complexity of existing accounting systems may be particularly challenging in the context of Vietnamese paper
manufacturing enterprises. Le et al. (2020), in their study of management accounting practices in Vietnamese manufacturing
firms, reported that many companies still rely on traditional, complex cost accounting systems. This suggests that the
transition to lean accounting may require significant changes to existing practices and systems.
Furthermore, complex accounting systems often align with traditional manufacturing approaches that emphasize
detailed cost tracking and allocation. As argued by Maskell & Baggaley (2006), these traditional systems can be at odds with
lean principles, which focus on value streams and simplified reporting. The more complex the existing system is, the greater
the potential misalignment with lean accounting principles.
This hypothesis also aligns with the Technology Acceptance Model (TAM) proposed by Davis (1989). According to the
TAM, the perceived ease of use of a new system (in this case, lean accounting) influences its adoption. A highly complex
existing system may reduce the perceived ease of use of lean accounting practices, thereby hindering their adoption.
In the specific context of the paper manufacturing industry, where production processes can be complex and involve
multiple stages, existing accounting system complexity may be particularly pronounced. Lail et al. (2016), in their study of
lean accounting in the paper industry, noted that simplifying complex, traditional accounting systems was a key challenge in
implementing lean accounting practices.
2.5.3. Availability of lean accounting software
H3: The availability of lean accounting software positively influences the ability of paper manufacturing enterprises in
Vietnam to apply lean accounting.
This hypothesis posits that manufacturing enterprises in Vietnam with greater access to and availability of lean
accounting software will be better positioned to implement and utilize lean accounting practices. Lean accounting software
refers to specialized tools and applications designed to support lean accounting principles, such as value stream costing, box
score reporting, and visual performance management.
The rationale for this hypothesis is grounded in the Technology Acceptance Model (TAM) proposed by Davis (1989),
which suggests that the perceived usefulness and ease of use of a technology significantly influence its adoption. In the
context of lean accounting, specialized software can enhance both the perceived usefulness and ease of use of lean
accounting practices by automating complex calculations, facilitating data visualization, and streamlining reporting processes.
Empirical evidence supports the importance of appropriate software in the implementation of advanced accounting
practices. For example, Askarany et al. (2007) reported that the availability of software support was a significant factor in the
adoption of activity-based costing systems. Similarly, in their study of lean accounting implementation, Fullerton et al. (2014)
noted that companies with more advanced information technology capabilities were better able to implement lean
accounting practices.
The availability of lean accounting software can address several challenges associated with lean accounting
implementation. As highlighted by Maskell & Baggaley (2006), one of the key difficulties in transitioning to lean accounting is
the need to capture and report financial information in a manner consistent with lean principles. Specialized software can
facilitate this transition by providing tools specifically designed for value stream costing and other lean accounting
techniques. In the context of Vietnamese paper manufacturing enterprises, the availability of lean accounting software may
be particularly crucial. Le et al. (2021), in their study of technology adoption in Vietnam's manufacturing sector, reported
that the availability of appropriate software was a key factor in the successful implementation of advanced management
practices. This
suggests that access to lean accounting software could play a similar role in facilitating lean accounting adoption.
Furthermore, lean accounting software can help bridge the gap between traditional accounting systems and lean
principles. Ruiz-de-Arbulo-Lopez et al. (2013) demonstrated how specialized software could integrate lean accounting
practices with existing Enterprise Resource Planning (ERP) systems, facilitating a smoother transition to lean accounting.

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The availability of lean accounting software also aligns with the resource-based view of the firm (Barney, 1991), as it
can be considered a valuable resource that enables the development of new capabilities. In this case, the software serves as a
tool that allows firms to develop and enhance their lean accounting capabilities.
For paper manufacturing enterprises, which often have complex production processes and diverse product lines, the
availability of lean accounting software can be particularly beneficial. Lail et al. (2016), in their study of lean accounting in the
paper industry, emphasized the importance of appropriate software tools in managing the complexities of value stream
costing and performance measurement in this sector.
Moreover, the availability of lean accounting software can support the continuous improvement of lean philosophy.
As noted by Kennedy & Brewer (2005), lean accounting is not a one-time implementation but an ongoing process of
refinement and improvement. Software that can adapt to evolving lean practices and provide real-time insights can support this
continuous improvement process.
2.5.4. Complexity of production processes
H4: The complexity of production processes negatively influences the ability of paper manufacturing enterprises in
Vietnam to apply lean accounting.
This hypothesis posits that paper manufacturing enterprises in Vietnam with more complex production processes face
greater challenges in implementing and utilizing lean accounting practices. Production process complexity can be
characterized by factors such as the number of production stages, variety of products, frequency of changeovers, and
interdependencies between different production lines (Mccutcheon & Meredith, 1993).
The rationale behind this hypothesis is rooted in the fundamental principles of lean accounting, which emphasize
simplicity and direct attribution of costs to value streams. As noted by Maskell & Baggaley (2006), lean accounting is designed
to provide clear, timely, and actionable information to support lean manufacturing operations. However, as production
processes become more complex, maintaining this simplicity and clarity in accounting practices becomes increasingly
challenging.
Empirical evidence supports the notion that production complexity can hinder the implementation of advanced
management accounting practices. For example, Abernethy et al. (2001) reported that organizations with more complex
production environments faced greater difficulties in implementing activity-based costing systems. Similarly, in their study of
lean accounting implementation, Fullerton et al. (2013) reported that companies with simpler, more streamlined production
processes were better positioned to adopt lean accounting practices.
In the context of the paper manufacturing industry, production complexity can be particularly pronounced. As
highlighted by Lail et al. (2016) in their study of lean accounting in the paperboard packaging industry, paper manufacturing
often involves multiple production stages, diverse product lines, and complex cost structures. These factors can make it
challenging to apply lean accounting principles such as value stream costing and simplified performance measurements.
The complexity of production processes may also interact with other organizational factors to influence lean
accounting adoption. For example, Kennedy & Widener (2008) reported that the effectiveness of management control
systems, including accounting practices, was influenced by the level of task uncertainty and complexity in manufacturing
environments. This suggests that more complex production processes may require more sophisticated accounting systems,
potentially conflicting with the simplified principles of lean accounting.
Furthermore, complex production processes often align with traditional cost accounting methods that emphasize the
detailed tracking of costs across multiple cost centers and the allocation of overhead costs. As argued by Cooper & Kaplan
(1988) in their seminal work on activity-based costing, complex production environments often require more sophisticated
cost allocation methods. This can create tension with lean accounting principles, which generally advocate for simpler, more
direct cost attribution methods.
In the specific context of Vietnamese manufacturing enterprises, the challenge of production complexity may be
compounded by the industry's developmental stage. Pham et al. (2020), in their study of lean manufacturing implementation
in Vietnam, noted that many companies are still in the process of modernizing and streamlining their production processes.
This ongoing transition may create additional challenges for implementing lean accounting practices in environments with
complex production processes.
The complexity of production processes also relates to the concept of value streams, which is central to lean
accounting. As explained by Maskell et al. (2011), lean accounting aims to report costs and profitability by value streams
rather than byproducts or departments. In highly complex production environments, clearly defining and managing distinct
value streams can be challenging, potentially hindering the effective implementation of lean accounting practices.
2.5.5. Employee knowledge and skills related to lean accounting
H5: Employee knowledge and skills related to lean accounting positively influence the ability of paper manufacturing
enterprises in Vietnam to apply lean accounting.

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This hypothesis posits that manufacturing enterprises in Vietnam with employees possessing higher levels of
knowledge and skills related to lean accounting will be better positioned to implement and effectively utilize lean accounting
practices. Employee knowledge and skills in this context refer to the understanding of lean accounting principles, proficiency
in lean accounting techniques, and the ability to apply these concepts in the specific context of paper manufacturing.
The rationale for this hypothesis is grounded in human capital theory, which suggests that investments in human
capital, including knowledge and skills, contribute to organizational performance (Becker, 1964). In the context of lean
accounting, employee knowledge and skills represent critical resources that can facilitate the adoption and effective use of
new accounting practices.
Empirical evidence supports the importance of employee knowledge and skills in the implementation of advanced
accounting practices. For example, Chenhall (2004) reported that employee skills and training were significant factors in the
successful implementation of activity-based cost management systems. Similarly, in their study of lean accounting
implementation, Fullerton & Kennedy (2009) emphasized the crucial role of employee knowledge and skills in overcoming
resistance to change and effectively applying lean accounting principles.
The importance of employee knowledge and skills is particularly pronounced in the context of lean accounting, which
often represents a significant departure from traditional accounting practices. As noted by Maskell & Baggaley (2006), lean
accounting requires a shift in mindset and approach, moving away from detailed cost tracking and allocation toward value
stream-based reporting and decision-making. This transition necessitates not only technical accounting skills but also a deep
understanding of lean principles and their application in accounting contexts.
In the specific context of Vietnamese manufacturing enterprises, the importance of employee knowledge and skills
may be amplified. Pham & Hoang (2019), in their study of management accounting practices in Vietnam, reported that a lack
of qualified personnel was a significant barrier to the adoption of advanced accounting techniques. This suggests that
enhancing employee knowledge and skills related to lean accounting could be a crucial factor in facilitating its adoption and
effective use. Furthermore, employee knowledge and skills can play a vital role in adapting lean accounting principles to the
specific context of paper manufacturing. As highlighted by Lail et al. (2016) in their study of lean accounting in the paper
industry, the unique characteristics of paper production processes require a tailored approach to lean accounting. Employees
with a strong foundation in lean accounting principles, combined with industry-specific knowledge, are better equipped to
make these
necessary adaptations.
The role of employee knowledge and skills also aligns with the concept of absorptive capacity, as described by Cohen
& Levinthal (1990). Absorptive capacity refers to an organization's ability to recognize the value of new information,
assimilate it, and apply it to commercial ends. In the context of lean accounting implementation, employees with relevant
knowledge and skills enhance the organization's absorptive capacity, facilitating the effective adoption and utilization of lean
accounting practices.
Moreover, employee knowledge and skills related to lean accounting can contribute to continuous improvement efforts,
which are central to lean philosophy. As argued by Womack & Jones (2003), lean thinking emphasizes ongoing learning and
improvement. Employees with a strong foundation in lean accounting are better positioned to contribute to this continuous
improvement process, identifying opportunities for refinement and innovation in accounting practices.
2.5.6. Competitive pressure in the industry
H6: Competitive pressure in industry positively influences the ability of paper manufacturing enterprises in Vietnam to
apply lean accounting.
This hypothesis posits that paper manufacturing enterprises in Vietnam facing higher levels of competitive pressure in
their industry are more likely to implement and effectively utilize lean accounting practices. Competitive pressure in this
context refers to the intensity of rivalry among existing competitors, as well as threats from new entrants and substitute
products or services (Porter, 1980).
The rationale for this hypothesis is grounded in institutional theory, particularly the concept of mimetic isomorphism
(DiMaggio & Powell, 1983). This theory suggests that organizations tend to imitate the practices of successful competitors,
especially under conditions of uncertainty or intense competition. In the context of lean accounting, companies facing strong
competitive pressure may be more inclined to adopt innovative accounting practices that are perceived to provide
competitive advantages.
Empirical evidence supports the notion that competitive pressure can drive the adoption of advanced management
accounting practices. For example, Abdel-Kader & Luther (2008) reported that companies operating in more competitive
environments were more likely to adopt sophisticated management accounting practices. Similarly, in their study of lean
accounting implementation, Fullerton et al. (2013) reported that competitive pressures were a significant driver of lean
accounting adoption among manufacturing firms.
In the specific context of the paper manufacturing industry, competitive pressure can be particularly intense because
of factors such as global competition, environmental regulations, and changing customer demands. As noted by Lail et al.

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(2016), in their study of lean accounting in the paper industry, these pressures drive companies to seek more efficient and
effective management practices, including lean accounting.
Competitive pressure can influence lean accounting adoption through several mechanisms. First, it can create a sense
of urgency for improving operational efficiency and cost management, which are key objectives of lean accounting. As argued
by Maskell & Baggaley (2006), lean accounting provides more accurate and timely information for decision-making,
potentially offering a competitive edge in a high-pressure environment.
Second, competitive pressure can encourage companies to benchmark against industry leaders, potentially leading to
the adoption of best practices such as lean accounting. This aligns with the concept of best practice diffusion, as described by
Abrahamson (1991), where companies adopt management innovations perceived to be effective in their industry.
In the context of Vietnamese manufacturing enterprises, the impact of competitive pressure may be particularly
pronounced. Pham et al. (2020), in their study of lean manufacturing implementation in Vietnam, reported that competitive
pressure was a significant driver of lean practice adoption. This suggests that similar dynamics could apply to the adoption of
lean accounting practices.
Furthermore, competitive pressure can interact with other factors to influence lean accounting adoption. For example,
Chong & Chong (1997) reported that the relationship between competitive strategy and management accounting system
design was stronger in more competitive environments. This suggests that companies facing intense competition may be
more likely to align their accounting practices with their competitive strategies, potentially favoring lean accounting if they
pursue a lean manufacturing approach.
The role of competitive pressure in driving lean accounting adoption also aligns with the resource-based view of the
firm (Barney, 1991). From this perspective, lean accounting capabilities can be seen as a potential source of competitive
advantage. Companies facing strong competitive pressure may be more motivated to develop these capabilities as a means
of differentiation and improved performance.
2.5.7. Customer demand for cost-effective products
H7: Customer demand for cost-effective products positively influences the ability of paper manufacturing enterprises in
Vietnam to apply lean accounting.
This hypothesis posits that paper manufacturing enterprises in Vietnam experiencing higher levels of customer
demand for cost-effective products are more likely to implement and effectively utilize lean accounting practices. Customer
demand for cost-effective products in this context refers to pressure from customers for high-quality products at competitive
prices, which often necessitates efficient cost management and pricing strategies.
The rationale for this hypothesis is grounded in market orientation theory, which emphasizes the importance of
responding to customer needs and market demands (Narver & Slater, 1990). In the context of lean accounting, companies
facing strong customer pressure for cost-effective products may be more inclined to adopt accounting practices that support
cost reduction and value creation.
Empirical evidence supports the notion that customer demands can drive the adoption of advanced management
accounting practices. For instance, Guilding & McManus (2002) reported that customer accounting practices were more
prevalent in organizations facing intense customer pressure. Similarly, in their study of lean accounting implementation,
Fullerton et al. (2014) reported that customer focus was a significant driver of lean accounting adoption among
manufacturing firms.
In the specific context of the paper manufacturing industry, customer demand for cost-effective products can be
particularly intense because of factors such as increasing competition, environmental concerns, and changing consumer
preferences. As noted by Lail et al. (2016), in their study of lean accounting in the paper industry, these pressures drive
companies to seek more efficient production methods and cost management practices, including lean accounting.
Customer demand for cost-effective products can influence lean accounting adoption through several mechanisms.
First, it can create a need for more accurate and timely cost information to support competitive pricing decisions. As argued
by Maskell & Baggaley (2006), lean accounting provides more relevant and actionable cost information than traditional cost
accounting methods do, potentially enabling companies to respond more effectively to customer price pressures.
Second, customer demand for cost-effective products can drive companies to focus on value creation and waste
elimination, which are key principles of lean thinking. This aligns with the value stream perspective emphasized in lean
accounting, as described by Kennedy & Brewer (2005). Lean accounting practices can help companies identify and measure
value from the customer's perspective, supporting efforts to deliver cost-effective products.
In the context of Vietnamese manufacturing enterprises, the impact of customer demand for cost-effective products
may be particularly pronounced. In their study of lean manufacturing implementation in Vietnam, Pham et al. (2019)
reported that customer focus was a significant driver of lean practice adoption. This suggests that similar dynamics could
apply to the adoption of lean accounting practices.
Furthermore, customer demand for cost-effective products can interact with other factors to influence lean
accounting adoption. For example, Chenhall & Langfield-Smith (1998) reported that customer-focused strategies were

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Hung (2025) 13
associated with the

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adoption of advanced management accounting practices. This suggests that companies prioritizing customer needs may be
more likely to adopt innovative accounting practices such as lean accounting to support their strategic objectives.
The role of customer demand in driving lean accounting adoption also aligns with the resource-based view of the firm
(Barney, 1991). From this perspective, the ability to meet customer demands for cost-effective products through efficient
cost management and pricing strategies can be seen as a potential source of competitive advantage. Lean accounting
capabilities can support the development of these competencies.
3. Research Methodology
On the basis of an overview of basic theories and empirical research, an in-depth study is needed to expand the
theoretical framework, providing more empirical evidence on the relationships between factors and the applicability of lean
accounting in paper manufacturing enterprises in Vietnam. The study clarifies this relationship via a linear structural equation
model (PLS-SEM) with the support of SPSS 22 and AMOS 20 software (Arbuckle, 2011).
For optimal results, the authors conducted a validation process as follows: Following Anderson & Gerbing (1988), the
linear structural model analysis process includes the following steps: (i) Scale test: overall, Cronbach’s alpha coefficient >0.6
and corrected item‒total correlation >0.3; (ii) exploratory factor analysis (EFA): appropriateness of the measure with 0.5≤
Kaiser‒Meyer‒Olkin (KMO) ≤1, Bartlett’s test of sphericity with a significance level (Sig) ≤ 0.05, factor extraction variance
>50%, eigenvalues >1, factor loadings > 0.3 (Hair et al., 2006); (iii) confirmatory factor analysis (CFA): adjusted chi‒square
divided by degrees of freedom (Cmin‒Df) ≤5 (Bentler, 1980), Tucker‒Lewis index (TLI) > 0.9 (Hu & Bentler, 1998),
comparative fit index (CFI) > 0.9 (Hu & Bentler, 1998), comparative fit index (CFI) > 0.9 (Hu & Bentler, 1998), normed fit index
> 0.9 (Hu & Bentler, 1998), normed fit index > 0.9 (Hu & Bentler, Bentler,
The research model is shown in Figure 1, with the economic equation of the study corresponding to the model: AAA =
f (TMA, EAS, ALS, CPP, EKS, CPI, CDC).

TMA

EAS

ALS

CPP AAA

EKS

CPI

CDC

Figure 1 Research model.

To assess the applicability of lean accounting in paper-producing enterprises (dependent variables), the author uses a
5-point Likert scale ranging from (1) strongly disagree to (5) strongly agree. To evaluate the factors as independent variables,
the author uses a 5-level Likert scale to influence them, as follows: (1). Very low to (5). The very high number of scales used
to measure the variables of this study is built on the basis of foundation theory and the research overview, as shown in Table
1.
In addition, to ensure the study sample size in SEM analysis, on the basis of the recommendations of Bentler & Chou
(1987), a ratio of 5--10 surveys was proposed for each survey question. Kline (2023) recommends a minimum sample size of
200 for any SEM analysis or 10 cases per observation, whichever is greater. Accordingly, the minimum sample size in this
study is n = 10*i (i is the number of observed variables in the model); corresponding to this study, the sample size is 10*25 =
250 votes. To improve the reliability of the survey information, the study selects the largest sample for the model according
to one of the above principles.
The author uses a convenient sampling method, and 298 valid votes are obtained out of a total of 560 issued through
the distribution and receipt of direct questionnaires, sending and receiving questionnaires through the Google Form tool to
the directors/business owners, chief accountants and accountants of 145 pulp and paper manufacturing enterprises of Vietnam
in the period from April 2024 to August 2024. The data were cleaned before running the model via SPSS 22 and AMOS 20

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software.

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Table 1 Attribute coding of factors influencing the ability to apply lean accounting.
No. Code Survey question content Source
I Top management support (TMA)
1 TMA1 Top management actively promotes the Fullerton et al. (2013); Maiga &
implementation of lean accounting. Jacobs
(2008).
2 TMA2 Top management allocates adequate Fullerton et al. (2013); Chenhall
resources (2004).
for lean accounting initiatives.
3 TMA3 Top management is actively involved in Kennedy & Widener (2008); Maiga &
reviewing the progress of lean Jacobs (2008).
accounting
implementation.
II Existing accounting system complexity
(EAS)
4 EAS1 Our current accounting system is highly Schoute (2009); Krumwiede
complex and difficult to modify. (1998).
5 EAS2 We have numerous interconnected Abernethy et al. (2001); Schoute
subsystems (2009).
within our accounting structure.
6 EAS3 Our existing accounting system Krumwiede (1998); Abernethy et
requires al.
significant effort to maintain and (2001).
update.
III Availability of lean accounting software
(ALS)
7 ALS1 There are readily available software Fullerton & Kennedy (2009);
solutions Maiga &
that support lean accounting practices. Jacobs (2008).
8 ALS2 Our company has access to software that Fullerton et al. (2014); Kennedy &
can Widener (2008).
facilitate value stream costing.
9 ALS3 There are software options available that can Fullerton & Kennedy (2009); Abernethy
integrate lean accounting with our existing et al. (2001).
systems.
IV Complexity of production processes
(CPP)
10 CPP1 Our production processes involve multiple, Fullerton et al. (2013); Baines &
intricate steps. Langfield-Smith (2003).
11 CPP2 We have a high degree of product diversity Abernethy et al. (2001); Baines &
in Langfield-Smith (2003).
our manufacturing operations.
12 CPP3 Our production system requires complex Fullerton et al. (2013); Kennedy &
scheduling and resource allocation. Widener (2008).
V Employee knowledge and skills related to lean accounting (EKS)
13 EKS1 Our employees have a good understanding Fullerton et al. (2013); Maiga &
of Jacobs
lean accounting principles. (2008).
14 EKS2 Our staff possesses the necessary skills to Kennedy & Widener (2008);
implement lean accounting practices. Chenhall
(2004).
15 EKS3 Our employees receive adequate training in Fullerton et al. (2013); Maiga &
lean accounting methodologies. Jacobs
(2008).
VI Competitive pressure in the industry
(CPI)
16 CPI1 There is intense price competition in our Baines & Langfield-Smith (2003);
industry. Chenhall (2004).

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Hung (2025) 17
17 CPI2 We face strong competition in our Baines & Langfield-Smith (2003);
market. Fullerton et al. (2013).
18 CPI3 Competitive actions of our competitors are Chenhall (2004); Baines &
a Langfield-
constant threat to our market position. Smith (2003).
VII Customer demand for cost-effective
products (CDC)
19 CDC1 Our customers are very sensitive to product Fullerton et al. (2013); Chenhall
pricing. (2004).
20 CDC2 There is a strong demand for cost-effective Baines & Langfield-Smith (2003);
products in our market. Fullerton et al. (2013).
21 CDC3 Our customers frequently request Kennedy & Widener (2008);
information Chenhall
about our cost-saving initiatives. (2004).
VIII Ability to apply lean accounting (AAA)

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22 AAA1 Our company has successfully implemented Fullerton et al. (2013); Kennedy &
value stream costing. Widener (2008);
23 AAA2 We have effectively simplified our financial Maskell & Baggaley (2006); Fullerton &
reporting processes in line with lean Kennedy (2009).
accounting
principles.
24 AAA3 Our company has successfully integrated Fullerton et al. (2014); Maskell &
operational metrics into our accounting Kennedy (2007).
practices.
25 AAA4 We have effectively reduced waste in our Ruiz-de-Arbulo-Lopez et al. (2013);
accounting processes through lean accounting Fullerton et al. (2013).
practices.

4. Results
4.1. Descriptive statistical analysis
The survey respondents were fairly evenly distributed between men (44.97%) and women (55.03%), with the majority
being female. This shows a good gender balance in the sample. In terms of age, the majority of respondents (49.66%) were
between the ages of 26 and 35, followed by those between 36 and 45 (18.12%). This suggests a relatively young workforce at
the surveyed companies, with more than two-thirds of respondents under the age of 45. In terms of education, the majority
of respondents (77.18%) have a bachelor's degree, whereas 18.79% have a master's degree and 4.03% have a doctorate
degree. This shows that the workforce is highly educated in pulp and paper manufacturing enterprises. In terms of job title,
the largest group of respondents were accountants (46.64%), followed by chief accountants (20.47%), business directors
(19.13%), and business owners (13.76%). This allocation provides a good mix of perspectives from different levels of financial
management. In terms of experience, the respondents had different levels of experience; the largest group (34.23%) had 6--
10 years of experience, followed by those with 11--15 years (27.85%) and those with more than 16 years (23.83%). This
shows a balance between experienced professionals in the sample. In terms of familiarity with lean accounting concepts, the
majority (65.10%) of the respondents were not familiar with lean accounting concepts. Only 12.08% of the respondents said
they were familiar or very familiar with these concepts. This indicates a low level of awareness and understanding of lean
accounting in pulp and paper manufacturing enterprises, indicating a high demand for education and training in this area.
In general, the survey sample represents a relatively young, highly educated workforce with a good balance between
experience level and job position. However, there was a significant lack of understanding of lean accounting concepts among
the respondents, which was a significant barrier to the implementation of lean accounting at these enterprises. The
demographic information presented in the survey results is considered to accurately reflect the human resources at pulp and
paper manufacturing enterprises in Vietnam. This is consistent with the growing trend of women's participation in the
workforce in Vietnam, especially in accounting and management roles. Moreover, the low level of familiarity with lean
accounting concepts (65.10% unfamiliar at all) is consistent with the emerging nature of advanced management practices in
Vietnam's burgeoning pulp and paper manufacturing industry.
4.2. Assess the reliability of the scale
The Cronbach's alpha reliability coefficient is a test that reflects how closely the observed variables in the same factor
are correlated, which observed variables contribute to the measurement of the factor being retained and the inappropriate
observed variables removed. A Cronbach's alpha coefficient of 0.6 or more is suitable for use in situations where
measurement concepts are new, from 0.7 to 0.8, the scale is of good quality, and from 0.8 to 1, the scale is very good. In
theory, the higher this coefficient is, the better, but this is not correct; if this coefficient is from 0.95 to close to 1, it will show
that the observed variables used to measure the factor are likely to be duplicated, with no difference (Nunnally, 1978;
Peterson, 1994). In addition, if only the Cronbach's alpha reliability coefficient is used, it is not possible to decide which
observation variables are retained and which ones need to be eliminated. Therefore, it is necessary to evaluate the
Cronbach's alpha reliability coefficient in parallel with another coefficient, which is the variable–total correlation coefficient,
for the purpose of eliminating the observed variables with no value contributing to the factor being measured. The observed
variables are eliminated when the variable– total correlation coefficient is less than 0.3. The results of the reliability analysis
of the scale are detailed in Table 3 below.
4.3. Exploratory factor analysis
This method is used to reduce a set of many correlated observation variables to a set of variables with fewer
observation variables, but the content is still meaningful and contains all the information to be collected compared with the
original set of variables. With principal component analysis and Varimax, the correlated observation variables are grouped

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into a group of

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factors that are representative of the newly formed observation variables. Exploratory factor analysis was performed
separately for the 2 groups of independent and dependent variables, and the results are shown in Table 4.
Table 3 shows that all observed variables in the scale meet the criteria for conducting the next test steps, EFA
exploratory factor analysis.
Table 2 Characteristics of survey subjects.
N Demographic Information Person Percentage(%)
o.
1 Gender Male 134 44.97
Female 164 55.03
2 Age 18 to 25 year 38 12.75
26 to 35 year 148 49.66
36 to 45 year 54 18.12
46 to 55 year 32 10.74
Over 55 years old 26 8.72
3 Educational PhD 12 4.03
attainment
Master 56 18.79
Bachelor 230 77.18
4 Job position Business owner 41 13.76
Business director 57 19.13
Chief accountant 61 20.47
Accountant 139 46.64
5 Experiences Of between over one year and five years 42 14.09
From 6 to 10 years 102 34.23
From 11 to 15 years 83 27.85
Over 16 years 71 23.83
6 Familiarity with Not at all familiar 194 65.10
lean Slightly familiar 45 15.10
accounting
concepts
Moderately familiar 23 7.72
Familiar 19 6.38
Very familiar 17 5.70

Table 3 Scale analysis results for variables in the PLS SEM.

Variable Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Item Total Item
Deleted Deleted Correlation Deleted
Top management support (TMA): α = 0.851
TMA1 22.76 13.333 0.648 0.824
TMA2 22.73 13.274 0.647 0.824
TMA3 22.62 15.498 0.594 0.836
Existing accounting system complexity (EAS): α = 0.775
EAS1 14.70 6.935 0.615 0.711
EAS2 14.66 7.265 0.540 0.736
EAS3 14.69 7.191 0.519 0.743
Availability of lean accounting software (ALS): α = 0.824
ALS1 15.07 6.671 0.656 0.778
ALS2 15.09 6.815 0.630 0.786
ALS3 15.08 6.781 0.638 0.784
Complexity of production processes (CPP): α = 0.851
CPP1 22.52 14.604 0.618 0.829
CPP2 22.76 14.454 0.622 0.828
CPP3 22.74 14.470 0.612 0.830
Employee knowledge and skills related to lean accounting (EKS): α = 0.788
EKS1 11.10 4.788 0.548 0.760

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EKS2 11.13 4.489 0.611 0.729
EKS3 11.32 4.443 0.614 0.727
Competitive pressure in the industry (CPI): α = 0.889

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CPI1 29.79 26.079 0.660 0.875

CPI2 29.83 26.134 0.648 0.876
CPI3 29.79 26.129 0.639 0.877
Customer demand for cost-effective products (CDC): α = 0.794
CDC1 15.27 7.422 0.595 0.749
CDC2 15.30 7.390 0.608 0.745
CDC3 15.25 8.027 0.467 0.789
Ability to apply lean accounting (AAA): α = 0.877
AAA1 10.54 1.967 0.752 0.835
AAA2 10.52 2.043 0.713 0.851
AAA3 10.56 1.981 0.740 0.840
AAA4 10.54 2.041 0.734 0.843
Source: Statistical analysis via SPSS 22 software

Table 4 KMO and Bartlett test results for independent variables.

KMO and Bartlett's Test
Kaiser‒Meyer‒Olkin Measure of Sampling Adequacy 0.843
Bartlett's Test of Sphericity Approx. Chi-Square 6210.276
df 316
Sig. 0.000
Source: Report extracted from SPSS 22 software.

The results of the EFA for the independent variable in Table 4 show that the KMO value is equal to 0.843, and the
results of the Bartlett test have a value of 6210.276, with a significance level of Sig. = 0.000 < 0.05, indicating that the data
used in the analysis are suitable. There are 7 factors extracted at Eigenvalues = 1.238 > 1, so it can be confirmed that the
number of factors extracted is appropriate. The total explanatory variance of factor analysis is 69.667% > 50%. This means
that a 69.667% change in the factors is explained by the variables.
Next, the factor matrix table after rotation is considered, and the analysis results in Table 5 show that the observed
variables are gathered into 7 groups of variables, with the order of the observed variables remaining the same as the origina l
independent variables. The factor loading factors are greater than 0.5, so these 7 groups of independent variables are of
practical significance.
Table 5 Rotated component matrixa.
Pattern Matrixa Component
1 2 3 4 5 6 7
EAS1 .992
EAS2 .853
EAS3 .793
CPP3 .919
CPP2 .881
CPP1 .786
EKS3 .865
EKS1 .816
EKS2 .808
CPI2 .873
CPI1 .850
CPI3 .769
CDC1 .891
CDC2 .866
CDC3 .793
TMA2 .907
TMA1 .742
TMA3 .725
ALS2 .842
ALS1 .801
ALS3 .779
a. Rotation converged in 7 iterations.
Source: Statistical analysis was performed via SPSS 22 software.

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 Hung (2025) 23

The results of the EFA analysis for the dependent variable show that the KMO coefficient = 0.786, so the exploratory
factor analysis is appropriate for the actual data. The quantity Sig. = 0.000 satisfies the condition Sig. ≤ 0.05, so this test is
statistically significant, and the observed variables are correlated with each other overall, proving that the data used in the
analysis are suitable. Analysis of the total variance extracted for the dependent variable revealed that the percentage value
of the entire variance percentage = 64.112% > 50%, and the eigenvalue = 1.916> 1; thus, the model is eligible for exploratory
factor analysis, and the load factor of the observed variables is greater than 0.5, so the observed variables are of practical
significance. Therefore, the dependent variable is kept the same as the original independent variable, and there are 04
observed variables.
4.4. CFA and PLS-SEM analysis
The results of the confirmatory factor analysis and the estimation of the partial least squares structural equation
modeling model are illustrated in Figure 2 and Figure 3.

Figure 2 Summary of the confirmatory factor analysis results. Source: Statistics from AMOS 20 software.

The results of the confirmatory factor analysis indicate that the adjusted chi-square value divided by degrees of freedom
(Cmin/df) is 4.18, which is in the range ≤ 5. TLI value = 0.992, greater than 0.9; CFI value = 0.925 and greater than 0.9; NFI index
= 0.986, greater than 0.9; and RMSEA index = 0.037, which is less than 0.05. Therefore, the integrated model is suitable for
real data because it meets the test criteria.
The results from Figure 3 show that the adjusted chi-square value divided by degrees of freedom (Cmin/df) is 4.11,
which is in the range ≤ 5. TLI value = 0.921, greater than 0.9; CFI value = 0.931, exceeding 0.9; NFI index = 0.925, exceeding
0.9; and RMSEA index = 0.039, which is less than 0.05. Thus, the model is suitable for real data because it meets the
accreditation criteria.
Table 6 presents the hypothesis test results with the significance level of the estimated coefficients P ≤ 0.05; the
confidence level is ≥ 95%.
Table 6 shows the following variables: employee knowledge and skills related to lean accounting (EKS) and top
management support (TMA). The availability of lean accounting software (als) has a positive effect on the applicability of lean
accounting in pulp and paper manufacturing enterprises, with a statistically significant level indicated as P ≤ 0.05. In contrast,
the following variables, including existing accounting system complexity (EAS) and complexity of production processes (CPP),
have a negative effect on the applicability of lean accounting in pulp and paper manufacturing enterprises, with a statistically
significant level indicated as P ≤ 0.05. Moreover, the study did not find a statistically significant effect of the following
variables,
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Hung (2025) 24

including competitive pressure in the industry (CPI) and customer demand for cost-effective products (CDC), on the applicability
of lean accounting in pulp and paper manufacturing enterprises in Vietnam, with P > 0.05. Thus, hypotheses H1, H2, H3, H4
and H5 are accepted, and hypotheses H6 and H7 are rejected.

Figure 3 Results of the partial least squares structural equation modeling regression estimation model from the article. Source: Statistics
from AMOS 20 software.

Table 6 Results of hypothesis testing.

Hypothesis Imp Estimate S.E. C.R. P Label
act
H2 AAA <--- E -0.001 0.044 -2.47 0.014 Accept
AS
H5 AAA <--- E 0.012 0.07 0.032 *** Accept
KS
H6 AAA <--- C 0.133 0.06 2.225 0.126 Reject
PI
H7 AAA <--- C 0.17 0.042 4.105 0.975 Reject
DC
H1 AAA <--- T 0.141 0.049 0.844 *** Accept
MA
H3 AAA <--- A 0.011 0.012 0.557 0.003 Accept
LS
H4 AAA <--- C -0.085 0.048 -1.748 *** Accept
PP
Source: Statistics via AMOS 20 software.

5. Results and Discussion

The results of this study provide valuable insights into the factors affecting the applicability of lean accounting in pulp
and paper manufacturing enterprises in Vietnam. The findings reveal that employee knowledge and skills related to lean
accounting, top management support, and the availability of lean accounting software have significant positive impacts on
the ability to apply lean accounting. This suggests that enterprises with knowledgeable employees, supportive management,

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Hung (2025) 25
and access to appropriate software are better positioned to implement lean accounting practices.
Conversely, the complexity of existing accounting systems and production processes negatively influences the
applicability of lean accounting. This finding indicates that enterprises with more complex accounting systems and
production processes may face greater challenges in adopting lean accounting principles. The negative impact of these
factors highlights the importance of simplifying and streamlining both accounting and production processes to facilitate the
implementation of lean accounting.

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Hung (2025) 26

Interestingly, the study revealed no statistically significant effect of competitive pressure in the industry or customer
demand for cost-effective products on the applicability of lean accounting. This suggests that external market forces may not
be primary drivers for the adoption of lean accounting practices in the Vietnamese pulp and paper industry.
These findings provide a nuanced understanding of the internal organizational factors that play crucial roles in the
successful implementation of lean accounting in this specific industry context. The results emphasize the importance of
human capital, management support, and technological resources in driving the adoption of lean accounting practices while
also highlighting the potential barriers posed by complex existing systems and processes.
The findings of this study both align with and diverge from those of previous studies in several key areas. The positive
impact of employee knowledge and skills and top management support on lean accounting applicability is consistent with
earlier studies in other industries and contexts. For instance, Fullerton & Kennedy (2009) emphasized the crucial role of
employee knowledge and skills in overcoming resistance to change and effectively applying lean accounting principles.
Similarly, the importance of top management support aligns with the findings of numerous studies in the field of
management accounting innovations (e.g., Chenhall, 2004).
The positive influence of the availability of lean accounting software supports the findings of studies that highlight the
role of technology in facilitating advanced accounting practices (e.g., Granlund & Malmi, 2002). However, the specific focus
on lean accounting software in this study provides new insights into the importance of specialized tools in the context of lean
accounting implementation.
The negative impact of existing accounting system complexity and production process complexity on lean accounting
applicability is an interesting finding that adds nuance to the literature. While previous studies have often focused on the
benefits of lean accounting in complex manufacturing environments (e.g., Maskell & Baggaley, 2006), this study highlights
the potential challenges that complexity can pose in the adoption process.
Unlike some previous studies (e.g., Abdel-Kader & Luther, 2008), this study did not find a significant effect of
competitive pressure or customer demand for cost-effective products on lean accounting applicability. This can be explained
by the fact that the Vietnamese pulp and paper industry has distinct characteristics that help alleviate the influence of
competitive pressures on internal accounting practices. In Vietnam, this is a strictly regulated industry because its production
activities have a significant effect on the environment, there are significant barriers to entry, businesses must meet strict
environmental management requirements, and companies may feel less pressure to apply innovative accounting practices as
a means to gain competitive advantage. In addition, the surveyed companies are at different stages of the process of
implementing lean production. Lean principles have not been widely applied in production processes, and the pressure to
adjust accounting activities according to lean production principles is not large enough. This may explain why internal factors
such as employee knowledge and management support are more influential than external market pressures are.
Overall, while many of the findings align with the literature on lean accounting and management accounting
innovations, this study provides valuable context-specific insights into the factors influencing lean accounting applicability in
the Vietnamese pulp and paper industry. The results underscore the importance of considering both internal organizational
capabilities and potential barriers when implementing lean accounting practices in emerging economies and specific
industrial contexts.
6. Policy Implications and Implications of the Study
The findings of this study contribute significantly to the body of knowledge on lean accounting and its applicability in
specific industry contexts, particularly in emerging economies. First, the results reinforce the importance of internal
organizational factors in the adoption of innovative accounting practices. Second, the negative impact of existing acco unting
system complexity and production process complexity on lean accounting applicability adds a new dimension to the
theoretical understanding of barriers to accounting innovation. Moreover, the lack of significant impact of competitive
pressure and customer demand for cost-effective products on lean accounting applicability in this specific context challenges
some assumptions in the literature about the drivers of management accounting innovations. This unexpected result calls for
a re- examination of the role of external factors in driving accounting changes, particularly in emerging markets or specific
industries. These findings contribute to contingency theory in management accounting by highlighting the specific factors
that influence the applicability of lean accounting in a particular industry and national context. They also suggest that the
pathway to lean accounting adoption may differ between emerging economies and more developed markets, providing a
foundation for further comparative studies.
The results of this study offer several important practical implications for Vietnamese paper manufacturing
enterprises considering the implementation of lean accounting. First, the strong positive impact of employee knowledge and
skills related to lean accounting suggests that investing in training and development programs for accounting and finance
staff should be a priority. Enterprises should focus on building a workforce that is well versed in lean principles and their
application to accounting practices.
Second, the significance of top management support highlights the need for leadership engagement in the lean
accounting adoption process. Executives and senior managers should be educated about the benefits of lean accounting and

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Hung (2025) 27

actively champion its implementation throughout the organization. This may involve integrating lean accounting principles
into the company's strategic planning and performance measurement systems.
The positive influence of lean accounting software availability implies that enterprises should carefully evaluate and
invest in appropriate technological tools. This may involve partnering with software providers to develop or customize
solutions that fit the specific needs of the paper manufacturing industry in Vietnam.
The negative impact of existing accounting system complexity and production process complexity on lean accounting
applicability suggests that enterprises should undertake efforts to simplify and streamline their current systems and
processes before or in parallel with lean accounting implementation. This might involve process reengineering, system
upgrades, or the adoption of lean manufacturing principles in production processes.
Finally, the findings suggest that a phased or pilot approach to lean accounting implementation might be beneficial,
starting with areas where employee knowledge is strong and management support is high and gradually expanding as the
organization builds capabilities and simplifies its processes. This approach could help overcome the barriers posed by existing
complexities and allow for a more successful and sustainable adoption of lean accounting practices in Vietnamese paper
manufacturing enterprises.
7. Conclusions
Research on the applicability of lean accounting in pulp and paper manufacturing enterprises in Vietnam has yielded
several significant conclusions. First, internal organizational factors clearly play a crucial role in determining the potential for
lean accounting implementation. The research conclusively demonstrated that employee knowledge and skills related to lean
accounting, top management support, and the availability of lean accounting software are key drivers that positively
influence the applicability of lean accounting in these enterprises. This underscores the importance of human capital,
leadership commitment, and technological resources in facilitating the adoption of innovative accounting practices.
Conversely, the study reveals that the complexity of existing accounting systems and production processes act as
significant barriers to the implementation of lean accounting. This finding highlights the challenges that many manufacturing
enterprises face when attempting to transition to more streamlined and efficient accounting practices. This suggests that
companies may need to undertake substantial efforts to simplify and align their current systems and processes with lean
principles before successfully implementing lean accounting.
Interestingly, the research did not find a statistically significant effect of competitive pressure in the industry or
customer demand for cost-effective products on the applicability of lean accounting. This unexpected result challenges some
common assumptions about the drivers of management accounting innovations and suggests that, at least in the context of
the Vietnamese pulp and paper industry, external market forces may not be primary motivators for adopting lean accounting
practices.
Ethical Considerations
The study received informed consent from survey respondents.
Conflict of Interest
The authors declare no conflicts of interest.
Funding
This research did not receive any financial support.
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