Analysis of Strategy Strengthening Based on Managerial Accounting as a Determining Factor of the Sustainability of Digital Business Models

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FORMOSA NEWS - Lampung - Managerial Accounting is Key to the Sustainability of Digital Business Models in Indonesia's Consumer Sector. These findings were revealed in research conducted by Dina Nadiyah Faiqoh, Harto, and Lulut Ismaya from Nahdlatul Ulama University Lampung, published in 2026 in the Asian Journal of Management Analytics. 

The study shows that managerial accounting plays a strategic role in strengthening the sustainability of digital business models. This study analyzes the financial performance of consumer good and trade companies listed on the Indonesia Stock Exchange throughout 2024, and confirms that the competitiveness of digital businesses is determined not only by technology, but also by the quality of financial management and strategic decision-making

Background: Accounting meets digital strategy

Managerial accounting has traditionally been associated with cost control and budgeting. In today’s digital economy, its role has expanded. Financial data is increasingly used to guide pricing strategies, investment decisions, and platform-based business models.

The authors situate their analysis within this broader shift. They highlight that many companies still struggle to integrate financial reports into strategic decisions, even though digital tools now allow real-time analytics and clearer performance monitoring. As competition intensifies both domestically and globally this gap can undermine sustainability.

How the research was conducted

The researchers used quantitative analysis based on secondary financial data from companies in the consumer goods and trading sectors listed on the Indonesia Stock Exchange in 2024. Instead of surveys or interviews, the study examined published financial reports and focused on key managerial accounting indicators, including:

• Debt-to-Equity Ratio (DER) to assess leverage.
• Free Cash Flow (FCF) to evaluate liquidity and operational strength.
• Interest Coverage Ratio (ICR) to measure a company’s ability to meet debt obligations.

By comparing these ratios across multiple issuers, the authors assessed how different financial strategies influenced stability, risk, and growth potential.

 Key findings: Different strategies, different risks

The results reveal mixed financial performance across companies, underscoring that sustainability depends on how accounting information is used strategically.

Key observations include:

Conservative but strong companies

Firms such as TCID, RALS, and SONA showed low leverage and very high liquidity. Their default risk was minimal, and interest obligations were easily covered. However, the study notes that overly cautious capital structures may limit growth opportunities.

Efficient and balanced performers

UNTR, MAPI, and MIDI demonstrated balanced debt levels, strong interest coverage, and positive cash flow. These firms were identified as well-positioned for stable, long-term growth if profitability and cash efficiency are maintained.

High-risk, high-reward profiles

KOBX and RANC operated with high leverage but still maintained strong cash flow and earnings. The research emphasizes that while debt was used productively, these companies face greater vulnerability if economic conditions deteriorate.

Warning signs in solvency

ECII displayed a healthy capital structure but weak interest coverage. The authors highlight this as an early warning that profitability must improve to avoid future solvency problems.

Overall, the findings show that financial strength alone is not enough. What matters is how managers interpret accounting data and translate it into strategic action.

Implications for business and policy

The study carries several real-world implications:

For business leaders:

Managerial accounting should be embedded into strategic planning, not treated as a reporting formality. Digital businesses benefit most when cash flow, leverage, and profitability data directly inform expansion, innovation, and risk management decisions.

For investors:

Financial ratios such as FCF and ICR provide critical signals about sustainability, especially in digital-facing companies that may grow quickly but accumulate hidden risks.

For policymakers and regulators:

Improving transparency in financial and non-financial disclosures including ESG indicators can strengthen market confidence and support healthier capital allocation.

For educators and practitioners:

The findings reinforce the need to teach accounting as a strategic tool, aligned with digital transformation rather than isolated from it.

As the authors note, companies facing global competition must also invest in product innovation, supply chain efficiency, and digital technology in management and marketing to remain competitive.

Author profiles

Dina Nadiyah Faiqoh, S.E., M.Ak., Lecturer at Universitas Nahdlatul Ulama Lampung.

Expertise: managerial accounting, financial strategy, and business sustainability.

Harto, S.E., M.M., Lecturer at Universitas Nahdlatul Ulama Lampung. 

Expertise: financial management and strategic decision-making.

Lulut Ismaya, S.E., M.M., Lecturer at Universitas Nahdlatul Ulama Lampung. 

Expertise: digital business models and management accounting.

Source

Dina Nadiyah Faiqoh, Harto, Lulut Ismaya. Analysis of Strategy Strengthening Based on Managerial Accounting as a Determining Factor of the Sustainability of Digital Business Models. Asian Journal of Management Analytics, Vol. 5 No. 1, hlm. 171-180.2026.

DOI : https://doi.org/10.55927/ajma.v5i1.16117  

URL Resmi: https://journal.formosapublisher.org/index.php/ajma