Using the Global Management Accounting Principles GMAP© to achieve industrial sustainability considering Industry 4.0 and smart manufacturing - a case study

Objective: The main objective of this research is to evaluate the use of management accounting approach based on global principles issued by both the American Institute of Certified Public Accountants (AICPA) and the Certified Institute of Management Accountants in England (CIMA). This approach aims to help the management of industrial companies keep pace with the technology of the Fourth Industrial Revolution and smart manufacturing to achieve industrial sustainability. The research also aimed to present a realistic case study by analyzing the current situation of an Egyptian industrial company listed on the Egyptian Stock Exchange, which is GB Auto, because it is technologically advanced and has integrated financial reports and sustainability reports. The aim of the case study was to determine the extent of the development of the concept of industrial sustainability in Egypt and the extent of the development of management accounting practices and techniques and their relationship to achieving sustainability.
Design and Methodology: The first section of this research is designed on a deductive theoretical methodology to clarify the general framework for the introduction of global principles of management accounting, and its importance in achieving industrial sustainability. Then the researcher clarifies the concept and data of both Industry 4.0 and smart manufacturing to identify the challenges facing industrial companies considering the Fourth Industrial Revolution, and the extent to which this is reflected on the management accountant, his competencies, management accounting techniques and practices. As for the second section of the research, it relied on the realistic method known as the case study method. Where the researcher designed a test study to study the situation in that company during the period from 2016 to 2020.
Findings and recommendations: The study found the importance of using the approach of the international principles of management accounting in industrial companies to raise the level of industrial sustainability, especially considering Industry 4.0 and smart manufacturing. The study recommended the necessity of developing the management accountant by acquiring the greatest number of competencies, skills and knowledge stipulated in the Competencies Framework in 2019, in addition to the importance of being a partner in formulating the strategy and evaluating performance. All innovative management accounting techniques, tools and practices must be applied to achieve industrial sustainability.
Originality and addition: This research establishes a new approach in the accounting literature, which is the Global Management Accounting Principles GMAP© Approach, where it provides a detailed explanation of the global principles of management accounting as the basis on which this approach is built. The research also reviews the three main axes of applying this approach, which are represented in the framework of the competencies of the management accountant, the role of the management accountant in helping to build strategy and performance measurement, and finally the application of innovative practices of management accounting. The research also provides a realistic model for a company listed on the Egyptian Stock Exchange to guide it in expanding the scope of data in future studies to generalize the results.