Abstract
This study examines the effects of adopting Strategic Management Accounting (SMA) technique and entrepreneurial orientation (EO) on Local authorities (LAs) performance. Additionally, the study explores the moderating effect of EO on the relationship between SMA practices and performance. A questionnaire instruments was designed and distributed to sample senior managers in all 144 LAs in Malaysia. Survey results reveal strong positive main effects and interaction effects of SMA technique use and EO on organization's performance measured in term of service quality and financial performance. The results have implications for both federal government policies towards LAs and LAs management practices in aligning specific organizational strategies to bring about improved performance.