scholarly journals The role of management accounting systems in the development of intellectual capital

2017 ◽  
Vol 18 (2) ◽  
pp. 286-315 ◽  
Author(s):  
Jorge Casas Novas ◽  
Maria do Céu Gaspar Alves ◽  
António Sousa
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Management Accounting ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems ◽  
And Performance

Purpose The purpose of this paper is to examine the role of management accounting systems (MAS) in the development of intellectual capital (IC) – i.e. human capital (HC), structural capital (SC) and relational capital (RC) – and the resultant effects on organizational performance. Design/methodology/approach A questionnaire was developed to conduct a survey of high-level managers of Portuguese companies. The data collected were analyzed through the use of structural equation modeling with AMOS. Findings Statistical support was found for six out of nine hypothesized relationships. The findings confirm the role of MAS in the development of HC and SC. Results also showed positive and statistically significant relationships between the three dimensions of IC, in line with previous research. Finally, results indicated that SC has a positive and significant link with organizational performance, in keeping with some research. Research limitations/implications The estimation procedure allowed only a partial validation of the proposed model because, although positive, the relationships between MAS and RC, between HC and performance and between RC and organizational performance were not statistically significant. Practical implications The study highlights the role of MAS as information networks that collect, process and communicate information that influences the development of IC, as well as networks of relationships that support the establishment of conditions for the creation and integration of organizational knowledge and the development of IC. Originality/value In this research, an arguably more complete framework of the relations between MAS, IC and performance is developed and empirically tested. Despite the existence of some literature addressing the relationship between MAS and IC, this is the first study, of which authors are aware, that focuses specifically on the relationships between MAS and the three dimensions of IC (HC, SC and RC), as well as their effects on organizational performance.

Management accounting systems, enterprise risk management and organizational performance in financial institutions

2014 ◽  
Vol 22 (2) ◽  
pp. 128-144 ◽  
Author(s):  
Siti Zaleha Abdul Rasid ◽  
Che Ruhana Isa ◽  
Wan Khairuzzaman Wan Ismail
Keyword(s):  
Risk Management ◽  
Organizational Performance ◽  
Financial Institutions ◽  
Management Accounting ◽  
Enterprise Risk Management ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems ◽  
Enterprise Risk ◽  
And Control

Purpose – The purpose of this paper is to examine the linkages between management accounting systems (MAS), enterprise risk management (ERM) and organizational performance by examining MAS information characteristics that match ERM implementation and joint effects of MAS and ERM on organizational performance. Design/methodology/approach – The research method involved administering a questionnaire to 106 financial institutions (FIs) in Malaysia. The respondents were chief financial officers or staff members holding the most senior positions in the finance department of the institutions. Findings – The significant findings on the association between ERM and MAS show that implementation of ERM requires the use of sophisticated MAS information. ERM and MAS complement each other as both are integral to decision making, planning and control in an organization. The finding also substantiates the important role of ERM in enhancing non-financial performance. Research limitations/implications – This study covered only MAS as part of sub-control systems in an organization. Future studies could investigate the link between a more comprehensive management accounting and control system and ERM. Furthermore, this study used perceptual measures of MAS, ERM and organizational performance. Practical implications – The regulating body should promote best management practices of sophisticated MAS and ERM among FIs as these practices will create competitive advantage as well as help those institutions comply with regulations. Originality/value – This study has contributed to the body of knowledge on the linkages between MAS, risk management system and organizational performance.

scholarly journals Open innovation in specialized SMEs: the case of supercars

2017 ◽  
Vol 23 (6) ◽  
pp. 1167-1195 ◽  
Author(s):  
Andres Ramirez-Portilla ◽  
Enrico Cagno ◽  
Terrence E. Brown
Keyword(s):  
Open Innovation ◽  
Structural Equation ◽  
Social Performance ◽  
Two Dimensions ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Firm Innovativeness ◽  
And Performance

Purpose The purpose of this paper is to explore the influence that adopting open innovation (OI) has on the innovativeness and performance of specialized small and medium-sized enterprises (SMEs). This paper also examines the adoption of OI within a firm’s practices and models, and within the three dimensions of firm sustainability. Design/methodology/approach Survey data from 48 specialized SMEs manufacturing supercars were analyzed using partial least squares structural equation modeling. SmartPLS software was used to conduct a path analysis and test the proposed framework. Findings The findings suggest that high adoption of OI models tends to increase firm innovativeness. Similarly, the adoption of OI practices has a positive effect on innovativeness but to a lesser extent than OI models. The moderation results of innovativeness further show that OI models and practices can benefit the performance of SMEs. Specifically, two dimensions of performance – environmental and social performance – were found to be greatly influenced by OI. Research limitations/implications Due to parsimony in the investigated model, this study only focuses on OI adoption as practices and models without considering its drivers or other contingency factors. Practical implications This paper could help practitioners in SMEs better understand the benefits of adopting OI to be more innovative but also more sustainable. Originality/value This study contributes to the literature on the role of OI practices and models regarding the dimensions of firm sustainability performance by being the first paper to investigate this relationship in the context of small and medium manufacturers of supercars.

The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Salvador Beltramino ◽  
Domingo Garcia-Perez-de-Lema ◽  
Luis Enrique Valdez-Juarez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Industrial Companies ◽  
Emerging Country ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the intellectual capital of SMEs on innovation and organizational performance in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the Cordoba, Argentina. The data were analyzed by partial least squares–structural equation modeling (PLS–SEM).FindingsThe study provides empirical evidence that the three components of intellectual capital generate positive and significant effects on innovation in processes and products. Structural capital is the component that has the greatest effect on innovation. It also showed a positive and significant relationship between innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes limitations that uncover a path for future. First, the work uses as the only source of information, the consultation at the highest level of the company. Second, the study covered only industrial companies. Future studies should focus on other sectors and countries.Practical implicationsThe results may have important practical implications for SME owners and managers and offer a vision of the influence of intellectual capital on the innovative capacity of the organization.Originality/valueThe value of work lies in establishing the importance of intellectual capital in the environment of an emerging country such as Argentina, given the low level of knowledge that exists in this area.

The structural capital, the innovation and the performance of the industrial SMES

2020 ◽  
Vol 21 (6) ◽  
pp. 913-945 ◽  
Author(s):  
Nicolás Salvador Beltramino ◽  
Domingo García-Perez-de-Lema ◽  
Luis Enrique Valdez-Juárez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Industrial Sector ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the structural capital of SMEs in the capacity of innovation and organizational performance, in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the province of Córdoba Argentina. The data was analyzed by Partial Least Squares Structural Equation Modeling (PLS–SEM).FindingsThe study provided evidence that acquisition of information and knowledge management, organizational culture and structure, systems and processes have positive and significant effects on the innovation capacity of SMEs. Only the communication and cohesion component did not show positive and significant results on it. It also showed a positive and significant relationship between the capacity for innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes some limitations that uncover a path for the development of future lines of research. In the first place, the work focuses on the use of a single source of information, the consultation at the managerial level of the company, without considering other representative variables to measure the capacity for innovation. Second, the study covered only companies in the industrial sector and country. Future studies should focus on other sectors and countries.Practical implicationsThe results of the study can have important practical implications for the owners and managers of SMEs. The results offer a vision of the dimensions of structural capital that most influence the innovative capacity of the organization. This is especially useful given that in the context of Argentina there is a low level of knowledge and structural capital is key to being more competitive. The managers of SMEs can thus increase the innovative potential of the company and favor the acquisition of information and knowledge and improve its processes and systems to contribute to the development of innovation capabilities to make SMEs more competitive.Social implicationsThe results obtained can be useful for those responsible for making public policy decisions, since in the knowledge of the economy to maintain a developed state and nation, it is necessary to include as one of the main issues on the national agenda the improvement of intellectual capital of its people to promote the competitiveness of companies.Originality/valueThe research contributes to the development of intellectual capital literature focused on the generation of innovation and performance in the perspective of SMEs in emerging countries.

scholarly journals The role of knowledge-based networks in the intellectual capital and organizational performance of small and medium-sized enterprises

Kybernetes ◽  
2019 ◽  
Vol 49 (1) ◽  
pp. 116-140
Author(s):  
Ricardo Vinícius Dias Jordão ◽  
Jorge Novas ◽  
Vipin Gupta
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Growth Efficiency ◽  
Three Dimensions ◽  
Future Research ◽  
Social Relevance ◽  
Content Type ◽  
Knowledge Based ◽  
The Relationship

Purpose This paper aims to analyze the role of a knowledge-based network (k-network) in the intellectual capital (IC) and organizational performance of Brazilian small and medium-sized enterprises (SMEs). Design/methodology/approach This paper presents a descriptive, qualitative and applied case study, developed taking into account the theories of strategy, IC, networks and finance to analyze the relationship between k-network and the generation of IC and organizational performance in a multifocal perspective (observed in terms of financial and marketing results, efficiency and efficacy and innovation and competitiveness) in Brazilian SMEs. Findings The findings showed that k-network plays a crucial role in the generation of the IC and improvements in organizational performance in SMEs. In addition, the results revealed the strategic relevance of the relationship between people and enterprises to master the process of creation and sharing information and knowledge in the analyzed network. Taken as a whole, the conclusions demonstrated the establishment of IC (in its three dimensions) as a consequence of the strategic association of SMEs in k-network, as well as the mediation role of IC as a way to promote improvements in organizational performance, considering the observed amelioration in financial results, marketing growth, efficiency, efficacy, innovation and competitiveness. Research limitations/implications This research provides theoretical contributions by broadening knowledge of the practical relationship between k-network, IC and the multifocal perspective of SMEs organizational performance – a relevant and underexplored issue in the literature, offering several avenues for future research. Practical implications The results highlight the economic, political and social relevance of SMEs and the strategic use of k-network to overcome SMEs organizational, financial and managerial difficulties. In such context, analysts, managers, businesspeople and other decision-makers are expected to use this type of network to improve the IC, in its human, relational and structural dimensions, mastering companies’ knowledge and sustainable organizational performance. Originality/value The paper fills a significant research gap, revealing how k-networks can and should be used as a deliberate strategy by SMEs to create, acquire, use, absorb and share information and knowledge, as well as to generate IC, thus providing organizational, financial, innovative and competitive benefits to these enterprises and their network.

scholarly journals Management accounting systems: an organizational competitive performance perspective

2020 ◽  
Vol 27 (6) ◽  
pp. 1843-1874
Author(s):  
Elsa Pedroso ◽  
Carlos F. Gomes ◽  
Mahmoud M. Yasin
Keyword(s):  
Information Systems ◽  
Organizational Performance ◽  
Management Accounting ◽  
Direct Influence ◽  
Business Organizations ◽  
Competitive Performance ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems ◽  
Competitive Environments

PurposeThe purpose of this paper is to explore the impact of the characteristics and roles of management accounting systems (MAS) on today’s business organizations and their management, systems, procedures, people, performance and competitive environments.Design/methodology/approachA survey-based methodology was utilized in this research to gather organizational information relevant to the different facets of the MAS and their operational and strategic practices impact on organizations operating under increasingly uncertain and competitive environments. A structural equation modeling approach was utilized to uncover relevant relationships and associations among relevant variables.FindingsThe findings of this exploratory research revealed a direct influence of MAS on the managerial and organizational performance through the managers’ performance. The results also suggest that MAS is directly influenced by users’ training, and satisfaction, task uncertainty and decentralization of decisions. It was also indirectly influenced by top management support. In addition, the findings also revealed a direct influence of the decentralization of decisions on the managers’ and on organizational performance.Research limitations/implicationsWhile this study addressed important issues that have practical management value, it is limited to a sample from one country. Future studies in different businesses and cultural settings are needed to enhance the theoretical and practical contributions of the findings and conclusions of this study.Practical implicationsThe issues explored in this study are very much relevant to the utilization and design of MAS and their increasing tactical and strategic roles in the management of today’s business organizations. The findings of this study have relevant practical value for managers as they attempt to cope with increasingly competitive environments through the deployment of their existing capabilities and best practices. In this context, the accounting management system has practical utilities that facilitate the control and management of the operations and strategies of the organization.Originality/valueThis research offers practicing management an integrated approach, as they aspire to utilize their organizational MAS to increase the efficiency and effectiveness of their organizations. Integrating the different aspects of management accounting information systems, given their impact on the different aspects of the organization, is needed for the establishment of theoretical research models aiming at the enhancement of the competitive performance of today’s organizations. This study also offers to executives of small and medium enterprises (SMEs) a new multidimensional instrument for assessing the effectiveness of their management information systems, which can help to improve their benchmarking processes.

From knowledge management to organizational performance

2019 ◽  
Vol 32 (1) ◽  
pp. 36-59 ◽  
Author(s):  
Amjad Iqbal ◽  
Fawad Latif ◽  
Frederic Marimon ◽  
Umar Farooq Sahibzada ◽  
Saddam Hussain
Keyword(s):  
Knowledge Management ◽  
Organizational Performance ◽  
Research Universities ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Administrative Personnel ◽  
And Performance

Purpose The purpose of this paper is to empirically investigate the effects of knowledge management (KM) enablers on KM processes in research universities and testing the direct relation between KM processes and OP. This study also proposes to examine the mediating role of intellectual capital (IC) and innovation in the relationship between KM processes and performance of universities. Design/methodology/approach Using a sample of 217 academic and administrative personnel from research universities of Pakistan, the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The results reveal that KM enablers have a significant impact on KM processes. The results also indicate that KM processes influence organizational performance (OP) directly and indirectly through innovation and IC. Practical implications Findings of this study reinforce the corporate experience of KM and suggest how administrators of research universities and higher educational institutions can promote innovation and IC, which in turn enhance OP. Originality/value Despite the augmented importance of KM in higher education institutions or research universities, there is a dearth of studies that investigate the interplay of KM, innovation, IC and OP. This is one of the earliest studies that not only empirically investigate the interaction of KM enablers, KM processes and performance of research universities but also shed insights into the existing literature by simultaneously investigating mediating role of IC and innovation in the underlying relationship.

scholarly journals Performance implication of market orientation and use of management accounting systems

2018 ◽  
Vol 25 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Nguyen Phong Nguyen
Keyword(s):  
Decision Making ◽  
Firm Performance ◽  
Market Orientation ◽  
Management Accounting ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Accounting Systems ◽  
Content Type ◽  
Management Accounting Systems

Purpose Drawing upon the resource-based view and the contingency theory, the purpose of this paper is to build and test a framework of: the interaction between market orientation (MO) and accountants’ participation in strategic decision making; and its subsequent effect on the use of management accounting systems (MASs), which, in turn, enhances firm performance. Design/methodology/approach The hypotheses were empirically tested using partial least square-structural equation modeling with survey data from 171 large business firms in Vietnam. The standardized root mean squared residual value of the composite model was also examined using SmartPLS3 to test the model fit. The marker-variable technique was employed to test common method bias. Findings This study has two key findings: first, the use of MAS (in terms of broad scope, timeliness, aggregation, and integration) mediates the effect of MO on firm performance. Second, the degree of accountants’ participation in strategic decision making elevates the positive relationship between MO and the use of MAS. Originality/value This study is one of the first empirical attempts to test the contingent roles of accountants’ participation in strategic decision making and the use of MAS information in driving performance of market-oriented firms in the context of a transition market.

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