Purpose The purpose of this paper is to empirically explore how the effect of intellectual capital (IC) on organizational performance is indirect and mediated through performance measurement (PM) systems. Design/methodology/approach Data were collected from a survey of 128 chief financial officers of Iranian publicly listed companies. Hypotheses were tested using partial least squares regression, a structural modeling technique which is appropriate for highly complex predictive models. Findings Results from the structural model indicate that, in general, companies with a higher level of IC place a premium on the balanced use of PM systems in a diagnostic and interactive style. Furthermore, the results provide some evidence that IC is indirectly associated with organizational performance through the intervening variable of the balanced use of interactive and diagnostic PM systems. Practical implications This study sheds light on the issue of how senior management should use PM systems to take full advantage of intellectual assets which could lead to improved organizational performance. Originality/value This is the first study of its kind to synthesize a model which examines IC, PM systems, and organizational performance. Although the effect of different types of intangible assets on performance has been substantially examined in the literature, less effort has been devoted to understanding the role of PM systems in leveraging an organization’s IC.

Purpose-The purpose of this paper is to empirically explore intellectual capital (IC) from a multidimensional perspective and its relationship with organizational performance (OP) within Iranian public listed companies. Design/methodology/approach-Survey data from Chief Financial Officers in 128 companies within Tehran Stock Exchange were collected and analyzed using partial least squares regressions. Findings-The findings suggest that organizational culture plays a significant role in developing human capital and structural capital while trust is a major determinant of all the IC components, namely human, structural, relational, and social capital. The results also confirm that the investment in human, structural, and relational capital could potentially bring about OP improvement in Iranian public listed companies. Practical implications-A synthesis of various sub-elements of IC supports executives in detecting, capturing, and assessing the different kinds of knowledge resources which must be taken into consideration individually for maximizing OP. Such multidimensional and comprehensive conceptualization of IC would assist organizations to remedy the inefficiency in the exploitation of IC and thereby providing a robust system in order to capture and measure IC more effectively. Originality/value-This study combines literature on IC across diverse academic fields. The multidimensional conceptualization of IC with four sub-dimensions (i.e. human, structural, relational, and social capital) as well as supplementing two antecedent constructs (trust and organizational culture) offer a more systematic manner to synthesize several knowledge-based drivers toward performance which have not been addressed simultaneously in a comprehensive framework.

Taking inspiration from the natural resource-based view of the firm and resource orchestration theory, we propose a new approach, that is, natural resource orchestration, to investigate how green intellectual capital and environmental management accounting stimulate environmental performance. Using survey data collected from 106 chief financial officers (CFOs) of publicly listed companies in Iran, findings show

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Research question/issue The existing literature documents that the functional expertise of Chief Executive Officers (CEOs) in finance reduces poor performance risk, improves financial reporting quality, and mitigates audit risk. In this study, we examine the association between CEOs' financial background and internal control weaknesses (ICWs). Research findings/insights Using a sample of Iranian listed companies for the period 2007–2017, we find a significant negative association between CEOs with financial expertise and ICWs. Furthermore, we show that the negative association between CEO financial expertise and ICWs is stronger if the CEO is recruited from inside the firm. Our main results are robust after controlling for the potential selection issue, random effects at the firm level, and the impact of the new Iranian internal control regulations. Moreover, our results remain unchanged after controlling for other CEO characteristics, audit committee characteristics, audit fees, and using an alternative measure of financial expertise. Theoretical/academic implications Our study contributes to the extant literature by examining the association between CEOs' financial background and ICWs, a theme that remains largely unexplored in previous research. We also extend the literature on CEO succession origin. Practitioner/policy implications This study has important implications for regulators regarding the improvement of financial reporting quality and the effectiveness of internal controls, especially in the emerging markets. Particularly, our findings may be of benefit to auditors when assessing the risks regarding their clients' material weaknesses, as well as to shareholders and boards of directors when hiring a new CEO.

Purpose The pivotal role of knowledge management (KM) and its extensive implications have been debated in the academic literature with insufficient focus on its link to particular organizational control mechanisms such as performance measurement systems (PMS). To bridge this gap and building on resource orchestration theory, this paper aims to investigate the relationships between KM factors, PMS and corporate performance. Design/methodology/approach Based on a survey data set of 92 listed companies in Iran, the framework and hypotheses were tested using structural equation modeling (SEM) based on partial least squares (PLS). Findings The SEM-PLS results indicate that knowledge assets are significantly associated with both PMS and corporate performance while knowledge process capabilities (KPC) are not significantly associated with PMS and corporate performance. This study also shows that PMS mediates the relationship between knowledge assets and corporate performance. Practical implications The results suggest that the use of appropriate management control systems plays an effective role in synchronizing, aligning and orchestrating a company’s various knowledge resources, which, in turn, can lead to superior overall performance. Originality/value Building on a unique synthesis of resource orchestration theory and the knowledge-based view of the firm, the results of this study provide the first empirical evidence on how PMS intervenes in the relationship between knowledge resources (knowledge assets and KPC) and corporate performance.

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This study relies on a unique synthesis of ambidexterity theory and the natural resource orchestration approach to investigate how green intellectual capital elements, namely green human, structural, and relational capital, along with ambidextrous green innovation, trigger a synergy in favor of environmental performance. In particular, this paper primarily aims to test the mediating role of ambidextrous green innovation in the relationship between green intellectual capital and environmental performance. Based on a survey of 105 Iranian public listed companies, the results indicate that green intellectual capital elements are not directly associated with environmental performance. Instead, they influence environmental performance only through the channel of ambidextrous green innovation as a mediating variable. This is the first study to simultaneously embed the resource orchestration theory in the green intellectual capital and ambidexterity literature. The findings of the current study offer new insights into the issue of how organizations gain maximum benefit from the orchestration of their various green assets and capabilities, including green intellectual capital and ambidextrous green innovation.