Does Intellectual Capital Affect the Competitiveness of Public Accounting Firms in Indonesia?

Abstract

The purpose of this paper is to understand the relationship between Intellectual Capital, Organization Learning, and Competitive Advantage considering Information Technology Investment in Public Accountant Firm. Data were collected from 391 Public Accounting Firms registered in the Ministry of Finance of the Republic of Indonesia as of January 2019. The survey was sent by email and a total of 51 valid questionnaires were obtained and used to test the research model. This paper adopts Statistical Product and Service Solutions (SPSS) and Partial Least Square (PLS) program to test the direct effect and moderating effect of the variables. The result finds that Intellectual Capital and Organization Learning are significant factors in creating a Public Accountant Firm's competitive advantage. The moderating effect of Information Technology Investment on Intellectual Capital and Competitive Advantages is also confirmed. Practical Implications This research can provide benefits for Public Accountant Firms to know the implications of Intellectual Capital, Organization Learning, and Information Technology Investment in improving the Competitive Advantage of a firm.

Human Resources Transformation in the Digitalization Professional Era in North Sumatera

“…Sumatera Utara Province must also be ready to face each of these challenges, where every citizen must produce better performance because the abilities that have been obtained through education and training greatly affect the quality of human resources itself. Because in today's social life, Science and Technology plays an important role and continues to develop and experience many changes in various areas of life in intellectual capital, organizational learning, and investment in information technology in increasing the competitive advantage of a company (Salim, Harta , Shania, & Devie, 2019). To be able to compete with ASEAN countries, Indonesia in general and Sumatera Utara Province in particular must increase research and development that leads to innovation.…”