The mediating effect of intellectual capital, management accounting information systems, internal process performance, and customer performance

Abstract

Purpose The purpose of this paper is to examine the mediating effect of intellectual capital (IC), management accounting information systems, internal process performance and customer performance (CP) on the relationship of strategies with financial performance (FP). Design/methodology/approach The population in this research was medium and large manufacturing company business units in Java. The business unit as the unit of analysis in this research is part of the organization that: is responsible for the production and marketing of a product or set of products; is formed by product type; has its own competitors which are different from competitors of other business units or divisions within a parent company; and has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target. Findings An innovation strategy that includes product innovation, process innovation and technology has an impact on FP if there is a good internal process performance, reliable management accounting information system and good CP. The internal process performance, which includes operations management processes, customer management processes, innovation processes and regulatory and social processes, optimizes the relationship of the strategy with FP. In this study, IC does not affect CP and internal process performance, nor does the management accounting information system affect FP. However, information systems affect FP through internal process performance and CP. Originality/value The originalities of this study are: the use of the continuous innovation strategy in an integrated manner between product innovation and process and information technology – this has never been conducted by other researchers, especially in Indonesia; the use of IC, management accounting information systems, internal process performance and CP as mediating variables; the use of an integrative approach by including variables of IC, management accounting information systems and non-FP as contextual variables related to contingency approaches that have never been conducted in previous research; the modeling of new related concepts with the one developed in the balanced scorecard; and using single mediating and multiple mediating on the influence of sustainable innovation strategies on FP.

Management accounting systems: an organizational competitive performance perspective

“…In the literature, several relationships between the information provided by the MAS and other business variables have been studied. In some studies, information dimensions are used as dependent variables (Chenhall and Morris, 1986;Bouwens and Abernethy, 2000;Chiou, 2011;Ern, Abdullah and Yau, 2016;Ghorbel, 2019), in other studies as independent variables (Chang, Chang and Paper, 2003;Agbejule, 2005;Mollanazari and Abdolkarimi, 2012;Esparza-Aguilar, García-Pérez-De-Lema and Duréndez, 2016), and in some other studies, they are both dependent and independent variables (Soobaroyen and Poorundersing, 2008;Etemadi et al, 2009;Hammad, Jusoh and Ghozali, 2013;Ismail, Isa and Mia, 2018;Ghasemi et al, 2019;Hariyati, Tjahjadi and Soewarno, 2019).…”

“…This process includes all aspects of the management cycle of a business organization (Agbejule, 2011). Throughout the literature review, several studies which evaluated different types of performance were found, including the following performance dimensions: production performance (Choe, 2004); financial performance (Jansen, Van den Bosch and Volberda, 2006;Macinati and Anessi-Pessina, 2014;Hariyati and Tjahjadi, 2018;Hariyati, Tjahjadi and Soewarno, 2019); departmental performance (Williams and Seaman, 2002); the nonfinancial performance of the production (Abdel-Maksoud, 2004; Abdel-Maksoud et al, 2010); managers' performance (Chong, 2004;Agbejule, 2005;Sharma, Jones and Ratnatunga, 2006;Hall, 2008;Soobaroyen and Poorundersing, 2008;Hammad, Jusoh and Ghozali, 2013;Ghasemi et al, 2016Ghasemi et al, , 2019Nguyen et al, 2017); global performance (Esparza-Aguilar, García-Pérez-De-Lema and Duréndez, 2016); and organizational performance (Mendoza and Bescos, 2001;Ambe and Sartorius, 2002;Guilding, 2008, 2012;Krumwiede, Suessmair and MacDonald, 2008;Cleary, 2009;Tontiset and Ussahawanitchakit, 2010;Agbejule, 2011;Tsamenyi, Sahadev and Qiao, 2011;Tuanmat and Smith, 2011;Hoque, 2011;Ismail, Isa and Mia, 2018). In this context, the following hypotheses are presented:…”

A Stress Relief App Intervention for Newly Employed Nursing Staff: Quasi-Experimental Design

“…Information technology usage can have a positive effect on performance of organizations, from commercial, manufacturing, to financial ones [18][19][20]. Similarly, hospitals and clinics have introduced information technology (eg, electronic medical records) with rapid dissemination, processing, and storage capabilities to improve upon the conventional manual workflow and reduce the number of flaws and errors [21][22][23].…”

In search of intangible connections: intellectual capital, performance and quality of life in higher education institutions

“…To improve organisational performance, management of tangible and intangible resources must be more professional (Hariyati et al 2019). IC represents a combination of those intangible resources (e.g.…”