The Influence of Organizational Culture and Intellectual Capital on the Management Accounting System as well as the Corporate Performance


 
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The Influence of Organizational Culture and Intellectual Capital on the Management Accounting System as well as the Corporate Performance
Gandhi Heryanto, Management Consultant, Indonesia

The above research topic has been conducted among companies listed in the Indonesia Stock Exchange (IDX). The Intellectual Capital is divided into its sub-components: Human, Structural, Social and Technological Capital.
The data used was obtained by using questionnaires distributed to the Board of Directors of the companies listed in IDX by 2014 with a total of 100 companies. Model analysis of the test data is performed by partial least square-structural equation modeling (PLS-SEM) and SPSS.
The results showed that Organizational Culture has significant effect on the Human Capital, Social Capital, Structural Capital, Technological Capital and on the Management Accounting System.
Only two components of the Intellectual Capital, namely Human Capital and Structural Capital have a significant effect on the Management Accounting System.
The Management Accounting System may fully mediate the relationship of Organizational Culture, Human Capital, Structural Capital with Corporate Performance. What I mean with that is the management accounting system in my research model is an intervening or mediating variable between organizational culture, human capital, structural capital with corporate performance. Note that at this stage, it is only proven to have been statistically mediating, because the facts are not supported by theoretical background.
The research shows that Organizational Culture and Intellectual Capital are important elements affecting the use of Management Accounting System for improving the Corporate Performance.
Source: Gandhi Heryanto, "The Influence of Organizational Culture and Intellectual Capital on the Management Accounting System as well as the Corporate Performance", PhD Research, 2015.
 

 
HOW do the Organizational Culture and Intellectual Capital Influence the Management Accounting System and the Corporate Performance?
Jaap de Jonge, Editor, Netherlands
Thanks for sharing this interesting research.
1. To me it does not come as a big surprise that an organizationís culture and its intellectual capital influence its corporate performance.
2. Less obvious is your finding that the management accounting system is playing an intervening or mediating role in 1.
You mention yourself that there is no theoretical background yet to explain this correlation. But perhaps you have some ideas, hints or hypotheses as to what might explain this?
 

 
Hypothesis How Management Accounting System Play a Mediating Role
Gandhi Heryanto, Management Consultant, Indonesia
- Intellectual capital includes structural capital, social capital to create business value and improve performance.
- The relationship between organizational culture and performance is influenced by the way companies establish their culture through specific values, beliefs, and behaviors; as a result a company may perform at a higher level of productivity.
- The relationship between intellectual capital, organizational culture and performance is influenced by the way organization search for and use information such as through management accounting system, which focusing on the provision of more formal control and feedback systems to one that embraces flexibility and supports innovation, creativity and organizational learning.
- From the above description, we hypothezise that the organizational culture and intellectual capital will influence the use of management accounting system (mediating effect) in improving the company performace.
 

 







 

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