Intellectual capital, management accounting practices and corporate performance Perceptions of managers

Intellectual capital, management accounting practices and corporate performance Perceptions of... Purpose – The purpose of the paper was to examine whether, and in what way, managers perceive that the level and shape of intellectual capital (IC) within firms influences management accounting practice, specifically, performance measurement, planning and control, capital budgeting, and risk management. It also explores whether such firms are better able to respond to unanticipated economic and market changes and achieve relatively higher performance within their sector. Design/methodology/approach – The paper is based on the results of a study conducted in Malaysia through a questionnaire survey in 119 large companies with varying levels of IC and selected interviews with both accounting and non‐accounting executives in a subset of them. Findings – The findings in the paper suggest some evolution in management accounting practices for firms investing heavily in IC. The findings are discussed and further explored through interviews in some of the firms analysed. Research limitations/implications – The limitations of survey research in this paper are acknowledged, however these are ameliorated by confirmatory insights from the interviews. Further research could be carried out using more extensive case studies in companies, perhaps longitudinally, or undertaken using sector focused surveys. Practical implications – It is important to show in the paper that management accounting systems reflect the strategic orientation of the companies concerned. Where a greater focus on intangibles and intellectual capital occurs it may require a different emphasis on management accounting practices compared to companies where they do not feature strongly. It is important that management recognise and act on this in order to improve corporate performance. Originality/value – The paper shows that it is widely recognised that (IC), whether in the form of knowledge, experience, professional skill, good relationships, or technological capacity is a major source of corporate competitive advantage. Whilst the literature places considerable attention on the valuation, measurement and reporting of IC for external reporting purposes, far less attention has so far been given to the implications of IC for managerial accounting practice. This paper addresses this omission. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Accounting, Auditing & Accountability Journal Emerald Publishing

Intellectual capital, management accounting practices and corporate performance Perceptions of managers

Loading next page...
 
/lp/emerald-publishing/intellectual-capital-management-accounting-practices-and-corporate-RqFoB0IJsM
Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
0951-3574
DOI
10.1108/09513570710762575
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of the paper was to examine whether, and in what way, managers perceive that the level and shape of intellectual capital (IC) within firms influences management accounting practice, specifically, performance measurement, planning and control, capital budgeting, and risk management. It also explores whether such firms are better able to respond to unanticipated economic and market changes and achieve relatively higher performance within their sector. Design/methodology/approach – The paper is based on the results of a study conducted in Malaysia through a questionnaire survey in 119 large companies with varying levels of IC and selected interviews with both accounting and non‐accounting executives in a subset of them. Findings – The findings in the paper suggest some evolution in management accounting practices for firms investing heavily in IC. The findings are discussed and further explored through interviews in some of the firms analysed. Research limitations/implications – The limitations of survey research in this paper are acknowledged, however these are ameliorated by confirmatory insights from the interviews. Further research could be carried out using more extensive case studies in companies, perhaps longitudinally, or undertaken using sector focused surveys. Practical implications – It is important to show in the paper that management accounting systems reflect the strategic orientation of the companies concerned. Where a greater focus on intangibles and intellectual capital occurs it may require a different emphasis on management accounting practices compared to companies where they do not feature strongly. It is important that management recognise and act on this in order to improve corporate performance. Originality/value – The paper shows that it is widely recognised that (IC), whether in the form of knowledge, experience, professional skill, good relationships, or technological capacity is a major source of corporate competitive advantage. Whilst the literature places considerable attention on the valuation, measurement and reporting of IC for external reporting purposes, far less attention has so far been given to the implications of IC for managerial accounting practice. This paper addresses this omission.

Journal

Accounting, Auditing & Accountability JournalEmerald Publishing

Published: Jul 31, 2007

Keywords: Intellectual capital; Management accounting; Malaysia

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off