Strategic Management Accounting Practices in the Knowledge-Intensive Economy: Evaluating the Role of Intellectual Capital

DOI

10.2991/aebmr.k.211207.013How to use a DOI?

Keywords

Contingency theory; Intellectual Capital; Strategic Management Accounting Practices

Abstract

Globalization, economic volatility, and technical improvements lead to substantial changes in the business landscape due to the transition from the industrial to an information-based economy. Therefore, the study aims to investigate the association of how intellectual capital (IC) can be measured inside the organization in the boundary of strategic management accounting practices (SMAP) in a knowledge-intensive era. Specifically, the primary issue is that if knowledge is a strategic resource, there is a logical relationship between IC and SMAP. However, the impact of intangible resources, particularly knowledge-based assets, has been observed at an extensive literature level, there is difficulty explaining the role of management control systems in managing IC. The article demonstrates it is commonly recognized that IC, whether in the form of knowledge, expertise, competency, positive relationships, or technical capability, is a significant source of organizational sustainability, while much emphasis has been paid to the IC for external reporting purposes, significantly less in internal reporting practices. Based on contingency theoretical assumptions, this study acknowledges social capital (SOIC) in conjunction with traditional IC dimensions, such as human capital (HC), structural capital (SC), and relational capital (RC), to see if companies with a higher degree of IC are more likely to value contemporary management accounting (MA) practices, e.g. performance measurement systems and style of use of information. Additionally, the study combines multifaceted views of IC as a knowledge-based driver, resulting in a more effective method for measuring IC in a comprehensive framework by integrating diverse academic fields because knowledge is not valuable until it is evaluated meticulously. Practically, the proposed model may inspire senior management to demonstrate how knowledge-related assets are managed and measured in businesses and how the resources are strategically aligned with specific management processes to provide real value to the organizations. Therefore, this research leads to a critical emerging topic of IC’s demonstration, emphasizing SMAP’s position and offering future research possibilities.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Marjea Jannat Mohua
AU  - Wan Fadzillah Wan Yusoff
PY  - 2021
DA  - 2021/12/07
TI  - Strategic Management Accounting Practices in the Knowledge-Intensive Economy: Evaluating the Role of Intellectual Capital
BT  - Proceedings of the Conference Towards ASEAN Chairmanship 2023 (T-A-C 23 2021)
PB  - Atlantis Press
SP  - 86
EP  - 93
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211207.013
DO  - 10.2991/aebmr.k.211207.013
ID  - Mohua2021
ER  -