Knowledge Management and Organizational Performance: The Neglected Role of Institutional Accounting Practices

  • Ozavize Freida Ayodele Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia
  • Liu Yao Faculty of Management Engineering, Huaiyin Institute of Technology, Huai’an Jiangsu, China
  • Hasnah Binti Haron Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Bandar Baru Nilai, Negeri Sembilan, Malaysia
  • Hooi-Cheng Eaw Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia
Keywords: Knowledge management capability, institutional management accounting practices, organization performance, knowledge-based organization

Abstract

The study highlights the part of institutional accounting practices in the relationship between specified KM capabilities and institutional performance. A theoretical model was tested based on the insight from literature and knowledge-based theory (KBT). The data collected from a survey of 322 staff in knowledge-based organizations (KBOs) were analyzed to test the extended model using partial least squares structural equation modeling approach. The result depicts that greater levels of specific KM infrastructure and process capability would positively influence institutional accounting management practices and, consequently organizational performance. Unlike KM process capability, KM infrastructure capability has a positive and significant impact on organizational performance. The study provides a new understanding to management and practice on the vital role played by institutional management accounting practice in KM success in Malaysia. The research offers fresh insight into further studies in diverse settings. The research is insightful as it deviates from the over-researched context in KM literature to extricate the role of accounting in the business KM strategy.

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Published
2021-12-17
How to Cite
Ozavize Freida Ayodele, Liu Yao, Hasnah Binti Haron, & Hooi-Cheng Eaw. (2021). Knowledge Management and Organizational Performance: The Neglected Role of Institutional Accounting Practices. International Journal of Business and Society, 22(3), 1639-1655. https://doi.org/10.33736/ijbs.4327.2021