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

Accounting, Auditing and Accountability Journal

Volumn 20, Issue 4, 2007, Pages 522-548

  Tayles, Mike ^a   Pike, Richard H ^b   Sofian, Saudah ^c  

^a UNIVERSITY OF HULL   (United Kingdom)

^b BRADFORD UNIVERSITY SCHOOL OF MANAGEMENT   (United Kingdom)

^c UNIVERSITI TEKNOLOGI MALAYSIA   (Malaysia)

Author keywords

Intellectual capital; Malaysia; Management accounting

Indexed keywords

EID: 34547662859     PISSN: 09513574     EISSN: None     Source Type: Journal    
DOI: 10.1108/09513570710762575     Document Type: Article

References (107)

1. Abdel-Khalid, A.R. (2003), "Self-sorting, incentive compensation and human capital assets", European Accounting Review, Vol. 12 No. 4, pp. 661-97.
2. Abeysekera, I. and Guthrie, J. (2004), "Human capital reporting in a developing nation", British Accounting Review, Vol. 36 No. 3, pp. 251-68.
3. Aharoni, Y. (1966), The Foreign Investment Decisions Process, Harvard Graduate Business School, Boston, MA.
4. Amir, E. and Lev, B. (1996), "Value relevance of non-financial information: the wireless communications industry", Journal of Accounting and Economics, Vol. 22 Nos 1-3, pp. 3-30.
5. Amir, E., Lev, B. and Sougiannis, T. (2003), "Do financial analysts get intangibles?", European Accounting Review, Vol. 12 No. 4, pp. 635-59.
6. Armstrong, P., Marginson, P., Edwards, P. and Purcell, J. (1996), "Budgetary control and the labour force: findings from a survey of large British companies", Management Accounting Research, Vol. 7 No. 1, pp. 1-23.
7. Atkinson, A.A., Banker, R.D., Kaplan, R.S. and Young, S.M. (1995), Management Accounting, Prentice-Hall, Englewood Cliffs, NJ.
8. Barney, J.B. (2001), "Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view", Journal of Management, Vol. 27 No. 6, pp. 643-50.
9. Barsky, N.P. and Bremser, W.G. (1999), "Performance measurement, budgeting and strategic implementation in the multinational enterprise", Managerial Finance, Vol. 25 No. 2, pp. 3-17.
10. Bontis, N. (1998), "Intellectual capital: an exploratory study that develops measures and models", Management Decision, Vol. 36 No. 2, pp. 63-76.
11. Botosan, C. (1997), "Disclosure level and the cost of equity", The Accounting Review, Vol. 72 No. 3, pp. 323-49.
12. Bourne, M., Mills, J., Wilcox, M., Neely, A. and Platts, K. (2000), "Designing, implementing and updating performance measurement systems", International Journal of Operations & Production Management, Vol. 20 No. 7, pp. 754-71.
13. Bower, J.L. (1970), Managing the Resource Allocation Process: A Study of Corporate Planning and Investment, Harvard University Press, Boston, MA.
14. Bröcheler, V., Maijoor, S. and Witteloostuijn, A. (2004), "Auditor human capital and audit firm survival: the Dutch audit industry in 1930-1992", Accounting, Organizations and Society, Vol. 29 No. 7, pp. 627-46.
15. Bukh, P.N. (2003), "The relevance of intellectual capital disclosure: a paradox", Accounting, Auditing & Accountability Journal, Vol. 16 No. 1, pp. 49-56.
16. Bukh, P.N., Larsen, H.T. and Mouritsen, J. (2001), "Constructing intellectual capital statements", Scandinavian Journal of Management, Vol. 17 No. 1, pp. 87-108.
17. Bunce, P., Fraser, R. and Woodcock, L. (1995), "Advanced budgeting: a journey to advanced management systems", Management Accounting Research, Vol. 6 No. 3, pp. 253-65.
18. Carr, C. and Tomkins, C. (1996), "Strategic investment decisions: the importance of SCM. A comparative analysis of 51 case studies in UK, US and German companies", Management Accounting Research, Vol. 7 No. 2, pp. 199-217.
19. Chaminade, C. and Roberts, H. (2003), "What it means is what it does: a comparative analysis of implementing intellectual capital in Norway and Spain", European Accounting Review, Vol. 12 No. 4, pp. 733-51.
20. Churchill, G.A. (1979), "A paradigm for developing better measures for marketing constructs", Journal of Marketing Research, Vol. 16, February, pp. 64-73.
21. CIMA (2001), "Managing the intellectual capital within today's knowledge-based organisations", Technical Briefing, CIMA, London.
22. Collier, P. (2001), "Valuing intellectual capital in the police", Accounting, Auditing & Accountability Journal, Vol. 14 No. 4, pp. 437-55.
23. Copeland, T. and Antikarov, V. (2005), "Real options: meeting the Georgetown challenge", Journal of Applied Corporate Finance, Vol. 17 No. 2, pp. 32-51.
24. Derregia, M. and Chittenden, F. (2004), Capital Investment Decision-Making: Some Results from Studying Entrepreneurial Businesses, Institute of Chartered Accountants in England and Wales, London.
25. Diamond, D. and Verrechia, R. (1991), "Disclosure, liquidity and the cost of capital", The Journal of Finance, Vol. 41 No. 4, pp. 1325-59.
26. DiMaggio, P.J. and Powell, W.W. (1983), "The iron cage revisited: institutional isomorphism in organisational fields", American Sociological Review, Vol. 48 No. 2, pp. 147-60.
27. Dooley, E. (2000), "Intellectual capital in the software industry: an empirical test", PhD dissertation, Business Administration, University of Washington, Washington, DC.
28. Eccles, R., Herz, R., Keegan, E. and Phillips, D. (2001), The Value Reporting Revolution: Moving Beyond the Earnings Game, John Wiley and Sons, New York, NY.
29. Edvinsson, L. and Malone, M.S. (1997), Intellectual Capital: The Proven Way to Establish Your Company's Real Value By Measuring Its Hidden Brainpower, Judy Piatkus, London.
30. Edvinsson, L. and Sullivan, P. (1996), "Developing a model for managing intellectual capital", European Management Journal, Vol. 14 No. 4, pp. 356-64.
31. Fanning, J. (2000), 21st Century Budgeting, The Institute of Chartered Accountants in England and Wales, London.
32. Financial Accounting Standards Board (2001), Business and Financial Reporting: Challenges from the New Economy, Steering Committee Report, Financial Accounting Standards Board, Norwalk, CT.
33. Garcia-Meca, E., Parra, I., Larran, M. and Martinez, I. (2005), "The explanatory factors of intellectual capital", European Accounting Review, Vol. 14 No. 1, pp. 63-9.
34. Grojer, J. and Johanson, U. (1998), "Current developments in human resource costing and accounting. Reality present, researchers absent", Accounting, Auditing and Accountability Journal, Vol. 11 No. 4, pp. 495-505.
35. Guilding, C., Cravens, K. and Tayles, M. (2000), "An international comparison of strategic management accounting practices", Management Accounting Research, Vol. 11 No. 1, pp. 113-35.
36. Guthrie, J. (2000), The Management, Measurement and the Reporting of Intellectual Capital, Chartered Institute of Management Accountants, London.
37. Guthrie, J., Petty, R. and Johanson, U. (2001), "Sunrise in the knowledge economy", Accounting, Auditing & Accountability Journal, Vol. 14 No. 4, pp. 365-82.
38. Hair, J.F., Anderson, E.A., Tatham, R.L. and Black, W.C. (1998), Multivariate Data Analysis, 5th ed., Prentice Hall, Englewood Cliffs, NJ.
39. Hansen, S.C., Otley, D.T. and van der Stede, W.A. (2003), "Practice developments in budgeting: an overview and academic perspective", Journal of Management Accounting Research, Vol. 15, pp. 95-116.
40. Healey, P., Palepu, K. and Hutton, A. (1999), "Stock performance and intermediation changes surrounding sustained increases in disclosure", Contemporary Accounting Research, Vol. 16 No. 3, pp. 485-520.
41. Holland, J. (2003), "Intellectual capital and the capital market, organisation and competence", Accounting, Auditing & Accountability Journal, Vol. 16 No. 1, pp. 39-48.
42. Hope, J. and Fraser, R. (1997), "Beyond budgeting... breaking through the barrier to 'the third wave'", Management Accounting, pp. 20-3, December.
43. Hope, J. and Fraser, R. (1999), "Measuring performance in the new organisational model", Management Accounting, June, pp. 22-3.
44. Hope, J. and Fraser, R. (2001), "Figures of hate", Financial Management, February, pp. 22-5.
45. Hopwood, A.G. (1973), An Accounting System and Managerial Behaviour, Saxon House, Lexington, MA.
46. Irani, Z., Ezingeard, J.N. and Grieve, R.J. (1998), "Costing the true costs of IT/IS investments in manufacturing: a focus during management decision-making", Logistics Information Management, Vol. 11 No. 1, pp. 38-43.
47. Ittner, C. and Larcker, D. (1998), "Are non-financial measures leading indicators of financial performance? An analysis of customer satisfaction", Journal of Accounting Research, supplement, Vol. 26, pp. 1-35.
48. Jensen, M.C. (2001), "Corporate budgeting is broken - let's fix it", Harvard Business Review, November, pp. 94-101.
49. Johanson, U., Martensson, M. and Skoog, M. (2001), "Mobilising change through the management control of intangibles", Accounting Organisations and Society, Vol. 26 Nos 7-8, pp. 715-33.
50. Kaplan, R.S. and Norton, D.P. (1996), The Balanced Scorecard - Translating Strategy into Action, Harvard Business School Press, Boston, MA.
51. Kaplan, R.S. and Norton, D.P. (2004), The Strategy-focused Organisation, Harvard Business School Press, Boston, MA.
52. Klein, D.A. and Prusak, L. (1994), "Characterizing intellectual capital", working paper, Centre for Business Innovation, Ernst & Young, London.
53. Leuz, C. and Verrechia, R. (2000), "The economic consequences of increased disclosure", Journal of Accounting Research, Vol. 38 No. 3, pp. 91-124.
54. Lev, B. (1992), "Information disclosure strategy", California Management Review, Vol. 34 No. 4, pp. 9-32.
55. Lev, B. (2001), Intangibles: Management, Measurement and Reporting, The Brookings Institution, Washington, DC.
56. Lev, B. and Zarowin, N. (1999), "The boundaries of financial reporting and how to extend them", Journal of Accounting Research, Vol. 37 No. 2, pp. 353-85.
57. Lipe, M.G. and Salterio, S.E. (2000), "The balanced scorecard: judgmental effects of common and unique performance measures", The Accounting Review, Vol. 75 No. 3, pp. 283-98.
58. Lovero, E. (2000), "The strategic impact of quality and relative market share on intellectual capital deployment and shareholder value maximisation: an empirical study", PhD dissertation, Graduate College, Nova/Southeastern University, Ft Lauderdale, FL.
59. Lynn, B. (1998), "Intellectual capital", CMA Magazine, pp. 10-15, February.
60. Marginson, D. and Ogden, S. (2005), "Coping with ambiguity through the budget: the positive effects of budgetary targets on managers' budgeting behaviours", Accounting, Organisation and Society, Vol. 30 No. 5, pp. 453-6.
61. Marr, B. and Chatzkel, J. (2004), "Intellectual capital at the crossroads: managing, measuring and reporting of IC", Journal of Intellectual Capital, Vol. 5 No. 2, pp. 224-9.
62. Marr, B., Schiuma, G. and Neely, A. (2004), "The dynamics of value creation: mapping your intellectual performance drivers", Journal of Intellectual Capital, Vol. 5 No. 2, pp. 312-25.
63. Meritum, J. (2002) in Canibano, L., Sanchez, P., Garcia-Ayuso, M. and Chaminade, C. (Eds), Guidelines for Managing and Reporting on Intangibles, Fundación Airtel Móvil, Madrid, available at: www.eu-know.net.
64. Mouck, T. (2000), "Beyond Panglossian theory: strategic capital investing in a complex adaptive world", Accounting Organizations and Society, Vol. 25 No. 3, pp. 261-83.
65. Mouritsen, J. (1998), "Driving growth: economic value added versus intellectual capital", Management Accounting Research, Vol. 9 No. 4, pp. 461-82.
66. Mouritsen, J. and Larsen, H.T. (2005), "The second wave of knowledge management: the management control of knowledge through intellectual capital information", Management Accounting Research, Vol. 16 No. 3, pp. 371-94.
67. Mouritsen, J., Larsen, H.T. and Bukh, P.N.D. (2001a), "Intellectual capital and the 'capable firm': narrating, visualising and numbering for managing knowledge", Accounting, Organisation and Society, Vol. 26 Nos 7-8, pp. 735-62.
68. Mouritsen, J., Larsen, H.T. and Bukh, P.N. (2001b), "Valuing the future: intellectual capital supplements at Skandia", Accounting, Auditing & Accountability Journal, Vol. 14 No. 4, pp. 399-422.
69. Mouritsen, J., Larsen, H.T. and Bukh, P.N. (2005), "Dealing with the knowledge economy: intellectual capital versus balanced scorecard", Journal of Intellectual Capital, Vol. 6 No. 1, pp. 8-27.
70. Neely, A. (1998), Measuring Business Performance, Economist Books, London.
71. Neely, A., Adams, C. and Kennerley, M. (2002), The Performance Prism: The Scorecard for Measuring and Managing Business Success, Financial Times/Prentice Hall, London.
72. Neil, D.J. and Hickey, D.A. (2001), The Option Value of Investment in R&D. Valuations of Intangible Assets in Global Operations, Quorum Books, London.
73. Nonaka, I. and Takeuchi, H. (1995), The Knowledge-Creating Company - How Japanese Companies Create the Dynamics of Information, Oxford University Press, New York, NY.
74. Nunnally, J. (1978), Psychometry Theory, McGraw Hill, London.
75. O'Hanlon, J. and Peasnell, K. (1998), "Wall Street's contribution to management accounting: the Stern Stewart EVA financial management system", Management Accounting Research, Vol. 9 No. 4, pp. 421-44.
76. Pallant, J. (2000), SPSS Survival Manual, Open University Press, Buckingham.
77. Petty, R. and Guthrie, J. (2000), "Intellectual capital literature review, measurement, reporting and management", Journal of Intellectual Capital, Vol. 1 No. 2, pp. 155-76.
78. Porter, M.E. and Millar, V.E. (1985), "How information gives you competitive advantage", Harvard Business Review, July-August, pp. 149-60.
79. Reeds, K. (2000), "The dynamics of intellectual capital", PhD dissertation, The University of Connecticut, Storrs, CT.
80. Roos, J., Roos, G., Edvinsson, L. and Dragonetti, N.C. (1997), Intellectual Capital - Navigating in the New Business Landscape, Macmillan, London.
81. Roslender, R. and Fincham, R. (2001), "Thinking critically about intellectual capital", Accounting, Auditing & Accountability Journal, Vol. 14 No. 4, pp. 383-99.
82. Roslender, R. and Fincham, R. (2004), "Intellectual capital accounting in the UK: a field study perspective", Accounting, Auditing & Accountability Journal, Vol. 17 No. 2, pp. 178-209.
83. Segelod, E. (1998), "Capital budgeting in a fast-changing world", Long Range Planning, Vol. 31 No. 4, pp. 529-41.
84. Segelod, E. (2000), "Investment and investment processes in professional service groups", International Journal of Production Economics, Vol. 67 No. 2, pp. 135-54.
85. Seth, A. and Sung, M.K. (2001), "Valuation of international joint ventures: a real options approach", Valuation of Intangible Assets in Global Operations, Quorum Books, London.
86. Simons, R. (1990), "The role of management control systems in creating competitive advantage: new perspectives", Accounting Organizations and Society, Vol. 15 Nos 1-2, pp. 127-43.
87. Stark, A. (1990), "Irreversibility and the capital budgeting process", Management Accounting Research, Vol. 1 No. 1, pp. 167-80.
88. Stewart, T.A. (1990), "Why budgets are bad for business", Fortune, June, pp. 179-90.
89. Stewart, T.A. (1991), "Brainpower", Fortune, pp. 42-60.
90. Stewart, T.A. (1997), Intellectual Capital - The New Wealth of Organizations, Nicholas Brealey, London.
91. Stolowy, H. and Jeny-Cazavan, A. (2001), "International accounting disharmony: the case of intangibles", Accounting, Auditing & Accountability Journal, Vol. 14 No. 4, pp. 477-96.
92. Sullivan, P.H. (2000), Value-Driven Intellectual Capital: How to Convert Intangible Corporate Assets into Market Value, John Wiley, New York, NY.
93. Sveiby, K.E. (1997), The New Organizational Wealth - Managing and Measuring Knowledge-based Assets, Berret-Koehler Publishers, Inc., San Francisco, CA.
94. Tayles, M., Bramley, A., Adshead, N. and Farr, J. (2002), "Dealing with the management of intellectual capital: the potential role of strategic management accounting", Accounting, Auditing & Accountability Journal, Vol. 15 No. 2, pp. 251-67.
95. Teese, D. (2000), Managing Intellectual Capital, Oxford University Press, New York, NY.
96. Tomkins, C. and Carr, C. (1996), "Reflections on the papers in this issue and a commentary on the state of strategic management accounting", Management Accounting Research, Vol. 7 No. 2, pp. 271-80.
97. Trigeorgis, L. (1996), Real Options: Managerial Flexibility and Strategy in Resource Allocation, MIT Press, Cambridge, MA.
98. Usoff, C.A., Thibodeau, J.C. and Burnaby, P. (2002), "The importance of intellectual capital and its effect on performance measurement systems", Managerial Auditing Journal, Vol. 17 No. 1, pp. 9-15.
99. Van der Meer-Kooistra, J. and Zijlstra, S. (2001), "Reporting on intellectual capital", Accounting, Auditing & Accountability Journal, Vol. 14 No. 4, pp. 456-76.
100. Van der Stede, W.A. (2001), "Measuring tight budgetary control", Management Accounting Research, Vol. 12 No. 1, pp. 119-37.
101. Wallander, J. (1999), "Budgeting - an unnecessary evil", Scandinavian Journal of Management, Vol. 15 No. 4, pp. 405-21.
102. Wallman, S. (1995), "The future of accounting and disclosure in an evolving world: the need for dramatic change", Accounting Horizons, Vol. 9 No. 3, pp. 81-91.
103. Webb, R.A. (2002), "The impact of reputation and variance investigations on the creation of budget slack", Accounting, Organizations and Society, Vol. 27 Nos 4-5, pp. 361-78.
104. Webster, M., Sugden, D.M. and Tayles, M.E. (2004), "The measurement of manufacturing virtuality", International Journal of Operations & Production Management, Vol. 24 No. 7, pp. 721-42.
105. Wiig, M.K. (1997), "Integrating intellectual capital and knowledge management", Long Range Planning, Vol. 30 No. 3, pp. 399-405.
106. Brownell, P. and McInnes, J. (1986), "Budgetary participation, motivation and managerial performance", The Accounting Review, Vol. 61 No. 4, pp. 587-600.
107. Maccarrone, P. (1996), "Organizing the capital budgeting process in large firms", Management Decision, Vol. 34 No. 6, pp. 43-56.