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

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.