Organizational Capital and Financial Performance; What is the Mediation Effect of Firm Innovation: Evidence from Insurance Firms in Kenya

Kirwa, Tecla; Ngeno, Vincent

doi:10.20448/2002.82.72.78

Cited by 4 publications

(4 citation statements)

References 17 publications

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“…Lev et al [59], therefore, stated that it can be an institutional arrangement which integrates all resources in the firms. Kirwa and Ngeno [55], however, posited that it is a structural element of firms' culture independent of employees. This structural element consists of business processes and systems, rules, norms, and relationships.…”

Section: Organisational Capital Disclosure and Firm's Valuementioning

confidence: 99%

An Assessment of the Influence of Structural Capital Disclosure on the Value of Listed Service Firms in Nigeria

Akinadewo,

Falana

2024

Asian J. Econ. Busin. Acc.

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The purpose of this study was to assess the influence of structural capital disclosure on the value of listed service firms in Nigeria. This study employed a quantitative research approach, using data from annual reports and financial statements of 23 listed service firms in Nigeria. The sample was selected using a census sampling technique. The study used multiple regression analysis coupled with correlation analysis. From the findings that emerged from the result, the study concluded that structural capital disclosure proxy by organisational, process, and innovation capital disclosures significantly influence the value of listed service firms in Nigeria. Given this finding, the study recommends that a framework for such disclosure should be institutionalized as firms want to limit this type of disclosure because of business secrecy and competitors' disadvantage costs.

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Section: Organisational Capital Disclosure and Firm's Valuementioning

confidence: 99%

An Assessment of the Influence of Structural Capital Disclosure on the Value of Listed Service Firms in Nigeria

Akinadewo,

Falana

2024

Asian J. Econ. Busin. Acc.

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“…Several measuring items used in this study were adapted from the work of other scholars with minor modifications to suit the current study. The study utilized profitability, growth in sales and liquidity as indicators of financial performance, which had nineteen measuring items adapted from Arinda (2019); Chepngetich (2016); Eton, Gilbert, Fabian, Benard, and Dennis (2019); Kirwa and Ngeno (2020). Record keeping, banking practices and computerized accounting were employed in this study as indicators of accounting practices, which resulted in fifteen ( 15 2020).…”

Section: Measurement Of Variablesmentioning

confidence: 99%

Accounting Practices, Financial Literacy And Financial Performance Of Micro, Small And Medium Enterprises

Onyango Thadeus,

Simiyu,

Ombaba

2023

JBMR

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This study examines how financial literacy moderates the link between accounting practices and financial performance of MSMEs in the Republic of Kenya. Micro, Small and Medium Enterprises (MSMEs) are significant in developing many economies by creating employment, alleviating poverty and food insecurity, and contributing to the Gross Domestic Product. Despite their significance, MSMEs face multiple challenges that affect their capacity to achieve desired economic outcomes. The study employed an explanatory research design and utilized simple random sampling to select a representative sample. Data was collected from 398 managers/owners of MSMEs using a self-administered questionnaire. The hierarchical regression model was used to test the study hypothesis in SPSS vs.23. The study revealed that accounting practices and financial literacy have a positive and significant influence on MSMEs' financial performance. In addition, results show that financial literacy moderates the relationship between accounting practices and financial performance. The study underlines the importance of accounting approaches and financial literacy in improving MSMEs’ financial performance in developed and emerging nations. Given the scarcity of research in this context, it is critical to employ financial literacy as a moderating variable. The interaction results contribute to the body of knowledge and serve as a catalyst for improving the association between accounting practices and financial performance.

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“…In a knowledge-based business setting, novel intangible organizational assets like innovation, human resource knowledge, competencies, organizational culture, customer service, organizational system, structure, etc., are needed (Soewarno and Tjahjadi, 2020). The term intellectual capital is used in the overlap of all assets, intangible resources and non-physical resources of an organization, including processes, innovation capacity and implicit and explicit knowledge of its members and partner network (Kirwa, 2020). To better understand intellectual capital, the organization's assets can be divided into two main categories: 1.…”

Section: Introductionmentioning

confidence: 99%

A study on the intellectual capital management over cloud computing using analytic hierarchy process and partial least squares

Wang

2021

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PurposeIn the age of a knowledge-based economy and following extensive socio-economic changes, the success of organizations is not limited to gaining financial and material resources. Instead, it depends on the acquisition of intangible assets that can be used to achieve a sustainable competitive advantage. In the new strategic environment, organizations will thrive when they see themselves as a learning organization whose goal is to improve intellectual capital continually; an organization that cannot increase its intellectual capital cannot survive. The term intellectual capital is used in the overlap of all assets, intangible resources and non-physical resources of an organization, including processes, innovation capacity and implicit and explicit knowledge of its members and partner network. However, despite the growing importance of intellectual capital and cloud computing as vital resources for organizations' competitive advantage, there is a limited understanding of them. Simultaneously, the management of intellectual capital enables organizational managers to create, nurture, control and preserves a strong competitive advantage source, the advantage that competitors will not easily capture. So, the main objective of the present investigation is to check out the factors affecting the adoption of intellectual capital management systems based on cloud computing in hospitals.Design/methodology/approachIn the last two decades, we have moved toward economics, where investment in Information Technology (IT), human resources, development, research and advertising is essential to maintain competitive advantage and certify the sustainability of organizations. Therefore, it can be stated that the economic value is the creation and management of intangible assets, which are referred to as intellectual capital. On the other hand, cloud computing is presented as a new paradigm for hosting and providing services through the Internet. Cloud computing can lead to too many benefits to organizations, including cost reduction, flexibility and improved performance. The present article examines how optimal intellectual capital management can be achieved using cloud computing. So, seven hypotheses were developed through the dimensions of technology, environment, organization and innovation. In this study, the path analysis was performed using Analytic Hierarchy Process (AHP) and Partial Least Squares (PLS). By reviewing the literature related to the model of technology, organization, environment and innovation dissemination theory, four main criteria, and 15 sub-criteria were identified based on the opinions of specialists, professors and IT experts based on AHP and PLS methods.FindingsThe results of this investigation confirmed all the hypotheses. The results illustrated that environmental and technological factors should be regarded more when adopting intellectual capital management systems based on cloud computing. The results also indicated that intellectual capital highly influences improving performance. Furthermore, cloud apps, like other disruptive technology, deliver superior benefits while still presenting a slew of realistic challenges that must be tackled. In order to draw a growing customer base to this business model, software vendors should resolve these concerns. The literature revealed that the computing industry is making tremendous strides around the world. Nevertheless, in order to achieve a faster and softer adoption, newer and more advanced techniques are still required.Research limitations/implicationsThe research outcomes can significantly impact a wide range of organizations, such as health-related organizations. However, there are some limitations; for example, the sample is limited to one country. Therefore, future studies can measure the data of this study in different samples in different countries. Future researchers can also boost the model's predictive capability to adopt cloud computing in other organizations by adding environmental, organizational, innovation and other technical factors.Practical implicationsManagers will use these emerging innovations to minimize costs and maximize profits in the intellectual capital management competition. An effective cloud computing based on an electronic human resource management system can significantly increase system performance in industries. The investigators expect that the results will direct clinicians and scholars into a more advanced and developed age of cloud-based apps.Originality/valueInvestigations on the impact of cloud computing on intellectual capital management are rare. Accordingly, this investigation provided a new experience in terms of intellectual capital in the field of cloud computing. This study filled the scientific research gap to understand the factors affecting intellectual capital management systems based on cloud computing. This study provides a better insight into the power of organizational and environmental structure to adopt this technology in hospitals.

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Organizational Capital and Financial Performance; What is the Mediation Effect of Firm Innovation: Evidence from Insurance Firms in Kenya

Cited by 4 publications

References 17 publications

An Assessment of the Influence of Structural Capital Disclosure on the Value of Listed Service Firms in Nigeria

An Assessment of the Influence of Structural Capital Disclosure on the Value of Listed Service Firms in Nigeria

Accounting Practices, Financial Literacy And Financial Performance Of Micro, Small And Medium Enterprises

A study on the intellectual capital management over cloud computing using analytic hierarchy process and partial least squares

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