The mediating role of human capital and management accounting information system in the relationship between innovation strategy and internal process performance and the impact on corporate financial performance

Abstract

PurposeAnalyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.Design/methodology/approachThe population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.FindingsInnovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.Originality/valueThe difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.

Dampak Pengembangan Karir terhadap Kinerja Karyawan Pendidikan Tinggi Islam

“…Menurut (Panagiotakopoulos, 2020) setiap orang yang memiliki pendidikan dan lebih terlatih mampu menyediakan lebih banyak usaha produktif daripada orang dengan pendidikan dan pelatihan yang lebih rendah. Human capital theory diterima secara luas untuk meningkatkan kinerja organisasi, sehingga organisasi mengandalkan keterampilan, pengetahuan, kemampuan karyawan sebagai salah satu kunci penciptaan nilai (Hutahayan, 2020).…”

The moderating role of satisfaction level of management information systems in the effect of intellectual capital on innovation capability

“…Literatür incelendiğinde, entelektüel sermaye ile inovasyon arasındaki ilişki birçok kez incelenmiş ve arasında anlamlı bir ilişki olduğu saptanmıştır (Hutahayan, B., 2020;Obeidat vd.,2021). Bu çalışmada benzer sonuçlar elde edilmiştir.…”

“…Yönetim bilişim sistemleri bir yönüyle yapısal sermayenin bir parçası olarak görülmektedir. Literatürde bilgi sistemlerinin ve bilgi yönetim yeteneğinin inovayon yeteneğini etkilediğine ilişkin araştırmalar mevcuttur (Sontoro vd., 2018;Masloboev, A. V., & Langhans, M., 2018;Hutahayan, B., 2020). Ancak dijitalleşmenin hızla arttığı günümüzde yönetim bilişim sistemleri yapısal sermayenin bir parçası olmanın ötesinde tek başına önemli bir faktör haline gelmiştir.…”

Strategic Flexible Working Arrangement: The Realignment Between Human Resource and Management Accounting

“…The synergy between MA and HRM is significant to have a greater impact on internal business process performance such as improves production efficiency, cost savings, quality improvement, and increased asset utilization (Tavitiyaman et al, 2012;Bititci et al, 2011). This can be achieved through competent human resources coupled with accurate and reliable management accounting information (Hutahayan, 2020).…”