Knowledge Management and Contemporary Management Accounting Practices of Malaysian Cooperatives Sector: An Empirical Evidence

Sharul Effendy Janudin,Nurul Fadly Habidin,Hazianti Abdul Halim

doi:10.6007/ijarafms/v10-i3/7872

Abstract

Cooperatives in Malaysia are currently operating in a constantly volatile, uncertain, complex and ambiguity situation. The alignment between managers’ plan and organization goals can be achieved through the application of knowledge management and contemporary management accounting practices (MAP). Therefore, the purpose of this paper is to examine the association between knowledge management and contemporary management accounting practices (MAP) in the Malaysian’ co-operative sector. Data were collected through distribution of mail survey to management team from the 100 leading co-operatives in Malaysia. Descriptive on the knowledge management and adoption level of contemporary management accounting practices has been analyzed. The findings indicate the knowledge management in organizational structure level is high and contemporary MAP is also high. The relationship between knowledge management and contemporary MAP among Malaysian Co-operatives is also significant but at moderate level. The findings suggest that knowledge management is an immerse diversity of knowledge and it will not succeed in an organization unless it is supported by top management. Knowledge management plays an important roles through making explicit the link between effective knowledge management and utilization of contemporary management accounting practices.

Highlights

At the end of year 2019, 14625 co-operatives were registered under Malaysia Co-operativeSocieties Commission
The findings suggest that knowledge management is an immerse diversity of knowledge and it will not succeed in an organization unless it is supported by top management
Clarification on knowledge management embedded in organizational structure enhances our understanding the need to be dynamic in managing organization

Summary

Introduction

At the end of year 2019, 14625 co-operatives were registered under Malaysia Co-operative. National Co-operatives Policy 2011-2020 was launched with the purpose of accelerating the performance of the co-operatives. There are five strategic thrust: stimulate participation of co-operatives in high value economic sector, strengthen the capacity and capability. MANAGEMENT SCIENCES of co-operatives, create and develop the capability of human capital in co-operatives, improve public confidence in the co-operative movement; and strengthen co-operatives through effective supervision and enforcement (Malaysia Co-operative Societies Commission, 2011). In order to be competitive, cooperatives are demanded to be more creative and innovative. Cooperatives may design an innovative organizational structure and applying management accounting tools in managing organization. As the sustainability and progress of most organizations including performance, knowledge management through organizational structure boost information exchange and discussion through various channel

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Conclusion