Abstract
Performance is the primary focus of each company. Management is always expected to achieve excellent performance by stakeholders. Previous studies asserted that management accounting innovations and information capital maturity level are two important factors that support the success of business process performance. Therefore, this study empirically investigates two theoretical paths. Firstly, whether continuous improvements mediate management accounting innovations-organizational performance relationship. Secondly, whether continuous improvements mediate information capital maturity level-organizational performance relationship. Using a sample of 54 managers of the Indonesian State-Owned Enterprises (SOEs), this study finds that continuous improvements fully mediate management accounting innovations-organizational performance relationship. Furthermore, this study also finds that continuous improvements do not mediate information capital maturity level-organizational performance relationship. Overall, this study gives empirical support for contingency theory, especially in providing contingent factors affecting organizational performance, namely management accounting innovations, information capital maturity level, and continuous improvements.
Highlights
Performance is the primary focus of each company
Previous studies asserted that management accounting innovations and information capital maturity level are two important factors that support the success of business process performance
Using a sample of 54 managers of the Indonesian State-Owned Enterprises (SOEs), this study finds that continuous improvements fully mediate management accounting innovations-organizational performance relationship
Summary
Performance is the primary focus of each company. It is the degree to which a feat is being or has been accomplished (Al-Refaie, 2015). Management is always expected to achieve excellent performance by stakeholders. In the era of global competition, this becomes a big challenge for management team. It goes without saying that companies need to investigate and apply a differentiated strategy versus others to stand out in the crowd (Azizi et al, 2009). Company that has competitive advantage will be able to perform as expected. Sustainable competitive advantage can only be achieved by a company using right strategy and executing it effectively. Planning, coaching, and evaluation are critical elements of business strategy (Wheelen & Hunger, 2012)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
