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
Benchmarking: An International Journal
ISSN: 1463-5771
Article publication date: 2 April 2020
Issue publication date: 29 April 2020
Abstract
Purpose
Analyze 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/approach
The 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.
Findings
Innovation 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/value
The 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.
Keywords
Acknowledgements
Retraction notice: The publishers of Benchmarking: An International Journal wish to retract the following article:Hutahayan, B. (2020), “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”, published in Benchmarking: An International Journal, Vol. 27 No. 4, pp. 1289-1318. This article is being retracted for the following reasons: Substantive concerns around the authorship of the work, which we remain unable to resolve; Simultaneous submission; Substantial overlap with the following works: Hariyati, H., Tjahjadi, B. and Soewarno, N. (2019), “The mediating effect of intellectual capital, management accounting information systems, internal process performance, and customer performance”, International Journal of Productivity and Performance Management, Vol. 68 No. 7, pp. 1250-1271. https://doi.org/10.1108/IJPPM-02-2018-0049 Hariyati Hariyati, Bambang Tjahjadi, (2018) ‘Contingent Factors Affecting the Financial Performance of Manufacturing Companies: The Case of East Java, Indonesia’, Asian Journal of Business and Accounting, Vol, 11,(1), https://ajba.um.edu.my/article/view/12151/7928 Hariyati, Dian Anita Nuswantoro, Lintang Venusita, (2016), ‘Mediation effect of environmental performance: the relations with green innovation strategy and business performance’, ICAMESS 2018, ISBN: 978-602-73705-0-0.The Benchmarking: An International Journal guidelines make it clear that works must be original, that anyone who has made a substantial contribution to the article should be credited as an author, and that an article should only be submitted to one journal at a time.The investigation was conducted in line with the Committee on Publication Ethics guidelines. The journal sincerely apologises to readers for any inconvenience caused.
Citation
Hutahayan, B. (2020), "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", Benchmarking: An International Journal, Vol. 27 No. 4, pp. 1289-1318. https://doi.org/10.1108/BIJ-02-2018-0034
Publisher
:Emerald Publishing Limited
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