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Intellectual capital and business performance

Intellectual capital and business performance Purpose– The purpose of this paper, building on previous studies of intellectual capital (IC) and business performance, is an exploratory study of how the use of cloud-based accounting/finance infrastructure affects the business performance of small and medium-sized enterprises (SMEs). The paper aims to discuss these issues. Design/methodology/approach– A survey method is used to capture perceptions of how cloud-based accounting/finance infrastructure affects business performance in SMEs. The study assumes that although accounting/finance systems are generally regarded as one element of a firm’s structural capital; the introduction of a cloud-based infrastructure in the accounting/finance area has the potential to positively impact on all three elements of a firm’s IC. Based on the survey data collected, a conceptual model was formulated to test the relationship between cloud-based accounting/finance infrastructure and business performance through the prism of firms’ IC. Findings– The results indicate that cloud-based accounting/finance infrastructure has a positive and statistically significant impact on human capital and relational capital. On structural capital, although positive, the relationship is not statistically significant. On the relationship between the three components of IC and business performance, all three elements are both positive and statistically significant. Furthermore, the R2 value generated for the ultimate endogenous construct in the hypothesised conceptual model, i.e. “Business Performance” is 71.3 per cent, indicating significant model explanatory power. Research limitations/implications– The findings suggest further more in-depth research is needed to explore in detail the effects of cloud-based accounting/finance infrastructure on both the IC and subsequent business performance of SMEs. Originality/value– Studies on the effects of cloud computing on accounting are scarce. This exploratory research suggests that cloud-based accounting/finance infrastructure can potentially improve the business performance of SMEs. While a valuable finding in itself, more research in this area is to be encouraged. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Intellectual Capital Emerald Publishing

Intellectual capital and business performance

Cleary, Peter; Quinn, Martin
Journal of Intellectual Capital , Volume 17 (2): 24 – Apr 11, 2016
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References (117)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1469-1930
DOI
10.1108/JIC-06-2015-0058
Publisher site
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Abstract

Purpose– The purpose of this paper, building on previous studies of intellectual capital (IC) and business performance, is an exploratory study of how the use of cloud-based accounting/finance infrastructure affects the business performance of small and medium-sized enterprises (SMEs). The paper aims to discuss these issues. Design/methodology/approach– A survey method is used to capture perceptions of how cloud-based accounting/finance infrastructure affects business performance in SMEs. The study assumes that although accounting/finance systems are generally regarded as one element of a firm’s structural capital; the introduction of a cloud-based infrastructure in the accounting/finance area has the potential to positively impact on all three elements of a firm’s IC. Based on the survey data collected, a conceptual model was formulated to test the relationship between cloud-based accounting/finance infrastructure and business performance through the prism of firms’ IC. Findings– The results indicate that cloud-based accounting/finance infrastructure has a positive and statistically significant impact on human capital and relational capital. On structural capital, although positive, the relationship is not statistically significant. On the relationship between the three components of IC and business performance, all three elements are both positive and statistically significant. Furthermore, the R2 value generated for the ultimate endogenous construct in the hypothesised conceptual model, i.e. “Business Performance” is 71.3 per cent, indicating significant model explanatory power. Research limitations/implications– The findings suggest further more in-depth research is needed to explore in detail the effects of cloud-based accounting/finance infrastructure on both the IC and subsequent business performance of SMEs. Originality/value– Studies on the effects of cloud computing on accounting are scarce. This exploratory research suggests that cloud-based accounting/finance infrastructure can potentially improve the business performance of SMEs. While a valuable finding in itself, more research in this area is to be encouraged.

Journal

Journal of Intellectual Capital – Emerald Publishing

Published: Apr 11, 2016

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