Transformation of Intellectual Capital through Management Accounting System: An Industry Perspective

Abstract

This study examines the transformative impact of management accounting systems on intellectual capital within various industries. Drawing on quantitative research methodologies, the paper employs a robust analytical framework to assess how different components of intellectual capital human, structural, and relational capital—are influenced by the strategic implementation of management accounting practices. Utilizing data from over 300 firms across multiple sectors, this research identifies significant correlations between the sophistication of management accounting systems and the enhancement of intellectual capital. The findings reveal that firms with advanced management accounting systems demonstrate superior performance in terms of innovation output, operational efficiency, and strategic alignment. Additionally, this study highlights the role of industry-specific factors in moderating the relationship between management accounting systems and intellectual capital transformation. These insights contribute to the theoretical understanding of the dynamic interplay between accounting practices and intellectual assets, offering practical implications for managers aiming to leverage accounting systems to foster intellectual growth and competitive advantage. The paper concludes with recommendations for further research and a discussion on the potential for management accounting systems to adapt to the evolving demands of the digital economy.