International Journal of Accounting Research

Abstract

The Mediating Role of Effective Strategic Decision Making in the Relationship between Intellectual Capital and Information System Capability effect on Financial Performance

Raden Edi Sewandono*, Armanu Thoyib, Djumilah Hadiwidjojo and Ainur Rofiq

This study analyses the importance of intellectual capital and information system capability applied in stated-owned companies in Indonesia which influences the company’s financial performance through mediating variable. Using the theory of resource based view (RBV) and bounded rationality to investigate these relations, a series of hypotheses are developed, taking into account the position of effective strategic decision-making as a mediator variable. The study analyses structural equation modelling (SEM) derived from empirical data from 106 companies in Indonesia. The study attempts to precisely analyze how the impact of intellectual capital and information system capability on established stated-owned companies in Indonesia is affected by effective strategic decision making. The research exposes that information system capability has no influence on financial performance, whereas intellectual capital and information system capability indirectly leverages the financial performance through effective strategic decision-making.

Published Date: 2021-03-02; Received Date: 2021-01-29