MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS, HO CHI MINH CITY -------------------------------- TRINH HIEP THIEN Mediating effect of strategic management accounting practices in the relationship between intellectual capital and corporate performance Evidence from Vietnam A dissertation submitted for the Degree of Doctor of Philosophy in Accounting May 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com MEDIATING EFFECT OF STRATEGIC MANAGEMENT ACCOUNTING PRACTICES IN THE RELATIONSHIP BETWEEN INTELLECTUAL CAPITAL AND CORPORATE PERFORMANCE EVIDENCE FROM VIETNAM Trinh Hiep Thien MPAcc (University of Sydney), MBA (UEH), BBus (UEH), ACMA, CGMA A dissertation submitted for the Degree of Doctor of Philosophy in Accounting Code: 9.01 Academic Supervisors: Dr. Doan Ngoc Que Dr. Le Dinh Truc University of Economics, Ho Chi Minh City May 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS, HO CHI MINH CITY Submitted to School of UEH Graduate Title of dissertation: Mediating effect of strategic management accounting practices in the relationship between intellectual capital and corporate performance – Evidence from Vietnam Author: Trinh Hiep Thien Academic Supervisor: Dr. Doan Ngoc Que Dr.
Le Dinh Truc Date of Final Defense: Final Defense Committee: Jury Composition Read and Approved by _________________________. Defense Committee Chairperson Accepted by the School and the University in partially fulfillment of the requirements for the degree of Doctor of Philosophy in Accounting. Date Dean of the School of Accounting _________________ _________________________. Date Dean of the School of UEH Graduate LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com STATEMENT OF AUTHENTICATION The work described in this dissertation is original based on raw data collected by me, except where due acknowledgement is made in the text.
I hereby declare that this material has not previously submitted, either in full or in part, for a degree at this or any other institution. Ho Chi Minh City, May 31st, 2019 TRINH HIEP THIEN LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS Page LIST OF TABLES. I LIST OF FIGURES. II LIST OF ABBREVIATIONS.
Research questions and research objectives. Research object and research scope. Outline of the dissertation .5 CHAPTER 1: LITERATURE REVIEW. Review of international studies of intellectual capital.
Stages in developing intellectual capital as a research field. Research trends on intellectual capital in the accounting discipline. Research methods used to study intellectual capital. Review of studies investigating the relationship between intellectual capital and corporate performance.
Review of international studies of strategic management accounting. Research on conceptualizing strategic management accounting. Research on strategic management accounting techniques. Research on the relationship between environment, strategy choice and strategic management accounting practices.
Research on strategic management accounting process. Review of studies investigating the relationship between strategic management accounting practices and corporate performance. Review of studies of intellectual capital and strategic management accounting in Vietnam .25 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research on intellectual capital in Vietnam.
Research on strategic management accounting in Vietnam. Lack of studies concerning performance implication of intellectual capital in association with the mediating role of SMA practices. Lack of empirical research concerning the relationship between intellectual capital and each group of SMA practices. Lack of Vietnamese empirical studies on intellectual capital and SMA practices.31 SUMMARY OF CHAPTER 1 .33 CHAPTER 2: THE CONCEPTS AND INTELLECTUAL CAPITAL MEASUREMENT MODELS.
Definition of intellectual capital. Components of intellectual capital. Definition of corporate performance. Determinants of strategic management accounting practices.
Intellectual capital measurement models .46 SUMMARY OF CHAPTER 2 .49 CHAPTER 3: THEORETICAL FRAMEWORK AND HYPOTHESES DEVELOPMENT. Mediating effect of strategic management accounting practices in the relationship between intellectual capital and corporate performance. Human capital, structural capital and relational capital reciprocally affect each other (H1). Intellectual capital impacts on SMA practices (H2).
Underlying theoretical framework.52 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Intellectual capital impacts on corporate performance (H3). Underlying theoretical framework. SMA practices impact on corporate performance (H4).
Underlying theoretical framework. The mediating role of strategic management accounting practices in the relationship between intellectual capital and corporate performance (H5). Associations between intellectual capital components and each group of strategic management accounting practices. Underlying theoretical framework.
Summary of the correlations in the two research models .68 SUMMARY OF CHAPTER 3 .71 CHAPTER 4: RESEARCH METHODOLOGY. Selection of an appropriate regression approach. Evaluation of reflective measurement scales. Evaluation of formative measurement scales.
Evaluation of the fitness of structural model. Evaluation of the significance and the stability of path coefficients. Unit of analysis and sample size. Unit of analysis and informants.
Measures of each component of intellectual capital. Operationalization of value added (VA). Operationalization of human capital efficiency (HCE) .85 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Operationalization of structural capital efficiency (SCE).
Operationalization of relational capital efficiency (RCE). Measures of the variables of strategic management accounting practices. Measures of the variables of corporate performance. Measures of control variables .94 SUMMARY OF CHAPTER 4 .96 CHAPTER 5: SAMPLE CHARACTERISTICS AND MEASUREMENT SCALES ASSESSMENT.
Data collection to construct the variables of SMA practices. Translating and pilot testing of the questionnaire. Main data collection procedure. Organization size and SMA practices type.
Respondents’ position type. The outcomes of reflective measurement scales assessment. The outcomes of formative measurement scales assessment. Calculation of measurement scale of innovation capital efficiency.
Calculation of measurement scale of organizational capital efficiency. Assessment of formative measurement scales related to the structural capital efficiency variable. Calculation of the variable of investment efficiency. Descriptive statistics and collinearity assessment .111 SUMMARY OF CHAPTER 5 .113 CHAPTER 6: DATA ANALYSIS AND DISCUSSION.
Evaluation of the fitness of theoretical models. Empirical results – testing of reciprocal correlations between intellectual capital components (H1) .115 LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Empirical results – testing of the correlations between intellectual capital components and strategic management accounting practices (H2). Empirical results – testing of the direct correlations between strategic management accounting practices and corporate performance (H4).
Empirical results – testing of the direct correlations (H3) and indirect correlations between intellectual capital components and corporate performance (H5). Empirical results – testing of the associations of strategic management accounting practices and intellectual capital components (H6). Empirical results – testing of control variables .130 SUMMARY OF CHAPTER 6 .132 CHAPTER 7: IMPLICATIONS FOR MANAGING INTELLECTUAL CAPITAL BY STRATEGIC MANAGEMENT ACCOUNTING PRACTICES. A discovery of three-stage value-creating process.
Implications for the management, policy and research of intellectual capital. Recommendations for leaderships. Recommendations for policymakers. Recommendations for academic communities.
Implications for integration of strategic management accounting practices into intellectual capital management. Orientations to manage intellectual capital by strategic cost management. Orientations to manage intellectual capital by competitor accounting. Orientations to manage intellectual capital by strategic accounting.
Orientations to manage intellectual capital by customer accounting .147 SUMMARY OF CHAPTER 7. Summary of research findings. Practical managerial contributions. Further research directions .156 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF THE AUTHOR’S PUBLICATIONS .161 APPENDIX 1: PREVIOUS STUDIES INVESTIGATING THE RELATIONSHIP BETWEEN IC AND CORPORATE PERFORMANCE .185 APPENDIX 2: REVIEW OF PRIOR INTERNATIONAL STUDIES OF STRATEGIC MANAGEMENT ACCOUNTING .188 APPENDIX 3: PREVIOUS STUDIES INVESTIGATING THE RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT ACCOUNTING AND CORPORATE PERFORMANCE .192 APPENDIX 4: ELEMENTS OF HUMAN CAPITAL IN INTELLECTUAL CAPITAL REPORT .195 APPENDIX 5: ELEMENTS OF STRUCTURAL CAPITAL IN INTELLECTUAL CAPITAL REPORT .197 APPENDIX 6: ELEMENTS OF RELATIONAL CAPITAL IN INTELLECTUAL CAPITAL REPORT .199 APPENDIX 7: DESCRIPTIONS OF SMA TECHNIQUES .201 APPENDIX 8: CATEGORIZATION OF THE IC MEASUREMENT METHODS UNDER MARKET CAPITALIZATION MODEL .205 APPENDIX 9: CATEGORIZATION OF THE INTELLECTUAL CAPITAL MEASUREMENT METHODS UNDER RETURN ON ASSETS MODEL .208 APPENDIX 10: CATEGORIZATION OF THE IC MEASUREMENT METHODS UNDER DIRECT IC MODEL .210 APPENDIX 11: CATEGORIZATION OF THE INTELLECTUAL CAPITAL MEASUREMENT METHODS UNDER SCORECARD MODEL .213 APPENDIX 12: INDICATORS FOR REFLECTIVE MEASUREMENT OF SMA CONSTRUCTS .215 APPENDIX 13: SURVEY FORM IN ENGLISH .218 APPENDIX 14: SURVEY FORM IN VIETNAMESE .224 APPENDIX 15: CRONBACH ALPHA AND EFA RESULTS OF THE INDICATORS OF SMA CONSTRUCTS .230 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APPENDIX 16: EVALUATION OF INDICATORS AND LATENT VARIABLES .231 APPENDIX 17: CROSS LOADINGS OF REFLECTIVE MEASUREMENT SCALES .233 APPENDIX 18: CORRELATIONS, SQUARE ROOT OF AVE AND HTMT .234 APPENDIX 19: THE ESTIMATION OF SGA EXPENDITURES AMORTIZATION RATE .235 APPENDIX 20: THE ESTIMATION OF ORGANIZATIONAL CAPITAL .239 APPENDIX 21: THE ESTIMATION OF INVESTMENT EFFICIENCY .241 APPENDIX 22: DESCRIPTIVE STATISTICS AND CORRELATION COEFFICIENTS.244 APPENDIX 23: COLLINEARITY STATISTICS – INNER VIF VALUES .246 APPENDIX 24: PLS ALGORITHM RESULT WITH THE ASSET TURNOVER VARIABLE .247 APPENDIX 25: PLS ALGORITHM RESULT WITH THE INVESTMENT EFFICIENCY VARIABLE .249 APPENDIX 26: PLS ALGORITHM RESULT WITH THE RETURN ON EQUITY VARIABLE .251 APPENDIX 27: PLS ALGORITHM RESULT WITH THE TOBIN Q VARIABLE .253 APPENDIX 28: REGRESSION RESULTS BETWEEN IC COMPONENTS AND EACH GROUP OF SMA PRACTICES .255 APPENDIX 29: THE INTELLECTUAL CAPITAL BENCHMARKING SYSTEM FRAMEWORK .256 APPENDIX 30: LIST OF PARTICIPATING FIRMS .257 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com –I– LIST OF TABLES Table 1.
Milestones of significant contributions to the identifications, measurement and reporting of intellectual capital. Topics of intellectual capital research in the accounting discipline. Methods used in intellectual capital accounting research. Literature review of essential techniques in strategic management accounting toolbox.
Research trends on management accounting in Vietnam. Definitions of intellectual capital. Some key differences between strategic and traditional management accounting. Summary of measurement approaches that are mainly used in intellectual capital research.
Integration of firm-level strategy and reliance on human capital. Development of the final sample in the main study. The number of respondents by Industry type. The number of respondents by Organization size and SMA practices type.
Number of Respondents by Positions type and Working Years type in the current organization. VIF, Significance and relevance of formative indicators. The coefficient of explanatory variables in Equation 4. Summary of the SRMR results of 5-testing models.
Summary of the results of the first hypothesis testing. Summary of the results of the second hypothesis testing. Summary of the results of the forth hypothesis testing. Summary of the results of the third and fifth hypothesis testing.
Summary of the results of the sixth hypothesis testing. Summary of the testing results of control variables. Example of intellectual capital components in value chain .141 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com – II – LIST OF FIGURES Figure 2. Four-stage model of corporate market valuation.
The first research model. Basic contingency framework. The second research model. The research process.
Calculation of sample size of the first research model. Calculation of sample size of the second research model. The value-added intellectual coefficient model. Assessment of convergent validity of formative indicators relative to structural capital.
The three-stage value-creating process by IC and SMA practices. Five-step intellectual capital management model .137 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.