Title: Relationship between intellectual capital-oriented corporate performance management systems, intellectual capital and corporate performance: an exploratory study

Authors: Chaur-Shiuh Young, Liu-Ching Tsai, Hung-Wen Lee

Addresses: Department of Accountancy and Graduate Institute of Finance and Banking, National Cheng Kung University, No. 1, University Rd., Tainan City 701, Taiwan. ' Department of Business Adminstration, National Chiayi University, No. 580, Xinmin Rd., Chia-Yi 620, Taiwan. ' Department of Business Adminstration, National Chiayi University, No. 580, Xinmin Rd., Chia-Yi 620, Taiwan

Abstract: This study examines whether an intellectual capital (IC)-oriented corporate performance management (CPM) system drives corporate performance through supporting the development and accumulation of intellectual capital. Data were collected from 211 firms in Taiwan and analysed using a structural equation model (SEM) analysis. We document that greater adoption of an IC-oriented CPM system is significantly associated with higher IC levels. In addition, greater adoption of an IC-oriented CPM system has a significant and positive indirect effect on corporate performance through its association with IC levels. The results highlight the importance and benefits of adopting an IC-oriented CPM system. This study extends existing research on the association between IC and corporate performance by explicitly identifying IC-oriented CPM systems as a contributing factor to corporate IC developments.

Keywords: corporate performance; performance management systems; intangible assets; intellectual capital; performance evaluation; structural equation modelling; Taiwan.

DOI: 10.1504/IJAAPE.2007.017087

International Journal of Accounting, Auditing and Performance Evaluation, 2007 Vol.4 No.4/5, pp.422 - 442

Published online: 11 Feb 2008 *

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