Link between Knowledge Management and Managerial Accounting: Impacts of Environment and Structure

Abstract

Knowledge plays a significant role in offering competitive advantages to firms, which helps do better than their rivals do. However, knowledge management is conditional on various conditions, for example the usefulness of knowledge management, business environments and firm structure as well as the adoption of managerial accounting in business. In the current research project, quantitative analyses was employed, particularly using confirmatory factor analyses, ordinary least square regressions and instrumental variable regressions to explore the relationships among knowledge management, its usefulness, business environments, firm structure and the adoption of managerial accounting in business. The empirical results disclose that the adoption of knowledge management is statistically related to its usefulness, firm structure and business environments as well as to the application of managerial accounting in business. This research project makes some implications on how the executives, who face different kinds of firm structure, high uncertainty of business environments, high application levels of managerial accounting in business and high usefulness of knowledge management, should adopt knowledge management in business.