Main Article Content
Abstract
Purpose – This study aims to describe the effect of diversity of knowledge and financial capabilities on accountability for behavior control and improvement of financial performance.
Design/methodology/approach – The population in this study were all branches of the Baitul Maal Wat Tamwil Sharia Savings and Loans Cooperative (KSPPS BMT) in Central Java. The sample used purposive sampling to obtain 146 respondents. Data were analyzed using the Structural Equation Modeling (SEM) analysis technique with the application of Analysis Moment of Structural (AMOS 24).
Findings – The results of the study explain the increase in financial performance based on Behavioral Accounting Theory and Human Resource Management Theory. The behavior control accountability model shows that perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process and financial accountability can affect financial performance
Research limitations/implications – Where the factors of diversity of knowledge and financial capability in shaping accountability for behavior control and impact on financial performance will offer a deeper understanding of the supporting factors for accountability for behavior control and also have an impact on efforts to improve financial performance.
Practical implications – A better understanding of the factors influencing improvement efforts should assist accountants in information processing, quality of judgments, accounting problems that arise with accounting users and preparers, and the use of information in accounting decision making.
Originality/value – Using and explaining about improving financial performance based on Behavioral Accounting Theory and Human Resource Management Theory. The behavior control accountability model shows that perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process and financial accountability can affect financial performance
Keywords
Article Details
Copyright (c) 2024 Arini Novandalina, Ibnu Khajar, Nunung Ghoniyah
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References
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- Albulescu, C. T. (2020). Coronavirus and Financial Volatility: 40 Days of Fasting and Fear. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3550630
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- Barbić, D. (2017). Investigating the Role of Financial Knowledge, Financial Skills and Behavioral Control in Explaining Individuals’ Successfulness in Managing Personal Finances. 4th International Conference on Humanities, Social Sciences and Education (ICHSSE-17), 22–27. https://doi.org/10.15242/heaig.h0317436
- Belkaoui, A., & Karpik, P. G. (1989). Determinants of the Corporate Decision to Disclose Social Information Information. Accounting, Auditing & Accountability Journal, 2(1). https://doi.org/10.1108/09513578910132240
- Berber, N., Slavić, A., & Slavić, A. (2020). Relationship between Perceived Teamwork Effectiveness and Team Performance in Banking Sector of Serbia. Sustainability, 12(20), 8753. https://doi.org/10.3390/su12208753
- Bjekić, R., Jelača, M. S., Berber, N., & Aleksić, M. (2021). Factors Affecting Entrepreneurial Intentions of Faculty Students. Management: Journal Of Sustainable Business And Management Solutions In Emerging Economies, 26(2), 1–14. https://doi.org/10.7595/management.fon.2020.0024
- Chen, J.-L. (2016). Effects of Knowledge Management on the Operational Performance of the B&B Industry. International Journal of Marketing Studies, 8(4), 67–76. https://doi.org/10.5539/ijms.v8n4p67
- Chen, M.-H., Wang, H.-Y., & Wang, M.-C. (2018). Knowledge sharing, social capital, and financial performance: the perspectives of innovation strategy in technological clusters. Knowledge Management Research & Practice, 16(1), 89–104. https://doi.org/10.1080/14778238.2017.1415119
- Dwianika, A., Murwaningsari, E., & Suparta, W. (2020). ANALYSIS OF WATER AWARENESS, ACCOUNTABILITY, AND GOVERNANCE TO IMPROVE SUSTAINABILITY OF FIRM’S PERFORMANCE IN URBAN AREAS. Geographia Technica, 15(1), 35–42. https://doi.org/10.21163/GT_2020.151.04
- Eşitti, B., & Kasap, M. (2020). The impact of leader–member exchange on lodging employees’ dynamic capacities: The mediating role of job satisfaction. Tourism and Hospitality Research, 20(2), 237–244. https://doi.org/10.1177/1467358419826397
- Fong, P. S. W. (2003). Knowledge creation in multidisciplinary project teams: an empirical study of the processes and their dynamic interrelationships. International Journal of Project Management, 21(7), 479–486. https://doi.org/10.1016/S0263-7863(03)00047-4
- Friedline, T., & West, S. (2016). Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors. Journal of Family and Economic Issues, 37, 649–671. https://doi.org/10.1007/s10834-015-9475-y
- Gašić, D., & Berber, N. (2021). The Influence of Flexible Work Arrangement on Employee Behavior During the COVID-19 Pandemic in the Republic of Serbia. Management: Journal Of Sustainable Business And Management Solutions In Emerging Economies, 26(3), 73–88. https://doi.org/10.7595/management.fon.2021.0026
- Giles, B., Goods, P. S. R., Warner, D. R., Quain, D., Peeling, P., Ducker, K. J., Dawson, B., & Gucciardi, D. F. (2018). Mental toughness and behavioural perseverance: A conceptual replication and extension. Journal of Science and Medicine in Sport, 21(6), 640–645. https://doi.org/10.1016/j.jsams.2017.10.036
- Grubor, A., Berber, N., Aleksić, M., & Bjekić, R. (2020). Uticaj korporativne društvene odgovornosti na organizacione performanse - istraživanje u AP Vojvodini. Анали Економоског Факултета у Суботици – The Annals of the Faculty of Economics in Subotica, 56(43), 3–13. https://scindeks.ceon.rs/Article.aspx?artid=0350-21202043003G
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). Pearson Education.
- Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications. https://books.google.co.id/books?id=C%5C_EmjgEACAAJ
- Hakansson, N. H. (1978). Review Article: Where We are in Accounting: A Review of “Statement on Accounting Theory and Theory Acceptance.” The Accounting Review, 53(3), 717–725. http://www.jstor.org/stable/245678
- Hambrick, D. C. (2007). Upper Echelons Theory: An Update. Academy of Management Review, 32(2), 334–343. https://doi.org/10.5465/AMR.2007.24345254
- Han, Y., & Hong, S. (2019). The Impact of Accountability on Organizational Performance in the U.S. Federal Government: The Moderating Role of Autonomy. Review of Public Personnel Administration, 39(1), 3–23. https://doi.org/10.1177/0734371X16682816
- Kishan, K., & Alfan, E. (2019). Malaysian Individual Investors: What Are the Factors That Influence Their Financial Statement Usage? Asian Journal of Accounting Perspectives, 12(1), 22–48. https://doi.org/10.22452/AJAP.vol12no1.2
- Liu, P., Feng, Y., Li, A., Liu, W., & Xie, J. (2019). Disclosing behavioral anomalies in economic management: Implications for mental accounting theory. Advances in Psychological Science, 27(3), 406–417. https://doi.org/10.3724/SP.J.1042.2019.00406
- Malmi, T., & Granlund, M. (2009). In Search of Management Accounting Theory. European Accounting Review, 18(3), 597–620. https://doi.org/10.1080/09638180902863779
- Manaf, H. A., Armstrong, S. J., Lawton, A., & Harvey, W. S. (2018). Managerial Tacit Knowledge, Individual Performance, and the Moderating Role of Employee Personality. International Journal of Public Administration, 41(15), 1258–1270. https://doi.org/10.1080/01900692.2017.1386676
- Mathieu, J. E., Heffner, T. S., Goodwin, G. F., Salas, E., & Cannon-Bowers, J. A. (2000). The influence of shared mental models on team process and performance. Journal of Applied Psychology, 85(2), 273–283. https://doi.org/10.1037/0021-9010.85.2.273
- Mistry, V., Sharma, U., & Low, M. (2014). Management accountants’ perception of their role in accounting for sustainable development: An exploratory study. Pacific Accounting Review, 26(1/2), 112–133. https://doi.org/10.1108/PAR-06-2013-0052
- Mitchell, R., & Nicholas, S. (2006). Knowledge Creation in Groups: The Value of Cognitive Diversity, Transactive Memory and Open‑mindedness Norms. The Electronic Journal of Knowledge Management, 4(1), 67–74. https://academic-publishing.org/index.php/ejkm/article/view/737
- Paterson, A., Yonekura, A., Jackson, W., & Jubb, D. (Eds.). (2018). Contemporary Issues in Social Accounting. Goodfellow Publishers Ltd.
- Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151, 451–471. https://doi.org/10.1007/s10551-016-3229-0
- Potocki, T., & Cierpiał-Wolan, M. (2019). Factors shaping the financial capability of low-income consumers from rural regions of Poland. International Journal of Consumer Studies, 43(2), 187–198. https://doi.org/10.1111/ijcs.12498
- Reagans, R., & Zuckerman, E. W. (2001). Networks, Diversity, and Productivity: The Social Capital of Corporate R&D Teams. Organization Science, 12(4), 393–521. https://doi.org/10.1287/orsc.12.4.502.10637
- Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The Influence of Intellectual Capital towards Financial Performance with Brand Value as an Intervening Variable. Quality - Access to Success, 20(168), 79–85. https://www.researchgate.net/profile/Iskandar-Muda/publication/330883138_The_influence_of_intellectual_capital_towards_financial_performance_with_brand_value_as_an_intervening_variable/links/5ca0c45992851cf0aea431d4/The-influence-of-intellectual-capital-towards-financial-performance-with-brand-value-as-an-intervening-variable.pdf
- Sherraden, M. S. (2010). Financial Capability: What is It, and How Can It Be Created? (10–17; CSD Working Papers No. 10-17). https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1643&context=csd_research
- Taber, K. S. (2018). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education, 48, 1273–1296. https://doi.org/10.1007/s11165-016-9602-2
- West, S., & Friedline, T. (2016). Coming of Age on a Shoestring Budget: Financial Capability and Financial Behaviors of Lower-Income Millennials. Social Work, 61(4), 305–312. https://doi.org/10.1093/sw/sww057
- Xiao, J. J., & O’Neill, B. (2018). Mental accounting and behavioural hierarchy: Understanding consumer budgeting behaviour. International Journal of Consumer Studies, 42(4), 448–459. https://doi.org/10.1111/ijcs.12445
References
Ahbabi, S. A. Al, Singh, S. K., Balasubramanian, S., & Gaur, S. S. (2019). Employee perception of impact of knowledge management processes on public sector performance. Journal of Knowledge Management, 23(2), 351–373. https://doi.org/10.1108/JKM-08-2017-0348
Albulescu, C. T. (2020). Coronavirus and Financial Volatility: 40 Days of Fasting and Fear. In SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3550630
Apostolou, B., Dorminey, J. W., & Hassell, J. M. (2020). Accounting education literature review (2019). Journal of Accounting Education, 51(C), 1–27. https://doi.org/10.1016/j.jaccedu.2020.100670
Arifin, A. Z. (2018). Influence of financial attitude, financial behavior, financial capability on financial satisfaction. Proceedings of the 15th International Symposium on Management (INSYMA 2018), 186, 100–103. https://doi.org/10.2991/insyma-18.2018.25
Barbić, D. (2017). Investigating the Role of Financial Knowledge, Financial Skills and Behavioral Control in Explaining Individuals’ Successfulness in Managing Personal Finances. 4th International Conference on Humanities, Social Sciences and Education (ICHSSE-17), 22–27. https://doi.org/10.15242/heaig.h0317436
Belkaoui, A., & Karpik, P. G. (1989). Determinants of the Corporate Decision to Disclose Social Information Information. Accounting, Auditing & Accountability Journal, 2(1). https://doi.org/10.1108/09513578910132240
Berber, N., Slavić, A., & Slavić, A. (2020). Relationship between Perceived Teamwork Effectiveness and Team Performance in Banking Sector of Serbia. Sustainability, 12(20), 8753. https://doi.org/10.3390/su12208753
Bjekić, R., Jelača, M. S., Berber, N., & Aleksić, M. (2021). Factors Affecting Entrepreneurial Intentions of Faculty Students. Management: Journal Of Sustainable Business And Management Solutions In Emerging Economies, 26(2), 1–14. https://doi.org/10.7595/management.fon.2020.0024
Chen, J.-L. (2016). Effects of Knowledge Management on the Operational Performance of the B&B Industry. International Journal of Marketing Studies, 8(4), 67–76. https://doi.org/10.5539/ijms.v8n4p67
Chen, M.-H., Wang, H.-Y., & Wang, M.-C. (2018). Knowledge sharing, social capital, and financial performance: the perspectives of innovation strategy in technological clusters. Knowledge Management Research & Practice, 16(1), 89–104. https://doi.org/10.1080/14778238.2017.1415119
Dwianika, A., Murwaningsari, E., & Suparta, W. (2020). ANALYSIS OF WATER AWARENESS, ACCOUNTABILITY, AND GOVERNANCE TO IMPROVE SUSTAINABILITY OF FIRM’S PERFORMANCE IN URBAN AREAS. Geographia Technica, 15(1), 35–42. https://doi.org/10.21163/GT_2020.151.04
Eşitti, B., & Kasap, M. (2020). The impact of leader–member exchange on lodging employees’ dynamic capacities: The mediating role of job satisfaction. Tourism and Hospitality Research, 20(2), 237–244. https://doi.org/10.1177/1467358419826397
Fong, P. S. W. (2003). Knowledge creation in multidisciplinary project teams: an empirical study of the processes and their dynamic interrelationships. International Journal of Project Management, 21(7), 479–486. https://doi.org/10.1016/S0263-7863(03)00047-4
Friedline, T., & West, S. (2016). Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors. Journal of Family and Economic Issues, 37, 649–671. https://doi.org/10.1007/s10834-015-9475-y
Gašić, D., & Berber, N. (2021). The Influence of Flexible Work Arrangement on Employee Behavior During the COVID-19 Pandemic in the Republic of Serbia. Management: Journal Of Sustainable Business And Management Solutions In Emerging Economies, 26(3), 73–88. https://doi.org/10.7595/management.fon.2021.0026
Giles, B., Goods, P. S. R., Warner, D. R., Quain, D., Peeling, P., Ducker, K. J., Dawson, B., & Gucciardi, D. F. (2018). Mental toughness and behavioural perseverance: A conceptual replication and extension. Journal of Science and Medicine in Sport, 21(6), 640–645. https://doi.org/10.1016/j.jsams.2017.10.036
Grubor, A., Berber, N., Aleksić, M., & Bjekić, R. (2020). Uticaj korporativne društvene odgovornosti na organizacione performanse - istraživanje u AP Vojvodini. Анали Економоског Факултета у Суботици – The Annals of the Faculty of Economics in Subotica, 56(43), 3–13. https://scindeks.ceon.rs/Article.aspx?artid=0350-21202043003G
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). Pearson Education.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). SAGE Publications. https://books.google.co.id/books?id=C%5C_EmjgEACAAJ
Hakansson, N. H. (1978). Review Article: Where We are in Accounting: A Review of “Statement on Accounting Theory and Theory Acceptance.” The Accounting Review, 53(3), 717–725. http://www.jstor.org/stable/245678
Hambrick, D. C. (2007). Upper Echelons Theory: An Update. Academy of Management Review, 32(2), 334–343. https://doi.org/10.5465/AMR.2007.24345254
Han, Y., & Hong, S. (2019). The Impact of Accountability on Organizational Performance in the U.S. Federal Government: The Moderating Role of Autonomy. Review of Public Personnel Administration, 39(1), 3–23. https://doi.org/10.1177/0734371X16682816
Kishan, K., & Alfan, E. (2019). Malaysian Individual Investors: What Are the Factors That Influence Their Financial Statement Usage? Asian Journal of Accounting Perspectives, 12(1), 22–48. https://doi.org/10.22452/AJAP.vol12no1.2
Liu, P., Feng, Y., Li, A., Liu, W., & Xie, J. (2019). Disclosing behavioral anomalies in economic management: Implications for mental accounting theory. Advances in Psychological Science, 27(3), 406–417. https://doi.org/10.3724/SP.J.1042.2019.00406
Malmi, T., & Granlund, M. (2009). In Search of Management Accounting Theory. European Accounting Review, 18(3), 597–620. https://doi.org/10.1080/09638180902863779
Manaf, H. A., Armstrong, S. J., Lawton, A., & Harvey, W. S. (2018). Managerial Tacit Knowledge, Individual Performance, and the Moderating Role of Employee Personality. International Journal of Public Administration, 41(15), 1258–1270. https://doi.org/10.1080/01900692.2017.1386676
Mathieu, J. E., Heffner, T. S., Goodwin, G. F., Salas, E., & Cannon-Bowers, J. A. (2000). The influence of shared mental models on team process and performance. Journal of Applied Psychology, 85(2), 273–283. https://doi.org/10.1037/0021-9010.85.2.273
Mistry, V., Sharma, U., & Low, M. (2014). Management accountants’ perception of their role in accounting for sustainable development: An exploratory study. Pacific Accounting Review, 26(1/2), 112–133. https://doi.org/10.1108/PAR-06-2013-0052
Mitchell, R., & Nicholas, S. (2006). Knowledge Creation in Groups: The Value of Cognitive Diversity, Transactive Memory and Open‑mindedness Norms. The Electronic Journal of Knowledge Management, 4(1), 67–74. https://academic-publishing.org/index.php/ejkm/article/view/737
Paterson, A., Yonekura, A., Jackson, W., & Jubb, D. (Eds.). (2018). Contemporary Issues in Social Accounting. Goodfellow Publishers Ltd.
Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151, 451–471. https://doi.org/10.1007/s10551-016-3229-0
Potocki, T., & Cierpiał-Wolan, M. (2019). Factors shaping the financial capability of low-income consumers from rural regions of Poland. International Journal of Consumer Studies, 43(2), 187–198. https://doi.org/10.1111/ijcs.12498
Reagans, R., & Zuckerman, E. W. (2001). Networks, Diversity, and Productivity: The Social Capital of Corporate R&D Teams. Organization Science, 12(4), 393–521. https://doi.org/10.1287/orsc.12.4.502.10637
Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The Influence of Intellectual Capital towards Financial Performance with Brand Value as an Intervening Variable. Quality - Access to Success, 20(168), 79–85. https://www.researchgate.net/profile/Iskandar-Muda/publication/330883138_The_influence_of_intellectual_capital_towards_financial_performance_with_brand_value_as_an_intervening_variable/links/5ca0c45992851cf0aea431d4/The-influence-of-intellectual-capital-towards-financial-performance-with-brand-value-as-an-intervening-variable.pdf
Sherraden, M. S. (2010). Financial Capability: What is It, and How Can It Be Created? (10–17; CSD Working Papers No. 10-17). https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1643&context=csd_research
Taber, K. S. (2018). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education, 48, 1273–1296. https://doi.org/10.1007/s11165-016-9602-2
West, S., & Friedline, T. (2016). Coming of Age on a Shoestring Budget: Financial Capability and Financial Behaviors of Lower-Income Millennials. Social Work, 61(4), 305–312. https://doi.org/10.1093/sw/sww057
Xiao, J. J., & O’Neill, B. (2018). Mental accounting and behavioural hierarchy: Understanding consumer budgeting behaviour. International Journal of Consumer Studies, 42(4), 448–459. https://doi.org/10.1111/ijcs.12445