The Impact of Intellectual Capital on Management Accounting Practices and Firm Performance of Construction SMEs in Central Java
Intellectual capital is considered the foundation for gaining competitive advantage for the company. This study aims to analyze and evaluate how intellectual capital owned by construction and real estate sector companies affects the application of management accounting practices in company management and its impact on overall company performance. Data analysis in this study used a descriptive quantitative approach. A total of 42 respondents of real estate and construction businesses in Central Java were surveyed. The results of this study concluded that intellectual capital does not significantly affect the performance of construction and real estate SMEs in Central Java. However, intellectual capital significantly affects management accounting practices in these SMEs. Furthermore, management accounting practices significantly affect the performance of construction and real estate SMEs in Central Java. These results highlight the importance of good management accounting practices to improve the performance of these SMEs.
Keywords: Intellectual Capital, Management Accounting Practices, SME Performance, Strategic Management.
JEL Code: D83; M41; L25; L26; O34.
