Innovation capacity affects firm performance: the mediation role of management accounting information system

Abstract

This study explores the impact of innovation capacity on the performance of businesses in Vietnam, testing the mediating role of management accounting information systems in the relationship between innovation capacity and firm performance. Using mixed research methods including qualitative and quantitative research, Partial Least Squares Structural Equation Modeling (PLS-SEM) technique with a sample size of 195 businesses in Vietnam. Based on contingency theory; resource-based view; and benefit-cost relationship. Research results show that innovation capacity and management accounting information systems have a positive influence on firm performance. Furthermore, management accounting information systems also play a mediating role in the relationship between innovation capacity and firm performance. In the Vietnamese business context, there is little research on this topic, so the research has made a small contribution to filling the research gap. However, the study has some limitations such as using survey techniques at one point in time to determine cause and effect relationships.