The effect of Human Capital, Marketing Orientation and Information Technology toward Competitive Advantage through linkage Financial Performance of Accounting Firms in Thailand

Main Article Content

Anongwan Upradit
Boonthawan Wingwon
Jongkolbordin Saengadsapaviriy

Abstract

The objectives of this research were to study 1) the effect of human capital, marketing orientation, information technology and financial performance towards competitive advantage of accounting firms in Thailand and 2) analysis linkage of factors towards financial performance of accounting firms in Thailand. The samples were 352 heads of accounting firms. The research instrument was questionnaire, and the descriptive statistics for data analysis were mean, standard deviation, while inferential statistics was analysis of structural equation model. The analysis of structural equation model revealed that financial performance showed direct effect towards competitive advantage, marketing orientation showed direct effect towards financial performance, information technology showed direct effect towards competitive advantage and financial performance. Finally, human capital showed direct effect towards competitive advantage and financial performance. The linkage analysis indicated that human capital, marketing orientation, information technology and financial performance showed direct effect towards competitive advantage at significance level of .05, except marketing orientation showed indirect effect towards competitive advantage. Therefore, developing strategies for internal organization management is crucial to an increase of performance efficiency for competitive advantage amid the changing situation.

Downloads

Download data is not yet available.

Article Details

How to Cite
Upradit, A., Wingwon, B., & Saengadsapaviriy, J. (2020). The effect of Human Capital, Marketing Orientation and Information Technology toward Competitive Advantage through linkage Financial Performance of Accounting Firms in Thailand. Journal of Management Science Chiangrai Rajabhat University, 15(2), 19–45. Retrieved from https://so03.tci-thaijo.org/index.php/jmscrru/article/view/210627
Section
Research Articles
Author Biographies

Anongwan Upradit, Lampang Rajabhat University

Ph.D.Candidate (Management), Faculty of Management Sciences, Lampang Rajabhat University. (2019)

Boonthawan Wingwon

Ph.D. (Administration), Ramkhamhaeng University, (2007). Currently a Associate Professor in Faculty of Management Sciences, Lampang Rajabhat University.

Jongkolbordin Saengadsapaviriy

Ph.D. (Computer and Engineering Management) Assumption University (2012). Currently Retired.

References

Ali Shah, S. N., & Dubey, S. (2013). Market Orientation and Organizational Performance of Financial Institutions in United Arab Emirates. Journal of Management & Public Policy. 4(2). 17-27.

Al-Sharafat, A. (2017). The Impact of Human Capital Development on the Financial Performance of Agricultural Enterprises: Application on Broiler Industry. International Journal of Business and Social Science. 8(3). 179-186.

Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management. 17(1). 99-120.

Buli, B. M. (2017). Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry: Evidence from Ethiopian enterprises. Management Research Review. 40( 3). 292-309.

Chairat, S., Sewetomboon, K.& Songsiroj, N. (2012). Relationship between strategic information systems and competitive advantage of telecommunication business in Thailand. Journal of Accounting and

Management. 4(1). 69-78. (in Thai).

Chompuka, P. (2010). Organization And Management. Bangkok : McGraw-Hill. (in Thai).

Cortina, J.M. (1993). What Is Coefficient Alpha: An Examination of Theory and Applications?. Journal of Applied Psychology. 78(1). 98-104.

Craciun, E. (2015). Human Capital -A Quality Factor For The Competitiveness Of IT Companies. Manager Journal. 21(1). 44-51.

Cronbach, L.J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika. 16(3). 297-334.

Department of Business Development. (2017). List of accounting offices in each province. Retrieved April 20, 2017, from http://www.dbd.go.th/ewt_news.php?nid=469403169&filename=index. (in Thai).

Farhanghi, A. A. , Abbaspour, A., & Ghassemi, R. A. (2013). The Effect of Information Technology on Organizational Structure and Firm Performance: An Analysis of Consultant Engineers Firms (CEF) in Iran. Procedia - Social and Behavioral Sciences, 81(2013). 644-649.

Fawcett, S.E., Magnan, G.M., & McCarter, M.W. (2008). Benefits, barriers, and bridges to effective supply chain management. An International Journal. 13(1). 35-48.

Felício, J. A., Couto, E., & Caiado, J.. (2014). Human capital, social capital and organizational performance. Management Decision. 52(2) : 350-364.

Jain, P., Vyas, V., & Roy, A. (2017). Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs. Social Responsibility Journal. 13(1). 1-23.

Jaiyen, P, et al. (2017). Accountants with Modern Technology. Journal of Pacific Institute of Management Science. 3(1). 196-207. (in Thai).

Jaruvanstit, S. (2016). Do you have a problem with in accounting?. Retrieved December 1, 2559, from http://tac.prosmes.com/Article/Detail/20435. (in Thai).

Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal. 55(6). 1264-1294.

Heiens, R.A., & Pleshko, L.P.(2011). A contingency theory approach to market orientation and related marketing strategy concepts : Does fit relate to profit performance?. Management & Marketing, 6(1). 19-34.

Kaplan, R. S. & Norton, D. P. (1996). Linking the balanced scorecard to strategy. California Management Review. 39(1). 53–79.

Kasorn, K., Khanchanapong, T. & Srivoravila, N. (2014). The Effect of Market and Learning Orientations on Competitive Capabilities of the Thai Automobile Industry. SUTHIPARITHAT Journal. 28(85).

-144. (in Thai).

Keskin, H. (2006). Market orientation, learning orientation, and innovation capabilities in SMEs: An extended model. European Journal of Innovation Management. 9(4). 396-417.

Kircar, A. H., Jayachandran, S. & Bearden, W. O. (2005). Market Orientation: a meta-analytic review and assessments and impact on performance. Journal of marketing. 69(April 2005). 24-41.

Kongkaew, C. (2016). Management Accounting ... Victory SMEs Arena AEC. Retrieved December 1, 2016, from http://www.tacthai.com/ArticleInfo.aspx?ArticleTypeID=2195& ArticleID=6570. (in Thai).

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement. 30. 607-610.

Lai, F., Zhao, X. & Wang, Q. (2006). The impact of information technology on the competitive advantage of logistics firms in China. Industrial Management & Data Systems. 106(9). 1249- 1271.

Leekpai, P. (2013). Antecedents to Innovativeness and Impact on Firm Performance. Executive Journal. 33(4). 55-63. (in Thai).

Likert, R. N. (1970). A technique for the measurement of attitude. Attitude Measurement. Chicago : Ronal

McNally& Company.

López, S. P., & Alegre, J. (2012). Information technology competency, knowledge processes and firm performance. Industrial Management & Data Systems, 112 (4): 644-662.

Makido, T., Kimura, S. & Mourdoukoutas, P. (2003). IT and competitive advantage: the case of Japanese manufacturing companies. European Business Review. 15(5). 307-311.

Maneemai, P et al. (2016). QUALITY AND FACTORS AFFECTING QUALITY CONTROL PRACTICES OF THAI SMALL AND MEDIUM ACCOUNTING FIRMS. Modern management journal. 14(1). 117-128. (in Thai).

Maneerattanasak, U. & Keawchan, P. (2015). Accounting Outsourcing Services: Proactive Administration Strategies to Support the Growth of Small and Medium Enterprises (SMEs). MUT Journal of Business Administration. 12(2). 1-15. (in Thai).

Marimuthu, M., Arokiasamy, L. & Ismail, M. (2009). Human Capital Development and its impact on firm

performance: Evidence from development economics. The Journal of International Research. 2(8). 265-272.

Marriott, Neil & Marriott, Pru. (2000). Professional Accountants and the Development of a Management Accounting Service for the Small Firm: Barriers and Possibilities. Management Accounting Research. 11(4). 475-492.

Matchuang, O., Pratoom, K. & Chantharachaturaphat, P. (2015). The Relationship between Human Capital Management and Competitive Advantage of Small and Medium-Sized Enterprises (SMEs) in Northeast Thailand. Journal of Humanities and Social Sciences Mahasarakrm university. 34(4). 214-222. (in Thai).

Methisuwapha, S. (2015). The influences of key success factors on Thai accounting office performance for accommodating ASEAN economic community. SUTHIPARITHAT Journal. 29(92). 254-272. (in Thai).

Narver, J. C. & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing. 54(4). 20-35.

Nkundabanyanga, S K., Akankunda, B., Nalukenge, I. & Tusiime, I. (2017). The impact of financial management practices and competitive advantage on the loan performance of MFIs. International Journal of Social Economics. 44(1). 114-131.

Nuryaman. (2015). The Influence of Intellectual Capital on The Firm’s Value with The Financial Performance as Intervening Variable. Procedia-Social and Behavioral Sciences. 211(2015). 292- 298.

Peeyawan, P. & Nithirojtanat, K. (2015). Accounting Information System. Bangkok : Withayapat.

Phusitpochai, T. (2017). Accounting and Management for SMEs. Journal of Accounting Profession. 13(40). 76-81. (in Thai).

Phongsri, P. (2011). Educational Research. Bangkok : Darnsutha Press. (in Thai).

Pitelis, C. N. & Pseiridis, A. N. (1999). Transaction costs versus resource value. Journal of Economic Studies. 26(3). 221-240.

Ployhart, R. E. & Molitierno, T. P. (2011). Emergence of the human capital resource: A multilevel model. Academy of Management Review. 36(1). 127-150.

Porter, M. E. (1985). Competitive advantage creating and sustained superior performance. New York : The Free Press.

Rovinelli, R.J., & Hambleton, R.K. (1977). On the use of content specialists in the assessment of Criterion

referenced test item validity. Dutch Journal of Educational Research. 2. 49-60.

Sachitra, V. (2016). Review of Competitive Advantage Measurements:Reference on Agribusiness Sector. Journal of Scientific Research & Reports, 12(6): 1-11.

Sadeghimanesh, M., & Samadi, A. (2013).The Effect of IT (Information Technology) on Financial Performance of the Banks Listed in Tehran Stock Exchange. European Online Journal of Natural and Social Sciences, 2(3), Special Issue on Accounting and Management: 2911-2919.

Sambamurthy, V., Bharadwaj, A. & Grover, V. (2003). Shaping agility through digital options: conceptualizing the role of information technology in contemporary firms. MIS Quarterly. 27(2). 237-263.

Sawadrum, P. (2016). Quality system of accounting firms at Mueang and Siracha district Chonburi province. Modern Management Journal. 14(1). 51-66. (in Thai)

Sawangrat, N. (2015). Structural Effects of Entrepreneurship Market Orientation, Innovation Orientation and Learning Orientation on the Firm Performance. Veridian E-Journal, Silpakorn University. 8(3). 958-975. (in Thai)

Shounchupon, A. & Teerathanachaiyakun, K. (2015). CASUAL FACTORS INFLUENCING COMPETITIVE ADVANTAGD OF SERVICE LOGISTICS BUSINESS IN CENTRAL PARK OF THAILAND. VRU Research and Development Journal. 10(3). 21-29. (in Thai).

Sobel, M. E. (1982). Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models. Sociological Methodology. 13, 290-312.

Suvanich, W. (2012). Satisfaction with use of accounting services of legal person in Bangkok. The 2nd National Congress: Management and Importance of the ASEAN Economic Community. Bangkok : Siam University.

Talaja, A., Miočević, D., Alfirević, N., & Pavičić, J. (2017). Market Orientation, Competitive Advantage and Business Performance: Exploring the Indirect Effects. Drustvena Istrazivanja, 26(4) December 2017: 583-604.

Thipsorn, N, et al. (2015). Competitive Advantage by Strategic Marketing Management in Changing Economy Era of One Tambon One Product Business in Chiang Rai Province. Journal of Modern Management Science. 8(1). 153-166. (in Thai).

Thomyasirikun, S. (2016). The importance of accounting. Retrieved December 1, 2017, from http://tac.prosmes. com /Article/Detail/21284/ The importance of accounting. (in Thai).

Tripathy, S., Aich, S., Chakraborty, A., & Lee, G. M. (2016). Information technology is an enabling factor affecting supply chain performance in Indian SMEs: A structural equation modelling approach. Journal of Modelling in Management, 11(1): 269-287.

Vorhies, D. W. & Morgan, N. A. (2005). Benchmarking Marketing Capabilities for Sustainable Competitive Advantage. Journal of Marketing. 69(1). 80-94.

Umchowattana, C. (2011). Factors for considering the accounting work of the accounting firm in Bangkok. Bangkok : Thammasat University. (in Thai).

Yoo, D. K., & Park, J. A. (2007). Perceived service quality: Analyzing relationships Among employees, customers, and financial performance. International Journal of Quality & Reliability Management. 24(9). 908-926.

Waenkaeo, K. (2016). The effect of Cost Management Strategic Appropriateness on Firm Operational Performance and Competitive Advantage of Small and Medium Enterprises in Border trade Lower Northeastern Region. Modern Management Journal. 9(1). 46-64. (in Thai)

Wijetunge,W. (2016). Service Quality, Competitive Advantage and Business Performance in Service Providing SMEs in Sri Lanka. International Journal of Scientific and Research Publications, 6 (7): 720-728.

Wisetasing, A. (2013). Accounting for small and medium businesses in the area Phasi Charoen, Bangkok. Bangkok : Suan Sunandha Rajabhat University Research and Development Institute. (in Thai).

Wu, F., Yeniyurt, S., Kim, D. & Cavusgil, S.T. (2006). The impact of information technology on supply chain capabilities and firm performance: a resource-based view. Industrial Marketing Management. 35(4). 493-504.