Information system assisted knowledge accounting and cognitive managerial implications

Abstract

Purpose This paper examines issues that focus on the importance of accounting data generated knowledge information and its role in modern business. The cognitive aspect of this research reflects the ability of companies and its employees to apply knowledge for managerial purposes using accounting data. Design/methodology/approach Using a questionnaire, a five-factor model related to information communication, information cognitive utilization, functional optimization, applicability and cognitive efficiency was created. Findings Findings present a series of complex correlations highlighting possible actions to utilize knowledge as a tool for management. Information is obtained regarding the management of knowledge and the adoption of information systems. Research limitations/implications The results reflect the limited implementation of intellectual capital practices and understanding of knowledge as a financial tool for executives and employees. Based on the above, an attempt was made to formulate the questions for the careful identification of the factors. Practical implications Rapid developments in information and communication technologies, together with a realization that knowledge is a resource of general and cost strategic importance, changed the operational structures of companies, shifting value from materials to intangible assets. This paper demonstrates how multiple variables are correlated and how small changes could help increase intellectual capital and facilitate the construction of knowledge based systems. Social implications The need for an accounting valuation of intellectual capital in order to present the true picture of business value is evident. This paper illustrates factors such as interactive communication and systematic cognitive efficiency or the monetization of information as a preliminary step for future valuation and management intellectual capital models. Originality/value Direct access to sufficient and reliable information, lead to the search for effective tools for the creation, aggregation and exchange of knowledge. The latter becomes a key goal for information systems. Emphasis is placed on the benefits and critical success factors of knowledge management systems, as essential information systems to support and enhance organizational processes.