Intellectual capital and performance measurement systems in Iran

Purpose This paper seeks to empirically explore how the effect of intellectual capital on organizational performance is indirect and mediated through performance measurement systems. Design/methodology/approach DData was collected from a survey of 128 chief financial officers (CFOs) of Iranian publicly-listed companies. Hypotheses were tested using partial least squares (PLS) regression, a structural modeling technique which is appropriate for highly complex predictive models. Findings Results from the structural model indicate that, in general, companies with a higher level of intellectual capital place a premium on the balanced use of performance measurement systems in a diagnostic and interactive style. Furthermore, the results provide some evidence that IC is indirectly associated with organizational performance through the intervening variable of the balanced use of interactive and diagnostic performance measurement systems. Practical implications This study sheds light on the issue of how senior man...

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