Research Aims: The objective of this study is to examine the relationship ‎between Strategic Management Accounting (SMA) information, Knowledge Management (KM), and the performance of ‎Malaysian hospitals.

Design/methodology/approach: A survey is employed, and data is collected using self- administered questionnaires. Responses from 95 Malaysian private hospitals were ‎analysed using Partial Least Squares (PLS) 3.0.

Research Findings: The findings indicate that SMA ‎information positively affects ‎performance, and KM mediates the ‎relationship between SMA information and interpretation.

Theoretical Contribution/Originality: This study utilised the Resource-Based View (RBV) theory to explain SMA information as a resource and KM as a capability that impacts the competitive advantage of organisations. This study ‎contributes to the line of literature on SMA information and ‎KM in the healthcare sector.

Managerial Implication in the South East Asian Context: Findings of this study can be used by managers to improve SMA ‎information and KM in their organisations.

Research limitation & Implications: Firstly, the data were collected from a single sector, the healthcare sector, in a developing economy and focused on hospitals. It ‎may be inappropriate for the results of this study to be used for other sectors, such as industrial sectors or in other countries. ‎Secondly, the results from path analysis do not explain for sure how ‎these independent variables influence the dependent variables. ‎Although the path analysis can reveal the significant relationships between the independent and dependent variables, it is insufficient to provide subjective information that may need to ‎be addressed using a qualitative method.


Abdul Rahman, I. K., Azhar, Z., Abdul Rahman, N. H. & Mohd Daud, N. H. (2012). Strategic management accounting and benchmarking practices in Malaysian hospitals. Journal of Applied Sciences Research, 8(3), 1665–1671.

Ahmad, K. (2017). The Implementation of Management Accounting Practices and its Relationship with Performance in Small and Medium Enterprises. International Review of Management and Marketing, 7(1), 342–353.

Ahmed, M. S. & Shoaib, M. (2014). Impact of knowledge management on organizational performance: Overview. Journal of Basic and Applied Scientific Research, 4(6), 277–282.

Al Lami, M.F.F., Maelah, R. Ghassan, G. (2019). Management accounting information usefulness and cloud computing qualities among small medium enterprises. International Journal of Management Studies, 26(1), 1-31.

Alaarj, S., Abidin-mohamed, Z., Salwa, U. & Ahmad; (2016). Mediating role of trust on the effects of knowledge management capabilities on organizational performance. Procedia - Social and Behavioral Sciences, 235(12), 1–10.

Alavi, M., & Leidner, D. E. (2001). Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS quarterly, 25(1), 107-136.

Ali, N. N., Tretiakov, A., Whiddett, D. & Hunter, I. (2017). Knowledge management systems success in healthcare: Leadership matters. International Journal of Medical Informatics, 97, 331–340.

Antunes, M. G., Quirós, J. T. & Justino, M. do R. F. (2017). The relationship between innovation and total quality management and the innovation effects on organizational performance. International Journal of Quality and Reliability Management, 34(9), 1474–1492.

Askarany, D. (2016). Attributes of Innovation and Management Accounting Changes. Contemporary Management Research, 12(4), 455–466.

Auzair, S., Amiruddin, R., Majid, A. A. & Maelah, R. (2013). Linking business strategy to management accounting: A study in Malaysian service organizations. Jurnal Pengurusan, 37, 45–52.

Batista, F. F., & Matos, F. (2014). Knowledge Management in Public Administration: Brazil Versus Portugal. Proceedings of the 15th European Conference on Knowledge Management. Santarém, Portugal.

Boyer, K. K., Gardner, J. W., & Schweikhart, S. (2012). Process quality improvement: An examination of general vs. outcome-specific climate and practices in hospitals. Journal of operations management, 30(4), 325-339.

Brandt, T., & Lim, M. (2012). Market watch 2012: The environmental sector in Malaysia. Kuala Lumpur Convention Centre, Kuala Lumpur.

Byukusenge, E., Munene, J. & Orobia, L. (2016). Knowledge management and business performance: Mediating effect of innovation. Journal of Business and Management Sciences, 4(4), 82–92.

Cadez, S. & Guilding, C. (2012). Strategy, strategic management accounting and performance: a configurational analysis. Industrial Management & Data Systems, 112(3), 484–501.

Chang, T. & Chuang, S. (2011). Performance implications of knowledge management processes: Examining the roles of infrastructure capability and business strategy. Expert systems with applications, 38, 6170–6178.

Chen, L. & Fong, P. (2012). Revealing performance heterogeneity through knowledge management maturity evaluation: A capability-based approach. Expert Systems with Applications, 39(18), 13523–13539.

Chenhall, R. & Langfield-Smith, K. (1998). The relationship between strategic priorities, management techniques and management accounting: an empirical investigation using a systems approach. Accounting, Organizations and Society, 23(3), 243–264.

Choe, J. (2004). The relationships among management accounting information, organizational learning and production performance. The Journal of Strategic Information Systems, 13(1), 61–85.

Chong, C. W., Holden, T., Wilhelmij, P., & Schmidt, R. A. (2000). Where does knowledge management add value? Journal of intellectual capital, 1(4), 366-380.

Cinquini, L., & Tenucci, A. (2010). Strategic management accounting and business strategy: a loose coupling? Journal of Accounting & organizational change, 6(2), 228-259.

Civi, E. (2000). Knowledge management as a competitive asset: a review. Marketing Intelligence & Planning, 18(4), 166-174.

Collier, P. & Gregory, A. (1995). Strategic management accounting: A UK hotel sector case study. International Journal of Contemporary Hospitality Management, 7(1), 16–21.

Dearman, D. T., & Shields, M. D. (2001). Cost knowledge and cost‐based judgment performance. Journal of management accounting research, 13(1), 1-18.

Dearman, D., Lechner, T. A., & Shanklin, S. B. (2018). Demand for management accounting information in small businesses: Judgment performance in business planning. International Journal of the Academic Business World, 12(1), 93-102.

Dobrzykowski, D. D., McFadden, K. L., & Vonderembse, M. A. (2016). Examining pathways to safety and financial performance in hospitals: A study of lean in professional service operations. Journal of operations management, 42(1), 39-51.

dos Santos, A. C., Lavarda, C. E. F. & Marcello, I. E. (2014). The relationship between cost management knowledge and budgetary participation with managers’ performance. Revista Brasileira de Gestao de Negocios, 16(50), 124–142.

Figueiredo, E., Pais, L., Monteiro, S. & Mónico, L. (2016). Human resource management impact on knowledge management Evidence from the Portuguese banking sector. Journal of Service Theory and Practice, 24(6), 497–528.

Ghani, N. A. B. M. Y., Hui, W. S., Rahman, I. K. A., Alam, N. O. S. & Tse, M. (2012). Style of information usage and use of accounting information: a Malaysian study. Asian Review of Accounting, 20(1), 20–33.

Gharakhani, D. & Mousakhani, M. (2012). Knowledge management capabilities and SMEs’ organizational performance. Journal of Chinese Entrepreneurship, 4(1), 35–49.

Giampaoli, D., Ciambotti, M. & Bontis, N. (2017). Knowledge management, problem solving and performance in top Italian firms. Journal of Knowledge Management, 21(2), 355-375.

Gold, A. H., Malhotra, A. & Segars, A. H. (2001). Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185–214.

Guilding, Cravens, K. S. & Tayles, M. (2000). An international comparison of strategic management accounting practices. Management Accounting Research, 11(1), 113–135.

Hair, J., Hult, T., Ringle, C. & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (Pls-Sem). Sage Publications.

Hammad, S. & Jusoh, R. (2010). Management accounting system for hospitals: a research framework. Industrial Management & Data Systems, 110(5), 762–784.

Hassan, H., Mohd. Amir, A. & Maelah, R. (2012). Peranan Pengukuran Prestasi Strategik ke Atas Kepuasan Kerja dan Kekuasaan Psikologi dalam Kalangan Pengurus dalam Sektor Automotif. Jurnal Pengurusan, 34, 65 - 78

Hassan, H., Saleh, N. M., Kamaluddin, A., & Hamzah, N. (2017). Exploring elements of human capital development of private hospitals in Malaysia: A qualitative approach. e-Academia Journal, 6(1).

Helm, S., Eggert, A., & Garnefeld, I. (2010). Modeling the impact of corporate reputation on customer satisfaction and loyalty using partial least squares. In Handbook of partial least squares (pp. 515-534). Springer, Berlin, Heidelberg.

Hong, P., Yang, M. & Dobrzykowski, D. (2014). Strategic customer service orientation, lean manufacturing practices and performance outcomes. Journal of Service, 25(5), 699–723.

Hoque, Z. & James, W. (2000). Linking balanced scorecard measures to size and market factors: impact on organizational performance. Journal of Management Accounting Research 12(1): 1–17.

Hsu, I., & Sabherwal, R. (2012). Relationship between intellectual capital and knowledge management: an empirical investigation. Decision Sciences, 43(3), 489–524.

Hunton, J. E., Wier, B. & Stone, D. N. (2000). Succeeding in managerial accounting. Part 2: a structural equations analysis. Accounting, Organizations and Society, 25(8), 751–762.

Hussein, B. A., Maelah, R. & Mohd Amir, A. (2016). Strategic management accounting information, cost management knowledge and performance ‎of healthcare organizations: a research framework. International Management and Accounting Conference (IMAC8).

Jusoh, R., & Parnell, J. A. (2008). Competitive strategy and performance measurement in the Malaysian context: An exploratory study. Management Decision, 46(1), 5-31.

Khasawneh, M. H., Tarhini, A., Akour, M. A. & Al-Salti, Z. (2016). Developing the Main Knowledge Management Process via Social Media in the IT Organisations: A Conceptual Perspective. International Journal of Business Administration, 7(5), 49–64.

Kirby, J. (2005). Toward a theory of high performance. Harvard business review, 83(7), 30-9.

Kuwaiti, M. E. (2004). Performance measurement process: definition and ownership. International Journal of Operations & Production Management, 24(1), 55-78.

Lachmann, M., Knauer, T. & Trapp, R. (2013). Strategic management accounting practices in hospitals: Empirical evidence on their dissemination under competitive market environments. Journal of Accounting & Organizational Change, 9(3), 336–369.

Lane, P. J., Salk, J. E. & Lyles, M. A., 2001. Absorptive capacity, learning, and performance in international joint ventures. Strategic Management Journal, 22(12), 1139–1161.

Langfield-Smith, K. (2008). Strategic management accounting: How far have we come in 25 years? Accounting, Auditing & Accountability Journal, 21(July), 204–228.

Leape, L., Berwick, D., Clancy, C., Conway, J., Gluck, P., Guest, J., ... & Isaac, T. (2009). Transforming healthcare: a safety imperative. BMJ Quality & Safety, 18(6), 424-428.

Lee, H. S. & Hong, S. A. (2014). Factors affecting hospital employees’ knowledge sharing intention and behavior, and innovation behavior. Osong Public Health and Research Perspectives, 5(3), 148–155.

Lee, V. H., Foo, A. T. L., Leong, L. Y., & Ooi, K. B. (2016). Can competitive advantage be achieved through knowledge management? A case study on SMEs. Expert Systems with Applications, 65, 136-151.

Ling, Y. H. (2013). The influence of intellectual capital on organizational performance—Knowledge management as moderator. Asia Pacific Journal of Management, 30(3), 937-964.

Lioukas, C. S., Reuer, J. J. & Zollo, M. (2016). Effects of Information Technology Capabilities on Strategic Alliances: Implications for the Resource-Based View. Journal of Management Studies, 53(2), 161–183.

Liu, S. & Deng, Z. (2015). Understanding knowledge management capability in business process outsourcing: a cluster analysis. Management Decision, 53(1), 124 -138.

Lord, B. R. (1996). Strategic management accounting: the emperor’s new clothes? Management Accounting Research, 7(April, 1994), 347–366.

Mahmood, N., Burney, A., Abbas, Z., & Rizwan, K. (2012). Data and knowledge management in designing healthcare information systems. International Journal of Computer Applications, 50(2), 34-39.

Mahoney, J. T. & Pandian, J. R. (1992). The resource based view within the conversation of strategic management. Strategic Management Journal, 13(5), 363–380.

Mao, H., Liu, S., Zhang, J., & Deng, Z. (2016). Information technology resource, knowledge management capability, and competitive advantage: The moderating role of resource commitment. International Journal of Information Management, 36(6), 1062-1074.

Mia, A.H. & Hasan, N. (2015). Impact of Knowledge Management on Organizational Performance-An Exploratory Study in Bangladesh. Bangladesh Journal of MIS, 7(2):1–21.

Mimi, O., Tong, S. F., Nordin, S., Teng, C. L., Khoo, E. M., Abdul-Rahman, A., ... & Fauziah, Z. E. (2011). A comparison of morbidity patterns in public and private primary care clinics in Malaysia. Malaysian family physician: the official journal of the Academy of Family Physicians of Malaysia, 6(1), 19.

Mohammed, B.A.H, Maelah, R., & Amir, A.M. (2019). Strategic Management Accounting Information and Performance of Private Hospitals in Malaysia. International Journal of Economics, Management and Accounting, 27, 473-502.

Naranjo‐Gil, D., & Hartmann, F. (2006). How top management teams use management accounting systems to implement strategy. Journal of Management accounting research, 18(1), 21-53.

Nik Abdullah, N. H. (2020). Assessing Strategic Management Accounting Practices in Public Interest Companies in Malaysia. Indonesian Journal of Economics, Social, and Humanities, 2(1), 13–25.

Nilakanta, S., Miller, L., Peer, A., & Bojja, V. M. (2009, January). Contribution of knowledge and knowledge management capability on business processes among healthcare organizations. In 2009 42nd Hawaii International Conference on System Sciences (pp. 1-9). IEEE.

Nonaka, I., & Lewin, A. Y. (1994). Dynamic theory knowledge of organizational creation. Organization Science, 5(1), 14-37.

Noordin, R., Zainuddin, Y. & Tayles, M. (2009). Strategic management accounting information elements: Malaysian evidence. Asia-Pacific Management Accounting Journal, 4(1), 17–34.

Noordin, R., Zainuddin, Y., Fuad, Mail, R. & Sariman, N. K. (2015). Performance Outcomes of Strategic Management Accounting Information Usage in Malaysia: Insights from Electrical and Electronics Companies. Procedia Economics and Finance, 31(15), 13–25.

Noruzy, A., Dalfard, V. M., Azhdari, B., Nazari-Shirkouhi, S. & Rezazadeh, A. (2013). Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms. International Journal of Advanced Manufacturing Technology, 64(5–8), 1073–1085.

Nuhu, N. A., Baird, K. & Appuhami, R. (2016). The association between the use of management accounting practices with organizational change and organizational performance. Advances in Management Accounting, 26, 67–98.

Obeidat, B. Y., Abdallah, A., Aqqad, N., Hakeem, A., Akhoershiedah, O. & Maqableh, M. (2017). The effect of intellectual capital on organizational performance: the mediating role of knowledge sharing. Communications and Network, 9(1), 1–27.

Obeidat, B. Y., Hashem, L., Alansari, I., Tarhini, A. & Al-Salti, Z., 2016. The effect of knowledge management uses on total quality management practices: A theoretical perspective. Journal of Management and Strategy, 7(4), 18–29.

Oliver, S., & Kandadi, K. R. (2006). How to develop knowledge culture in organizations? A multiple case study of large distributed organizations. Journal of knowledge management, 10(4), 6-24.

Ong, S. Y. Y., Janudin, S. E., Habidin, N. F. & Fuzi, N. M. (2019). Environmental management accounting practices, environmental management system and environmental performance for the Malaysian manufacturing industry. International Journal of Business Excellence, 18(1), 120.

Pronovost, P. J., Berenholtz, S. M., Goeschel, C. A., Needham, D. M., Sexton, J. B., Thompson, D. A., ... & Hunt, E. (2006). Creating high reliability in health care organizations. Health services research, 41(4p2), 1599-1617.

Rahman, N. A. A. & Ramli, A. (2016). Entrepreneurial Orientation, Strategic Management Accounting Practices, Innovation, and Firm Performance: Craft Industry Perspective. Proceedings of the ASEAN Entrepreneurship Conference, 179–191.

Rashid, M.M., Ali, M.M. & Hossain, D.M. (2020a), Revisiting the relevance of strategic management accounting research. PSU Research Review, 4(2), 129-148.

Rashid, M.M., Ali, M.M. and Hossain, D.M. (2020b). Strategic management accounting practices: a literature review and opportunity for future research. Asian Journal of Accounting, 6(1), 109-132.

Rickwood, C. P., Coates, J. B., & Stacey, R. J. (1990). Stapylton: strategic management accounting to gain competitive advantage. Management Accounting Research, 1(1), 37-49.

Roshan, T. M., Rosline, H., Ahmed, S. A., Rapiaah, M., & Khattak, M. N. (2009). Response rate of Malaysian blood donors with reactive screening test to transfusion medicine unit calls. Southeast Asian journal of tropical medicine and public health, 40(6), 1315.

Said, J., Hui, W. S., Othman, R. & Taylor, D. (2010). The Mediating Effects of Organizational Learning Orientation on the Relationship Between Strategic Management Accounting Information Use and Organizational Performance. Asia-Pacific Management Accounting Journal, 5(2), 11–29.

Said, J., Hui, W. S., Othman, R. & Taylor, D. (2012). Strategic management accounting and information technology competency on customer service process performance in local government agencies. Malaysian Accounting Review, 11(1), 91–122.

Sandhawalia, B. S., & Dalcher, D. (2011). Developing knowledge management capabilities: a structured approach. Journal of Knowledge Management, 15(2), 313-328.

Santos, A. C. D., Lavarda, C. E. F., & Marcello, I. E. (2014). The relationship between cost management knowledge and budgetary participation with managers’ performance. Revista Brasileira de Gestão de Negócios, 16, 124-142.

Sharp, D. (2003). Knowledge management today: challenges and opportunities. Information systems management, 20(2), 32-37.

Simmonds, K. (1982). Strategic management accounting for pricing: a case example. Accounting and Business Research, 12(47), 206-214.

Sinnadurai, J. T. S. & Fong, L. Y. (2015). Leadership approaches to address performance management & appraisal issues in Malaysia. International Journal of Scientific and Research Publications, 5(4), 1–4.

Stock, G. N. & McFadden, K. L. (2017). Improving service operations: linking safety culture to hospital performance. Journal of Service Management, 28(1), 57–84.

Sucahyo, Y. G., Utari, D., Budi, N. F. A., Hidayanto, A. N. & Chahyati, D. (2016). Knowledge management & e-learning organizational learning and non-financial performance. Knowledge Management & E-Learning, 8(2), 387–413.

Tanriverdi, H. (2005). Information technology relatedness knowledge management capability, and performance of multibusiness firms. MIS Quarterly, 29(2), 311–334.

Teece, D. J. (2000). Strategies for managing knowledge assets: the role of firm structure and industrial context. Long range planning, 33(1), 35-54.

Trivellas, P., Kakkos, N., Vasiliadis, L., & Belias, D. (2017). Sustainability, social marketing and host attitudes about Tourism in the city of Larissa. In Strategic Innovative Marketing (pp. 89-95). Springer, Cham.

Tseng, S.M. & Lee, P.S. (2014). The effect of knowledge management capability and dynamic capability on organizational performance. Journal of Enterprise Information Management, 27(2), 158–179.

Tseng, S.M. (2009). A study on customer, supplier, and competitor knowledge using the knowledge chain model. International Journal of Information Management, 29(6), 488–496.

Villar, C., Alegre, J. & Pla-Barber, J., 2014. Exploring the role of knowledge management practices on exports: A dynamic capabilities view. International Business Review, 23(1), 38–44.

Wachter, R. M. (2010). Patient safety at ten: unmistakable progress, troubling gaps. Health affairs, 29(1), 165-173.

Wu, I.-L. & Chen, J. L. (2014). Knowledge management driven firm performance: the roles of business process capabilities and organizational learning. Journal of Knowledge Management, 18(6), 1141–1164.

Yang, L.-R., Huang, C.-F. & Hsu, T.-J. (2014). Knowledge leadership to improve project and organizational performance. International Journal of Project Management, 32(1), 40–53.

Zakaria, M. (2015). Strategic management accounting information usage and the performance of SMEs in Malaysia. International Journal of Science Commerce and Humanities, 3(1), 99–113.

Zheng, W., Yang, B. & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), 763–771.