INTRODUCTION
This
research raises issues related to the company's reputation. The company's
reputation is built on the perception of current external and internal stakeholders
that allow it to be positive or negative. In this sense, it can be
distinguished from concepts such as identity and image of the organization,
which are conceptualized from only one type of stakeholder (identity for
internal stakeholders and image for external ones). A company's reputation can
be learned as a function of image and identity. Identity is built within the
company, based on organizational culture. The reputation of the company is
built over time (historical component), which gives the concept of nature a
relatively more stable and enduring nature than imagery. The two concepts are
interrelated, where the company's reputation has been conceptualized as an
accumulation of image over the years The reputation of
the company can be influenced by changes occurring in its social environment,
or by the strategies carried out by the organization or its competitors.
Organizations that consider how to manage their own reputation in the best
possible way. The organization must have the capacity to diagnose how
stakeholders perceive it, then create an optimal strategy configuration in managing
the company's reputation on an ongoing basis.
The increase
in the reputation of the company is due to many factors, especially internal
factors. The implementation of environmentally friendly policies, not violating
legal norms and cultural norms that apply in which the company operates is a
competitive advantage for the company to survive and be sustainable.
Environmental and social issues cannot be ignored by the company, if it still
wants to be sustainable. The reputation of the company leads to many strategic
benefits. Reputation is a characteristic that signifies the behavior of the
company that becomes a barrier to competitors and as a source of competitive
advantage of the company (Deephouse, 2000; Fombrun, 1996; Roberts & Dowling, 2000).
The trend of managing a company's reputation has evolved, where stakeholder
perception has become more important to the company (Fombrun, Ponzi, & Newburry, 2015). Managers take a
more active, centralized, focused, and scientific approach to communicating
with stakeholders. The reputation of the company allows the company to increase
profitability, create competitive barriers and strengthen competitive
advantage. The reputation of the organization is a reflection of how various
stakeholders respond to it. An attitude towards a company's reputation can help
an organization gain trust and credibility in society, and help achieve goals.
Reputation can be thought of as a global perception or evaluation held by
constituents regarding a company's performance and attributes. Reduced privacy
and increased accountability have made more proactive strategies necessary for
organizations to prevent damage to their image and reputation.
Knowledge
management claims that knowledge is a competitive advantage that can last a
long time (Nonaka, Byosiere, Borucki, & Konno, 1994). Thus, the ability
of knowledge creation and utilization becomes very important in companies when
seeking competitive advantage (Helm, 2011). Organizations
face challenges when it comes to managing reputations that are influenced by a
variety of outside sources, apart from within the company. Symmetrically
undistributed information can influence and mobilize markets with their
respective interpretations (Fombrun et al., 2015). Trust is a
business choice strategy that has an impact not only on the company, but also
for stakeholders. The decision was not made looking at only one aspect of
finance, but also from the non-financial aspect. Several studies have included
knowledge management as one of the competitive advantages for companies in
improving the company's reputation Knowledge management becomes very important
for the survival and sustainability of the company. Have the ability to manage
internal knowledge and access external knowledge as one of the most strategic
and challenging tasks (Chopra et al., 2021; Ginesti, Caldarelli, & Zampella, 2018;
Mero�o‐Cerdan, Lopez‐Nicolas, & Sabater‐S�nchez, 2007;
Widanaputra, Widhyadanta, & Ratnadi, 2018)
The role of
professionalism internal accountants as one of the resources owned by the
company is becoming increasingly important from non-financial factors. This
point needs to be considered by managers to increase the value and transparency
of the company (Sisaye & Birnberg, 2010).
The role of accountants in the sustainability process lies beyond internal
processes. Accountants accomplish this mission through responsibility in
creating, improving and implementing sustainability infrastructure. Accountants
also contribute to the configuration and implementation of arrangements
required by changes in laws and regulations. Sustainability reporting can play
an important role in managing stakeholder opinion by improving the organization's
reputation (KPMG, 2014).
The dynamics of economic growth are always in line with the development of the
accounting profession. Accounting as a tool of accountability, develops in line
with the complexity of problems in the company. Methods of approach and
technology in the field of accounting are increasingly evolving which in turn
appears and develops in the discipline of management accounting. In line with
the development of the company's performance, the role of management
accountants must develop. Today management accountants are not only as providers
of accounting data, for decision making, but have become increasingly involved
in the decision-making process. Company managers in an effort to control and
direct the company's objectives in these increasingly complex business
transactions, urgently require the role of a comprehensive management
accountant (Cokins, 2014; Matambele & van der Poll, 2017; Mistry, Sharma, &
Low, 2014; Nguyen, 2018).
Researchers
and practitioners for years have been trying to gauge the company's reputation.
The need for high comparative action has been made abundantly clear in
conferences and journals for decades. However, there is still debate regarding
the lack of consensus about the dimensions and construction structure of the
company's sustainable reputation.
Based on the
explanations that have been stated before, the problem of this research can be
formulated:
1) Does
Knowledge Management affect the Reputation of a Sustainable Company?
2) Does the Role
of Management Accountant affect the Reputation of a Sustainable Company?
METHOD
This
research is designed to test hypotheses (hypothesis testing) where in data
analysis using structural equation modeling (SEM). A study hypothesis test has the
goal of explaining the characteristics of a cause-and-effect influence or
describing differences between groups or independence from two or more factors
in a situation.
This
research is a causality study to obtain empirical results of the influence of Knowledge
Management and the Role of Management Accountants on the Reputation of
Sustainable Companies Primary data obtained through a set of questionnaires
distributed to managers at the lower to peak levels in Indonesia. The sampling
technique used is purposive sampling, with a sampling period of March - June
2021. The analysis unit on this study is a lower to peak level manager.
Independent
variables consist of Knowledge Management, and the role of management
accountant. While the dependent variable of this study is the reputation of the
company is sustainable. The explanations related to each of the constructs in
this study and the scale of measurements used are described as follows.
�
A. Company�s
Sustainable Reputation
The Company's reputation is measured by 24 statement
items, of which 22 statement items were used by (Fombrun et al., 2015). Fombrun characterizes into 7 dimensions, namely Product
& Service (4 items), Innovation (3 items), Governance (2 items),
Citizenship (2 items), Workplace (3 items), Leadership (4 items), and
Performance (4 items). In this study using 3 dimensions, namely Product &
Innovation (8 items), Governance & Workplace (6 items), and Leadership
& Performance (10), by modifying 2 statement items is a novelty in this
study. The measurement scale is an interval scale with a score of 1 � 6, where:
score 1 = strongly disagrees; score 2 = disagree; score 3 = somewhat disagrees;
secore 4 = somewhat agree; score 5 = agree; and score
6 = strongly agree.
�
B. Knowledge
Management�
Knowledge management manages the knowledge resources
that the company has, which is related to decision making and corporate
governance in terms of planning, risk management and budgeting. Knowledge
management manages the creation of added value from knowledge and improved
performance in problem solving.
In this study, knowledge management was measured by 13
statement items, used by (Mero�o‐Cerdan et al., 2007)
as many as 12 items and divided into 3 dimensions, namely sharing (4 items),
storing (2 items), and learning (5 items). While in this study the division
remains 3 dimensions but there is a modification of 1 item of novelty statement.
The measurement scale is an interval scale with a score of 1 � 6.
C. Role of
Management Accountant
The position of management accountant is attached to
the company's core activities whether there is little or no face-to-face
interaction with clients. The role of management accountant is separated by
physical boundaries in the operation of the organization. Management
accountants have not been involved in the decision-making process in the past.
Today, managers consider that the role of management accountant is an integral
part of strategic decision making, including the reputation of the company.
In this study, the Role of Management Accountant was
measured by 11 statement items, of which 9 items were used by (Mistry et al., 2014), and
modified 2 new statement items. In this study, 11 items were divided into 2
dimensions, namely conventional and strategic. The measurement scale is an
interval scale with a score of 1 � 6, where: score 1 = strongly disagrees;
score 2 = disagree; score 3 = somewhat disagrees; secore
4 = somewhat agree; score 5 = agree; and score 6 = strongly agree.
The theoretical model in this study can be made with
the following equations:
RP = b0 + β1 KM + + β2 AM + + e0
���
KM = Knowledge Management
AM = The Role of Management Accountant
RP = Company�s Sustainable Reputation ��
b0 = Coefficient of constant model company�s
sustainable reputation ��
β1 = Coefficient of influence
of Knowledge Management on company�s
sustainable reputation
β2 = Coefficient of influence of
the role of management accountant on company�s
sustainable reputation
e0 = Error
�
RESULTS
AND DISCUSSION
A. Results
1.
Description of the Object
This research is causality
research using quantitative methods in collecting data. The data was
obtained through questionnaires collected from October 2021 to the third week
of December 2021. During this period, 252 respondents were obtained, but
because there were some respondents who did not fit the criteria, the data that
could be processed was 245. The process of selecting respondent data is:
Table 1
Respondent Selection
|
No.
|
Criterion
|
Amount of data
|
|
1.
|
Total number of respondents
|
252
|
|
2.
|
Respondents who are not manager level
|
(6)
|
|
3.
|
Respondents with a working period of
less than 5 years
|
(1)
|
|
4.
|
Total data
|
245
|
Source: data processed (2022)
A total of 6 respondents did not work at the
manager level, namely working as a lecturer, and 1 person had a working period
of less than 5 years, namely only working for 9 months. The respondents were
expelled because they were worried about not understanding the conditions that
occurred in the world of practice.
2. Demographics of Respondent
Demographics respondents explained the
characteristics of respondents in this study, consisting of gender, age,
company status, position, length of work, and length of work in the current
position. For positions, the length of work and length of work in the current
position, given an open statement, but grouped into certain intervals.
Table 2
Characteristics of Respondents
|
Characteristic
|
Frequency
|
Percentage
|
|
Gender
|
|
1.Men
|
164
|
66,94%
|
|
2. Women
|
81
|
33,06%
|
|
Total
|
245
|
100%
|
|
Ages
|
|
1. < 35 y.o
|
75
|
30,61%
|
|
2. 36 � 45 y.o
|
88
|
35,92%
|
|
3. 46 � 55 y.o
|
65
|
26,53%
|
|
4. 56 � 65 y.o
|
17
|
6,94%
|
|
5. > 65 y.o
|
0
|
0
|
|
Total
|
245
|
100%
|
|
Company
|
|
1. Private
|
180
|
73,47%
|
|
2. BUMN
|
65
|
26,53%
|
|
Total
|
245
|
100%
|
|
Status
|
|
1. Supervisor
|
41
|
16,73%
|
|
2. Middle Manager
|
136
|
55,51%
|
|
3. Board of Directors
|
68
|
27,76%
|
|
Total
|
245
|
100%
|
|
Long
of Work
|
|
1. 5 � 15 years
|
164
|
66,94%
|
|
2. 16 � 25 years
|
54
|
22,05%
|
|
3. 26 � 35 years
|
25
|
10,20%
|
|
4. > 35 years
|
2
|
8,10%
|
|
Total
|
245
|
100%
|
|
Long of Work in the current position
|
|
1. 0 -10 years
|
214
|
87,35%
|
|
2. 11 � 20 years
|
31
|
12,65%
|
|
3. > 20 years
|
0
|
0%
|
|
Total
|
|
100%
|
Source: data processed (2022)
3.
Analysis of Results
Data testing is first carried out factor
analysis tests and data quality tests, if passed, only hypothesis tests are
carried out. Absolute data quality tests are carried out to ensure that the
instrument used in measuring variables is correct (valid) and measuring
correctly (reliable), so, the steps taken are to perform validity tests and
reliability tests. While the hypothesis test is carried out with SEM using AMOS
software.
This Factor Analysis Test is used to see if the
statement items are in accordance with existing categories/dimensions. The
results of factor analysis using KMO and Bartlett tests show that the company's
reputation is sustainable formed into 3 groups / dimensions, namely product
dimensions & innovation (10 items), governance & workplace (6 items),
and leadership & performance (8 items). Knowledge management variables are
formed in 3 dimensions, namely the dimensions of sharing (4 items), storing (3
items) and learning (6 items). The management accountant role variable is
formed in 2 dimensions, namely the strategic role (5 items) and the conventional
role (6 items).�� The validity test is
performed to see if the statement items in the questionnaire are able to
measure the variables you want to measure. The validity test is used� Pearson
Correlation, where validity is obtained from comparing the value of
significance with a probability of 0.05. If the significance value of the <
0.05 and the value is positive, then the statement item is declared valid.
where: KM = knowledge management; AM = the role of management
accountant; RP = company�s sustainable reputation
Based on table 4.4, model regression of this
research can be draw as:
RP = 0,172 KM + 0,041 AM
From the above output, it can be seen that the
effective contribution of knowledge management variables and the role of
management accountants to the company's reputation variables is 83.4% and the
remaining 16.6% is influenced by the variation of changes in other variables
that are not included in the regression model. Based on table 4.4 above, it can
be seen that knowledge management (KM) variables have a positive effect on the
reputation of sustainable companies (RP), but the role of management
accountants (AM) has no effect on the reputation of sustainable companies.
B.
Discussion
1. Knowledge Management to Company�s Sustainable Reputation
Resource-Based View
theory states that resources provide a competitive advantage to organizations
that hold them. A sustainable competitive advantage can be gained by a company
from control over its resources and capabilities, especially if it is valuable,
rare, imperfect and difficult to replace. Companies in adopting sustainability
principles require proactive management of financial, human, environmental and
social capital and a shift from shareholders to stakeholder perspectives. The
principle of sustainability must be related to the business context, that is,
it must deal with the resulting problem (product-project/ service), how it is produced
(process), by whom (person) and its implications for stakeholders. Knowledge
management has a positive relationship with organizational effectiveness
through inspections of the capabilities of the Knowledge management
infrastructure has made a significant competitive advantage as the key to
management in the future.
2. The Role of Management Accountant to Company�s Sustainable Reputation
Resource-Based View theory is used to underlie
the exploitation of external opportunities for the use of existing resources,
rather than if it should try to acquire new skills for each different occasion.
Resources play a major role in helping the company to achieve higher
organizational performance/reputation. The position of management accountant is
attached to the company's core activities whether there is little or no face-to-face
interaction with clients. Today, managers consider that the role of management
accountant is an integral part of strategic decision-making, including the
reputation of the company (Milne,
1996). Accountants tend to understand that laws and
regulations and the image of the organization are important factors for the
organization to achieve a good corporate reputation. In addition to competitive
strengths, organizational culture and customs have an impact on the role and
position of management accountants.
CONCLUSION
From the results of this study show that knowledge management has
a positive effect on the reputation of a sustainable company, and the role of management
accountant has no effect on the reputation of the company.�� This research has several limitations,
namely in the demographics of respondents are not asked whether the length of
work in the current position due to mutations, promotions or moving jobs.
Because there are inconsistencies with the length of time the respondents work.
Implications of research results can be grouped into two, namely
theoretical (academic) implications and practical implications. The test results showed that knowledge
management had a positive effect on the company's sustainable reputation. The
application of soft skills is incorporated into all courses not only related to
the ethics of the profession that will be pursued by students. The ability of
students as future leaders must continue to be honed in order to become leaders
who have charisma in society, so as to motivate the surrounding community to
benefit not only humans but to all nature. Furthermore, this research adds
reference to research related to management accounting. The increasing importance
of the role of management accountants in the success of the company in the
future, but currently the profession as a management accountant is still few
compared to as an external auditor or tax expert.
Moreover, the practical implications including
business world, the results of the test in this study show that the more
advanced the technology, the easier it is for a person / organization to get or
share existing knowledge. The utilization of technology, strategies and
implementation of environmentally oriented policies is absolutely done to be
able to survive and be sustainable. Hiring and placing employees who have the
right soft skills must be done so as to make a useful leader for the
organization in the future.� While, for regulatory
policies related to sustainability must be implemented as well as possible, so
that the company does not only comply with policies that have been made by the
competent authorities. Arrangements or laws related to the environment that exist
today are still slashed, sharp down but blunted upwards.
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KNOWLEDGE MANAGEMENT AND THE ROLE
OF MANAGEMENT ACCOUNTANTS ON THE COMPANY'S SUSTAINABLE REPUTATION