The Effect of Corporate Strategy and Organizational Structure on Firm Performance：Focusing on the Mediating Effects of Accounting Information Characteristics and Management Innovation

Abstract

[Purpose]This study empirically examines the path through which firms’ strategic orientation and organizational structure lead to management innovation via the mediating role of management accounting information systems (MAIS), and the subsequent effect of management innovation on financial and non－financial performance. [Methodology]Using survey data collected from 228 Korean firms, hierarchical regression analysis and bootstrap－based mediation analysis (5,000 resamples) were conducted, along with reliability, validity, and common method bias tests. [Findings]Both strategic orientation and organizational structure had significant positive effects on management innovation. MAIS characteristics fully mediated the effect of strategic orientation on management innovation, while partially mediating the effect of organizational structure (mediation ratio of 42.8%); explanatory power increased substantially with the mediator included (R² from 0.298 to 0.500). Management innovation had significant positive effects on both financial and non－financial performance, with a slightly stronger effect on non－financial performance. [Implications]By empirically testing an integrated model linking strategy, organizational structure, and MAIS, this study clarifies mediating mechanisms that prior domestic studies examined only in isolation, and offers the practical implication that innovation strategies require complementary investment in accounting information systems to be effectively realized.