Title: Validity of accounting model in the knowledge era

Authors: Ahmed A. Mohammad, Ebrahim Mansour, Farouk Missi

Addresses: MIS Department, Applied Science University (ASU) of Jordan, P.O. Box 166, Shafa'a Badraan, Amman 11931, Jordan. ' MIS Department, Applied Science University (ASU) of Jordan, P.O. Box 166, Shafa'a Badraan, Amman 11931, Jordan. ' Active Business Solution, 104 Queensway, London W2 3RR, UK

Abstract: Amid the tangible transformations within the knowledge era, seismic changes in the business model have taken place. These changes have led to the emergence of what is so called |knowledge business model| (KBM). Utilisation of a new business model includes unique challenges and opportunities. Knowledge assets and information technology are embodied as the driving forces beyond application of KBM. On the other hand, the emergence of a new business models has raised serious questions about the validity of logical components of conventional accounting model (CAM). This study seeks to explore the validity of the CAM as result for adopting KBM. Analysing huge body of accounting literature, knowledge management and innovation has shown milestones of what can be called knowledge accounting model (KAM). Statistical analysis of practitioners and professionals responses has shown a satisfactory rate of validity of CAM with the emphasis on adaptation of logical components of it to cope with knowledge necessities.

Keywords: knowledge business model; conventional accounting model; knowledge accounting model; knowledge assets; technology adoption; value chain management; ICT; information technology; communications technology; culture; socio-technical aspects.

DOI: 10.1504/IJVCM.2010.031806

International Journal of Value Chain Management, 2010 Vol.4 No.1/2, pp.142 - 152

Published online: 24 Feb 2010 *

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