scholarly journals The impact of contingency fit on organisational performance: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdallah Amhalhal ◽  
John Anchor ◽  
Nicoleta S. Tipi ◽  
Sara Elgazzar
Keyword(s):  
Information Technology ◽  
Performance Measurement ◽  
Performance Measures ◽  
Business Strategy ◽  
Contingency Theory ◽  
Emerging Market ◽  
Performance Measurement System ◽  
Organisational Performance ◽  
Content Type ◽  
The Relationship

PurposeThe research investigates the effectiveness of the performance measurement alignment approach which claims that measurement diversity (multiple performance measures) should be aligned with organisational contingencies to enhance organisational performance.Design/methodology/approachThe theoretical framework is contingency theory. The study is an empirical investigation of the indirect relationship between three contextual factors (business strategy, information technology and organisation size) and organisational performance via multiple performance measures. The results are derived from cross-sectional questionnaire survey data from 132 Libyan companies (response rate of 61%). For data analysis, the research uses mediation regression analysis via Preacher and Hayes' (2004) macro.FindingsThere is a significant indirect effect of business strategy and information technology, but not organisation size, on organisational performance. The measurement diversity approach plays a core mediating role in the relationship between the contingencies and organisational performance.Practical implicationsThe study helps to provide a better understanding of the usefulness of the fit/match between contingencies and Multiple Performance Measures in improving organisational performance.Originality/valueThe empirical evidence supports the central proposition of contingency theory that there is no universally appropriate performance measurement system which applies equally to all organisations in all circumstances. It also provides evidence relating to non–manufacturing and an emerging market context. This research significantly extends the relevant literature by highlighting the relationship between information technology, multiple performance measures and organisational performance. This study is the first to use Preacher and Hayes' (2004) macro to analyse mediation design in the field of contingency-based performance measurement.

scholarly journals Organisational performance and the use of multiple performance measures in an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdallah Amhalhal ◽  
John Anchor ◽  
Marina Papalexi ◽  
Shabbir Dastgir
Keyword(s):  
Emerging Markets ◽  
Financial Performance ◽  
Performance Measures ◽  
Emerging Market ◽  
Manufacturing Companies ◽  
Organisational Performance ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Performance Measures ◽  
The Relationship

PurposeThis study is an empirical investigation of the relationship between the use of 41 multiple performance measures (MPMs), including financial performance measures (FPM), non-financial performance measures (NFPMs) and organisational performance (OP) in Libya.Design/methodology/approachThe results are based on cross-sectional questionnaire survey data from 132 Libyan companies (response rate 61%), which were obtained just before the so-called Arab Spring.FindingsMPMs are used by both manufacturing and non-manufacturing companies. Libyan business organisations are more likely to use FPMs than NFPMs. However, these companies still rely more heavily on FPMs. The relationships between the use of NFPMs and OP and the use of MPMs and OP are positive and highly significant. The relationship between the use of FPMs and OP is positive but not significant.Research limitations/implicationsThe high power distance associated with the conservative, Libyan, Arab context will reinforce the tendency to use FPMs more than NFPMs. This may provide a performance advantage to those organisations which do adopt NFPMs.Practical implicationsAlthough there may be institutional barriers to the use of NFPMs in Libya, and other emerging markets, these are not insuperable and there is a payoff to their use.Originality/valueNo previous studies of emerging markets, such as the Middle East or North Africa, have looked at the relationship between OP and the adoption of such a large array of MPMs.

The significant of business strategy in improving organizational performance

Humanomics ◽  
2017 ◽  
Vol 33 (1) ◽  
pp. 56-74 ◽  
Author(s):  
Yuliansyah Yuliansyah ◽  
Bruce Gurd ◽  
Nafsiah Mohamed
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Financial Institutions ◽  
Business Strategy ◽  
Mediating Effect ◽  
Superior Performance ◽  
Business Strategies ◽  
Organisational Performance ◽  
Content Type ◽  
The Relationship

Purpose This research aims to investigate the extent to which business strategy mediates the relationship between reliance on integrative strategic performance measurement (RISPM) and organisational performance. Design/methodology/approach A self-administered survey of 157 managers in Indonesian financial institutions was used to test direct and indirect effects among the hypothesised variables. Findings The findings indicate that business strategy has a full mediating effect on the relationship between RISPM and organisational performance. Originality/value This study indicates that performance measurement systems should be designed in conjunction with business strategies to obtain superior performance. More specifically, in the Indonesian financial institutions, applying a differentiation strategy is found to be most effective in gaining competitive advantage and superior performance.

Managing strategic uncertainty

2016 ◽  
Vol 31 (4/5) ◽  
pp. 512-534 ◽  
Author(s):  
Mandy M. Cheng ◽  
Kerry A. Humphreys
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Business Strategy ◽  
Business Environment ◽  
Performance Measurement System ◽  
Governance Mechanism ◽  
Strategic Uncertainty ◽  
Strategic Control ◽  
Content Type ◽  
Strategic Performance

Purpose Strategic uncertainty from emerging threats and opportunities in the business environment can significantly impact managers’ abilities to successfully implement their business strategy. A key strategic control and governance mechanism designed to enable managers to respond to strategic uncertainty is a strategic performance measurement system, such as the balanced scorecard (BSC). This study aims to investigate whether strategic uncertainty is associated with the diversity and types of performance measures in a BSC, which are used by managers for various strategic control and governance purposes. Design/methodology/approach A survey of senior-level managers within strategic business units of Australian Stock Exchange listed organizations was conducted. Findings This study finds that the extent to which managers face strategic uncertainty is positively associated with performance measurement diversity. Further, managers faced with greater strategic uncertainty use performance measures relatively more to evaluate subordinates’ performance, communicate business strategy, track performance against targets, identify problem areas and guide future directions. Outcome measures are used to a greater extent for all five purposes, whereas leading measures are used more only for future-oriented purposes. Practical implications Strategic performance measurement systems, such as the BSC, can and are being used to provide managers with the information and control mechanisms necessary to meet the challenges associated with strategic uncertainty. Originality/value This study provides the first evidence on the relations between strategic uncertainty, performance measurement diversity and managers’ use of performance measures for five key purposes. Understanding these relations is important, as managers need to formulate appropriate responses to strategic uncertainty, to protect and create value by exploiting emerging opportunities and managing associated threats.

Linking green business strategy with financial performance

2019 ◽  
Vol 35 (11) ◽  
pp. 30-32
Keyword(s):  
Financial Performance ◽  
Business Strategy ◽  
Emerging Market ◽  
International Markets ◽  
Content Type ◽  
Cost Leadership ◽  
Leadership Process ◽  
Green Business ◽  
Pertinent Information ◽  
The Relationship

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on unpacking the relationship between green business strategy and export financial performance in emerging market manufacturing firms, specifically in Turkey. Overall, the pursuit of a green business strategy did increase the financial performance of the surveyed emerging market firms. This was achieved by combining green product differentiation with a committed cost leadership process, as a way of mitigating the additional expense associated with designing green products that appeal to consumers in international markets. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Performance measurement systems in auditing firms

2015 ◽  
Vol 5 (4) ◽  
pp. 395-423 ◽  
Author(s):  
Mohamed Hegazy ◽  
Myada Tawfik
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Performance Measurement System ◽  
Future Research ◽  
High Quality ◽  
Content Type ◽  
Financial Measures ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate challenges facing auditing firms in designing and measuring their performance and discusses why and how the balance scorecard (BSC) could support the auditing firms overcome such challenges. The paper contributes to the existing literature by identifying the peculiarity of the auditing firms in designing and implementing performance measurement systems including the need for sound and advanced information systems, subjectivity embedded in measuring customer satisfaction, growth and success of the firms and restrictions imposed by regulations and auditing standards for the provision of non-audit services which may increase the firms’ revenues and profits to help maintain high-quality outputs. Also, the paper provided evidence for the use of non-financial measures in service industry in particular for customers and finance. The unique dilemma in the auditing firms to provide services to satisfy customers yet maintaining distance and independence from them represent an important research question requiring investigation and study. Design/methodology/approach – A review of the literature for performance evaluation in general and in particular BSCs in service industries was made to identify challenges facing auditing firms when measuring their performance. Data were collected using case study approach; two auditing firms, one of the Big 4 and a medium size auditing firm with international affiliation operating in the Egyptian market were selected. Interviews, document analysis and participant observations were used in the analysis of each firm performance measurement system. Findings – The paper suggests that major challenges face auditing firms in measuring their performance mainly the size of the firm and its affiliation with international auditing firm, the qualification and experience of partners and audit managers needed for the design and implementation of a BSC or similar performance measures, the resources required for the introduction of such performance measure and the peculiarity of the auditor and client relationship with the need to maintain independence and confidentiality while providing high-quality services. Although both auditing firms being studied have formal performance measurement systems, they differ in their degree of comprehensiveness. In particular, the performance measurement system of the larger firm is more elaborate than that of the smaller one and both place more emphasis on qualitative measures such as learning and growth and internal business processes than financial measures. Research limitations/implications – Overall, the results have implications for understanding the performance measurement process of auditing firms in general and in particular in an emerging economy such as Egypt. The identification of the challenges facing auditing firms in measuring their performance and how the implementation of BSC can help partners and employees to overcome those challenges will add to the literature for performance evaluation in service companies. Future research should be carried to compare and assess differences between the behavioural aspects of performance measures in auditing firms and possible application of BSC in such firms and those used in services industry. Also, the practicality of implementing a BSC measures for different auditing firms should be investigated further in future research. Originality/value – The research among the first to investigate the challenges facing auditing firms in designing and operating a performance measurement system and to discuss, using case studies, how a BSC could support the auditing firms to overcome such challenges. Further, the research provides insights into performance measures in auditing firms in developing economies like Egypt which are sparse since most studies have been conducted in developed economies. Also, the paper enriches the literature of performance measurement systems in service rather than the manufacturing sector especially for medium and small size firms.

Influence of institutional pressures on performance measurement systems

2016 ◽  
Vol 12 (2) ◽  
pp. 106-128 ◽  
Author(s):  
Rahat Munir ◽  
Kevin Baird
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Financial Institutions ◽  
Performance Measurement System ◽  
Institutional Pressures ◽  
Content Type ◽  
Normative Pressure ◽  
Banking Regulations ◽  
Corporate Change ◽  
Coercive Pressure

Purpose Grounded in DiMaggio and Powell’s (1983) institutional isomorphism perspective of institutional theory, the purpose of this study is to examine the influence of institutional pressures on the performance measurement system (PMS) within banks and financial institutions. Design/methodology/approach A survey was used to collect data from 71 banks and financial institutions operating in Australia. Findings Four institutional pressures, the normative pressure “corporate change” and the coercive pressures “economic and financial legislation”, “socio-economic political pressures” and “banking regulations” were found to be associated with the use of multi-dimensional performance measures. In addition, the coercive pressure “economic and financial legislation” and the normative pressure “corporate change” were associated with the use of financial, internal and learning and growth performance measures. Finally, the use of internal and learning and growth measures was positively associated with the coercive force “socioeconomic-political pressures”, and the use of financial measures was associated with the coercive pressure “banking regulations”. Research limitations/implications Given the recent global financial crisis, the study offers a reference within the contemporary performance measurement literature in relation to the influence of institutional pressures on the PMS within banks and financial institutions. Originality/value While prior research has focused on manufacturing organisations, this study deepens our understanding of the institutional environment of banks and financial institutions and how specific coercive, mimetic and normative forces influence the PMS.

DISCUSSION OF: Testing Strategy with Multiple Performance Measures: Evidence from a Balanced Scorecard at Store24

2015 ◽  
Vol 27 (2) ◽  
pp. 67-73 ◽  
Author(s):  
Clara Xiaoling Chen
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Business Models ◽  
Performance Measurement System ◽  
Future Research ◽  
The Balanced Scorecard ◽  
Performance Measurement Systems ◽  
Using Data

ABSTRACT The Campbell, Datar, Kulp, and Narayanan (2015; hereafter, CDKN) study empirically investigates how the quality of a firm's business strategy can be tested and validated using statistical analysis of the firm's internal performance measurement system. Using data from the balanced scorecard of a convenience store chain, their study provides empirical evidence that the company's internal performance measures reveal timely information about problems with the strategy and can help identify where and why the strategy failed. In this brief discussion of the study, I first summarize the major strengths of their study, then discuss my concerns and comments, and finally point out some potential extensions. In summary, CDKN's study is important in that it makes significant contributions to several streams of literature. CDKN have inspired follow-up studies on the use of performance measurement systems to evaluate strategy and the testing of business models, and has opened up exciting opportunities for future research.

scholarly journals Effects of ownership concentration on firm performance: Pakistani evidence

2015 ◽  
Vol 9 (2) ◽  
pp. 162-176 ◽  
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al Mamun
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Stock Exchange ◽  
Emerging Market ◽  
Positive Association ◽  
Ownership Concentration ◽  
Content Type ◽  
Concentrated Ownership ◽  
Concentration Degree ◽  
The Relationship

Purpose – This paper aims to present an analysis of the association between five categories of concentrated ownership and firm performance in Pakistan. The connection between high ownership concentration and firm performance has attracted much attention, especially in emerging market, yet yielded many inconsistent empirical results. Design/methodology/approach – Karachi Stock Exchange (KSE)-100 Indexed companies listed in KSE from 2007 to 2011 were selected as the sample, and correlation coefficient and regression model were used to inspect the relationship between ownership concentration degree and corporate performance. Findings – It was found that there is no significant association with ownership concentration and accounting-based performance, market-based performance measures and economic profit, in general. Originality/value – The first demonstration that the shareholding proportion of the single largest shareholder is the only variable having positive association with market-based performance measures.

scholarly journals The relationship regulator: a buyer-supplier collaborative performance measurement system

2018 ◽  
Vol 38 (11) ◽  
pp. 2022-2039 ◽  
Author(s):  
Vieri Maestrini ◽  
Veronica Martinez ◽  
Andy Neely ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
...  
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Performance Measurement System ◽  
Adoption Process ◽  
Content Type ◽  
Measurement Framework ◽  
Relationship Performance ◽  
The Relationship

Purpose The purpose of this paper is to propose an innovative buyer-supplier performance measurement system (PMS) (called relationship regulator – RelReg), aimed at stimulating collaboration on mutual performance. The RelReg is described all throughout the phases of its lifecycle: first, design features and visual representation of the new measurement framework are reported; second, guidelines on how to implement, use and review the system are provided, highlighting the role of the buyer and the supplier at each step. Design/methodology/approach A theory building and testing approach is applied. The RelReg developed features primarily ground on previous scientific contributions matched with empirical evidence collected through case studies, workshops and focus groups. The resulting conceptual model is then validated through a dyadic buyer-supplier case study. Findings Two conceptual frameworks are provided: the RelReg dashboard – a multidimensional PMS; and the RelReg lifecycle – set of activities to be performed by both the buyer and the supplier all along the adoption process. Moreover, empirical insights on relevant issues to be considered when adopting the RelReg are reported. Originality/value The RelReg represents an innovative and smart tool, allowing buyer-supplier dyads to collaborate on relationship performance.

Performance measurement system for a lean manufacturing setting

2019 ◽  
Vol 23 (3) ◽  
pp. 240-252 ◽  
Author(s):  
Samudi Perera ◽  
Chandana Perera
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Lean Manufacturing ◽  
Performance Measurement System ◽  
Structured Interviews ◽  
Content Type ◽  
Lean Practices ◽  
Manufacturing Performance ◽  
Key Performance Measures

Purpose The purpose of this paper is to propose a performance measurement system for a lean manufacturing environment, which assesses the multi-dimensional performance of lean manufacturing. Design/methodology/approach Following a case study approach, structured interviews were conducted to identify the parameters to measure the performance of a lean manufacturing apparel company. A model was developed with the analytical hierarchical process to assess the performance. Findings The proposed model consists of three levels: first level (overall manufacturing performance), second level (criteria that represent the stakeholders’ view of manufacturing performance) and third level (sub-criteria for the criteria which represent the areas affected by lean manufacturing). The model connects indicators that measure manufacturing performance with the areas required improvements, according to their relative importance to stakeholders. Research limitations/implications The interviewers’ perspectives were used to determine the importance of each manufacturing area for stakeholders. Key performance measures can vary from company to company. Practical implications Managers can use this model to identify important areas for manufacturing performance and the performance improvements driven by different types of lean practices. The results revealed that identifying stakeholders’ requirements was an important aspect of evaluating manufacturing performance. Social implications The model embeds a stakeholder approach in performance measurement, thereby providing a comprehensive model to assess performance. Originality/value This study applies the stakeholder view to identify the multi-dimensional nature of performance in a lean manufacturing setting. It also defines the key performance measures using lean practices.

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