Strategic performance measurement system,firm capabilities andcustomer-focused strategy

2019 ◽  
Vol 31 (2) ◽  
pp. 288-307 ◽  
Author(s):  
Yuliansyah Yuliansyah ◽  
Ashfaq Ahmad Khan ◽  
Arief Fadhilah
Keyword(s):  
Developing Countries ◽  
Organizational Learning ◽  
Performance Measurement ◽  
Measurement System ◽  
Financial Services ◽  
Performance Measurement System ◽  
Content Type ◽  
Strategic Performance ◽  
Services Sector ◽  
Financial Services Sector

Purpose The impact of a firm’s strategic performance measurement system (SPMS) on its customer-focused strategy, under varying contexts, has largely been documented in the literature. However, the system’s capacity to positively influence the firm strategy through its impact on the firm’s peculiar internal and external capabilities, in the peculiar context of the developing countries’ financial services sector, has so far skipped a thorough academic enquiry. This study, using Indonesia’ financial services sector as its ‘site’, aims to fill this void in the literature. Design/methodology/approach The authors gleaned the study’s empirical data from financial services sector firms using survey questionnaire and analyzed it using SmartPLS. A total of 107 valid responses from management members of different financial services sector firms in Indonesia were deemed useable. Findings The study findings support the paper’s main thesis. The findings revealed that the strategic PMS contributes to enhancing firms’ market orientation and robustness by positively contributing to their customer-focused strategy from three distinct dimensions – competitors, customers and organizational learning. Research limitations/implications The authors posit that an effective customer-focused strategy can be accomplished by purposefully adapting the focus of the firm’s strategic PMS to positively influence the organizational learning, which subsequently translates into the firm’s high competitiveness in the marketplace. Originality/value The unexplored link between the SPMS, firm’s internal and external capabilities and customer-focused strategy in the particular context of a developing country’s financial services sector will not only fill the current void in the literature but also instigate a new academic debate. The study will also contribute to the management accounting practice in service firms in the developing countries context.

Association between performance measurement systems and organisational effectiveness

2014 ◽  
Vol 34 (7) ◽  
pp. 853-875 ◽  
Author(s):  
Bedanand Upadhaya ◽  
Rahat Munir ◽  
Yvette Blount
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Financial Services ◽  
Content Type ◽  
Services Sector ◽  
Measurement Systems ◽  
Organisational Effectiveness ◽  
Financial Services Sector ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate the role of performance measurement systems in organisational effectiveness in the context of the financial services sector within a developing country. Design/methodology/approach – Using the mail survey method data were collected from 69 financial institutions operating in Nepal. Multivariate analysis, in particular multiple regression analysis was employed to test the hypotheses. Findings – The results suggest that non-financial measures and feedback are tightly intertwined with organisational effectiveness. While institutions are focused on using the performance measures concerning internal business process perspective, less emphasis is placed on using customer and employee-related performance measures because they are considered less significant to organisational effectiveness. The findings also reveal that strategy-related feedback is considered more critical by management, as opposed to performance and staff. The study also provides evidence that 40.58 per cent of the financial institutions in Nepal had implemented the Balanced Scorecard, which is considered to be high when compared with other developing countries. Practical implications – The findings provide managers with valuable insights pertaining to the role of non-financial performance measures and the importance of feedback in improving organisational effectiveness, which could assist them in (re) aligning their performance measurement practices. Originality/value – The findings of this study contributes to the limited management accounting literature on performance measurement and the impact on organisational effectiveness by providing evidence from the financial services sector within the context of a developing country.

The “interactive” performance measurement system and team performance – Towards optimal organizational utility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuliansyah Yuliansyah ◽  
Ashfaq Ahmad Khan ◽  
Wijaya Triwacananingrum
Keyword(s):  
Organizational Learning ◽  
Performance Measurement ◽  
Knowledge Sharing ◽  
Team Performance ◽  
Measurement System ◽  
Theory And Practice ◽  
Statistical Analyses ◽  
Mediating Effect ◽  
Performance Measurement System ◽  
Content Type

PurposeThis study aims to highlight the significance of Performance Measurement System (PMS) as an “interactive” system that adapts to the organization's peculiar operational setup, thereby delivering optimal employee performance management benefits. Using Schatzki's (2002) “site of the social” theoretical conceptualization, it aims to empirically investigate the influence PMS's such strategic adaptation could have on employees' team performance through its mediating effect on improving organizational learning and knowledge sharing.Design/methodology/approachIn pursuit of the set objective, we conducted a survey of 200 employees in public accounting firms located in the two major Indonesian cities of Jakarta and Surabaya. The survey yielded 89 responses of which 87 were deemed fit for empirical analyses. The statistical analyses of the data were performed using SmartPLS.FindingsThe statistical analyses using SmartPLS found evidence that the strategic use of the PMS positively influences team performance, both directly and indirectly, through its role in enhancing organizational learning; however, its role in enhancing knowledge sharing did not demonstrate leveraging team performance.Research limitations/implicationsThe study conclusions are based on a relatively small data sample and the context of a developing economy, and, hence, need to be replicated with caution.Originality/valueThe study contributes to the management accounting theory and practice and emphasizes the strategic use of PMS to help improve organizational performance. Its novel “site” and context directs researchers' and practitioners' attention to the “interactive”, rather than passive and standalone, use of PMS to influence team performance and instigates a new debate on the management tool's optimal use.

Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vieri Maestrini ◽  
Andrea Stefano Patrucco ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
Paolo Maccarrone
Keyword(s):  
Performance Measurement ◽  
Performance Improvement ◽  
Measurement System ◽  
Structural Equation ◽  
Performance Measurement System ◽  
Content Type ◽  
Performance Improvements ◽  
Supplier Performance ◽  
Performance Measurement Systems ◽  
The Impact

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

The Impact of Strategic Performance Measurement System on Organizational Performance in Saudi Universities

2013 ◽  
Vol 1 (2) ◽  
pp. 64-71
Author(s):  
Naser Zouri ◽  
Zahra Abdolkarimi ◽  
Seyed A. Payambarpour
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Enterprise Resource Planning ◽  
Measurement System ◽  
Resource Planning ◽  
Planning System ◽  
Performance Measurement System ◽  
Strategic Performance ◽  
The Impact

Objective- The aim of the study is to enhance the mechanism of strategic performance measurement system goals base of four research questions: (i) to what association between the MCS and enterprise resource planning system (ERPS) intention to strategy performance management system (SPMS)? (ii) To what association between the performance management system (PMS) and ERPS intention to SPMS? (iii) To what relationship between the resource–based view/capabilities and ERPS intention to SPMS? (iv)To do comprehensiveness of organizational performance factors affected on ERPS intention to SPMS? Methodology/Technique A survey questionnaire was used to collect the data in Madinah, Reyaz, and Jeddah. Data was collected during the last section of 2013 of which 160 successful questionnaires were gathered for further analysis. Findings The result shows the impact of evaluation SPMS to solve the market place error and also ability of executives' level of management to solve the behaviours issue in business organization. Novelty - The significance of study contribute executive branch in Saudi universities for the safety of strategic performance measurement system implementation to be modified or changed, taking into account the financial metrics and non-financial when designing a control system. Type of Paper Empirical paper Keywords: , Strategic performance measurement system, Enterprise resource planning system, Strategic management category, Market place error.

Development of footprint framework of performance measurement system for SMMOs

2020 ◽  
Vol 17 (5) ◽  
pp. 727-756
Author(s):  
G.S. Dangayach ◽  
Gaurav Gaurav ◽  
Sumit Gupta
Keyword(s):  
Performance Measurement ◽  
Business Model ◽  
Measurement System ◽  
Ease Of Use ◽  
Performance Measurement System ◽  
Barriers To Adoption ◽  
Rapid Improvement ◽  
Research Attention ◽  
Content Type ◽  
Design And Implementation

PurposeThe performance measurement system (PMS), recognized as an important tool for rapid improvement, has found wide applications in the larger organizations and has received a lot of research attention in recent past. PMS adoption in SMEs is low even though SMEs have realized its importance and benefits and are now ready to embrace PMS as a tool for improvement. This paper proposes a novel framework, called the footprint framework, for design and implementation of PMS for SMEs. The proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS.Design/methodology/approachThe theoretical framework was conceptualized and its basis was tested for feasibility using an industry survey. The survey was analyzed using the statistical tools available in the SPSS 24.0 statistical analysis software, and the insights obtained from this analysis were used to shape the proposed framework. The framework was populated for small and medium manufacturing organizations (SMMOs) as a case study. Analytic hierarchy process was used to synthesize the data provided by the survey to build up the proposed framework and its components.FindingsThe footprint framework is a unique framework in the respect that it consists of a set of PMS suited to different company profiles that can be accessed quickly. Any SMMO that desires to determine its future PM requirements has simply to define its probable profile of the future in terms of size, business model and order winner and check the PMS appropriate to that profile from the footprint framework. Thus the SMMO can even prepare for its futuristic PM needs.Research limitations/implicationsThe proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS. The main advantages of the footprint framework are its simplicity, ease of use, immediate implementation and a built-in knowledge bank.Practical implicationsThis research has proposed a new PMS framework, an out of the box tool that makes it possible for the Indian SMMO to adopt PMS on an instant basis. The footprint framework combines the experience of several researchers and several practitioners to offer a ready-made starter kit that needs no other aid to implement a most appropriate PMS and leverage the industry PM best practices to build the performance measurement knowledge and expertise of the SMMO without going through a protracted learning or training process.Social implicationsThis research has made a novel proposal for a PMS framework by proposing the footprint framework – a PMS framework that is not only an instant, out of the box solution for the SMMOs but also incorporates the know-how to implement the performance measurement complete with information on what to measure, how to interpret and what should be done to improve.Originality/valueThe proposed framework is simple to understand and removes a key barrier of PMS adoption for SMMOs. The user SMMO needs to state its size, business model and order winner from the available options, build up its PMS code, select the matching PMS from the framework and the SMMO is ready to implement the PMS.

scholarly journals A performance measurement system for change initiatives

2019 ◽  
Vol 25 (7) ◽  
pp. 1647-1672
Author(s):  
Dag Naslund ◽  
Andreas Norrman
Keyword(s):  
Organizational Change ◽  
Performance Measurement ◽  
Measurement System ◽  
Major Change ◽  
Process Efficiency ◽  
Performance Measurement System ◽  
Change Initiative ◽  
Change Initiatives ◽  
Content Type ◽  
Practical Reality

Purpose The purpose of this paper is to develop, implement, test and further enhance a framework for measuring organizational change initiatives. Design/methodology/approach The conceptual part of the framework is based on the structured analysis of existing literature. The framework was further developed during an action research (AR) study where the authors developed, implemented, evaluated and improved the measurement system for organizational change initiatives. Findings The academic literature is rich in conceptual articles providing required characteristics of a “good” measurement system and frameworks for how organizations should measure performance. However, academia provides less empirical evidence of how these performance measurement systems can be implemented, evaluated and improved. In this paper, the authors present a study where the developed measurement system has been implemented, evaluated and improved. The results in terms of how the actual framework worked as well as the response from the case organizations are equally positive. Research limitations/implications The framework has been implemented in two different, major change initiatives in one case organization. While the results are truly encouraging, the framework needs to be further tested and refined in more organizations. Practical implications There is a gap between academic perception and practical reality regarding how organizations should measure performance in general as well as measuring organizational change initiatives. The presented, and empirically tested, framework measures both the results of the change initiative (effectiveness) the actual change process (efficiency) as well as the perception of the change initiative and process from different key stakeholders. Originality/value This is the first developed, implemented and further improved measurement system for organizational change which measures both the efficiency and effectiveness of the change initiative (process).

Enhancing brand value using corporate social responsibility initiatives

2020 ◽  
Vol 23 (4) ◽  
pp. 575-602
Author(s):  
Ahmed Suhail Ajina ◽  
Sanjit Roy ◽  
Bang Nguyen ◽  
Arnold Japutra ◽  
Ali Homaid Al-Hajla
Keyword(s):  
Saudi Arabia ◽  
Social Responsibility ◽  
Financial Services ◽  
Financial Service ◽  
Brand Value ◽  
Socially Responsible ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Corporate Social

Purpose This study aims to investigate employees’ perceptions of socially responsible financial services brands in Saudi Arabia. The study also identifies the motives and challenges for Islamic banks for higher involvement in social responsibility initiatives to enhance their brand values. Design/methodology/approach An inductive approach was used in this study to identify the motives and challenges related to corporate social responsibility (CSR) activities. The research design uses a qualitative approach where in-depth interviews were carried out among the employees in the financial services sector in Saudi Arabia. Findings Findings provide insights about how CSR initiatives for financial services brands in a developing and Islamic country are perceived. Results show that the focus of CSR activities is on the attribute of CSR, the magnitude of CSR and attitude towards CSR. Results show two main motives to engage in CSR activities, which are instrumental and ethical motives. The main challenges are related to the government, business, charitable organisations and customers and society. Practical implications Implications exist for how CSR is perceived in a new context and in the financial services industry. Understanding the current perception of CSR from a financial service brand perspective helps policymakers to develop appropriate platforms for financial service providers to become more socially involved. Originality/value The major contribution of this study lies in investigating the CSR perception among the key stakeholder (i.e. the employees) from a brand management perspective in the Saudi Arabian financial services sector. Further, this study shows the main motives and challenges, which local financial service brands face to become socially responsible. The categories of attributes, magnitude and attitudes can be used to enhance brand value in one of the economically advanced countries in the Arabic world, Saudi Arabia. In the first category “attribute”, the perception of socially responsible banks are highlighted, while the elements of CSR, including its dimensions, are emphasised in the second category “magnitude”. The third category “attitude” shows two themes, including stakeholders’ issues and business-related issues.

Sign in / Sign up

Export Citation Format

Share Document