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Appraising the Role of Strategic Control in Financial Performance: The Mediating Effect of the Resource Allocation Process—The Case of the Ministry of Finance–North Lebanon

Author

Listed:
  • Basma Bchennaty

    (Faculty of Business Studies, Arab Open University (AOU), P.O. Box 84901, Riyadh 11681, Saudi Arabia)

  • Muhammad Nauman Khan

    (Faculty of Business Studies, Arab Open University (AOU), P.O. Box 84901, Riyadh 11681, Saudi Arabia)

  • Mazen Massoud

    (Faculty of Business Administration, Jinan University (JU), Zaytoun Abi-Samra, P.O. Box 810, Tripoli 1300, Lebanon)

  • Tamima Elhassan

    (Faculty of Business Administration, Jinan University (JU), Zaytoun Abi-Samra, P.O. Box 810, Tripoli 1300, Lebanon)

Abstract

This paper aims to appraise the influence of strategic control tactics on financial performance. The goal is to examine the mediating effect of the resource allocation process on the relationship between financial performance and five strategic control tactics. A quantitative hypothetico-deductive methodology was used in this study. A basic random sample of the Ministry of Finance–North Lebanon’s workforce was used to conduct an electronic questionnaire. A total of 232 valid responses were collected. Two statistical analysis methods, an exploratory and a confirmatory factor analysis, were implemented. The sample adequacy was confirmed by a KMO value higher than 0.7 before instigating the principal component analysis (PCA). The latter kept more than 60% of the initial data while structuring the data. The findings of the KMO and Barlett tests supported the adoption of PCA. The correlation matrix confirmed a statistically significant relationship between resource allocation, financial success, and strategic control techniques. The structural equation model (SEM) validated the linear correlations and statistical significance between the variables. The hypotheses were examined. Results confirmed that the model satisfactorily fits the data. The RMSEA is below the 0.05 threshold. The incremental indices are higher than 0.9. Results confirmed that the resource allocation process mediates the relationship between preventive control, operational control, special alert control, implementation control, and financial performance.

Suggested Citation

  • Basma Bchennaty & Muhammad Nauman Khan & Mazen Massoud & Tamima Elhassan, 2024. "Appraising the Role of Strategic Control in Financial Performance: The Mediating Effect of the Resource Allocation Process—The Case of the Ministry of Finance–North Lebanon," IJFS, MDPI, vol. 12(3), pages 1-31, September.
    • Handle: RePEc:gam:jijfss:v:12:y:2024:i:3:p:90-:d:1474661
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    References listed on IDEAS

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    1. repec:eme:jaar00:jaar-11-2016-0109 is not listed on IDEAS
    2. Globocnik, Dietfried & Faullant, Rita & Parastuty, Zulaicha, 2020. "Bridging strategic planning and business model management – A formal control framework to manage business model portfolios and dynamics," European Management Journal, Elsevier, vol. 38(2), pages 231-243.
    3. Nathalie Bénet & Aude Deville & Gerald Naro, 2019. "BSC inside a strategic management control package," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 20(1), pages 120-132, May.
    4. Nathalie Bénet & Aude Deville & Gérald Naro, 2019. "BSC inside a strategic management control package," Post-Print hal-02281588, HAL.
    5. Erik Strauß & Christina Zecher, 2013. "Management control systems: a review," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(4), pages 233-268, February.
    Full references (including those not matched with items on IDEAS)

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