IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v10y2019i3p380-391.html
   My bibliography  Save this article

Relative Comprehensiveness of Performance Measurement System: Organisational Ownership Structure and Size

Author

Listed:
  • Zarinah Abdul Rasit
  • Che Ruhana Isa

Abstract

Change in the business environment has resulted in significant implication in the use of Management Control System (MCS) particularly Performance Measurement System (PMS). Strategic Performance Measurement System (SPMS) has been widely used by organisation to monitor the implementation, achievement and improvement of its plan objectives. Considerable prior research identified inconsistent findings in the relationship between PMS and organisational performance. In view of the fact that organisational culture would significantly being influenced by ownership structure, this research will further explore the comprehensiveness of PMS, the extent to which the systems provide information and integration with strategy and value chain, with different ownership structure. Data were gathered in two (2) phases; firstly, using the survey data administered to the 120 strategic business unit (SBU) managers of the manufacturing companies, members of the Federation of Malaysian Manufacturers (FMM). The second phase involves conducting semi-structured interviews with SBU managers of the 10 companies with foreign and local ownership structure. Findings from the research identified that more comprehensive PMS is being implemented by foreign owned companies rather than local own companies. The size of the companies may also influence the PMS comprehensiveness. The PMS implementation was also found to be influenced by the parent companies. Adequate information technology (IT) plays an important role for effective use of the PMS, provide added supports for performance assessment, communication and exchange of information within the organisation and inter-organisations worldwide. Findings provide significant insights into the organisational factors influence the PMS design.

Suggested Citation

  • Zarinah Abdul Rasit & Che Ruhana Isa, 2019. "Relative Comprehensiveness of Performance Measurement System: Organisational Ownership Structure and Size," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 380-391, May.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:3:p:380-391
    DOI: 10.5430/ijfr.v10n3p380
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/15535/9640
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/15535
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v10n3p380?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Irfan MARANGOZ, 2018. "The Determination of the Relationship between Somatotypes and Speed of Sub-Elite Athletes," Asian Journal of Education and Training, Asian Online Journal Publishing Group, vol. 4(3), pages 220-223.
    2. Abdussalam Mikail & Zinatul Ashiqin Zainol, 2018. "Conservation of Biodiversity in Sub Sahara Africa: Prospecting for Genetic Resources and Traditional Knowledge Regulation in Ethiopia," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 8(8), pages 560-568.
    3. Abdussalam Mikail & Zinatul Ashiqin Zainol, 2018. "Conservation of Biodiversity in Sub Sahara Africa: Prospecting for Genetic Resources and Traditional Knowledge Regulation in Ethiopia," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 8(8), pages 560-568, August.
    4. Michael Toyi Mokgari & O Pwaka, 2018. "An Evaluation of Effectiveness of Oversight Committees: A Case of City of Johannesburg, Section 79 Committees," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 5(2), pages 48-67.
    5. ALIU Momodu Mohammed & Okpanachi Joshua & Mohammed Nma Ahmed, 2018. "Audit Fees and Audit Quality: A Study of Listed Companies in the Downstream Sector of Nigerian Petroleum Industry," Humanities and Social Sciences Letters, Conscientia Beam, vol. 6(2), pages 59-73.
    6. Chenhall, Robert H., 2003. "Management control systems design within its organizational context: findings from contingency-based research and directions for the future," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 127-168.
    7. ALIU Momodu Mohammed & Okpanachi Joshua & Mohammed Nma Ahmed, 2018. "Audit Fees and Audit Quality: A Study of Listed Companies in the Downstream Sector of Nigerian Petroleum Industry," Humanities and Social Sciences Letters, Conscientia Beam, vol. 6(2), pages 59-73.
    8. Irfan MARANGOZ & Sevde Mavi VAR, 2018. "The Relationship among Somatotype Structures, Body Compositions and Estimated Oxygen Capacities of Elite Male Handball Players," Asian Journal of Education and Training, Asian Online Journal Publishing Group, vol. 4(3), pages 216-219.
    9. Mandy M. Cheng & Peter F. Luckett & Habib Mahama, 2007. "Effect of perceived conflict among multiple performance goals and goal difficulty on task performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(2), pages 221-242, June.
    10. İrfan MARANGOZ, 2018. "The Determination of the Relationship between Somatotypes and Speed of Sub-Elite Athletes," Asian Journal of Education and Training, Asian Online Journal Publishing Group, vol. 4(3), pages 220-223.
    11. İrfan MARANGOZ & Sevde Mavi VAR, 2018. "The Relationship among Somatotype Structures, Body Compositions and Estimated Oxygen Capacities of Elite Male Handball Players," Asian Journal of Education and Training, Asian Online Journal Publishing Group, vol. 4(3), pages 216-219.
    12. Michael Toyi Mokgari & O Pwaka, 2018. "An Evaluation of Effectiveness of Oversight Committees: A Case of City of Johannesburg, Section 79 Committees," International Journal of Public Policy and Administration Research, Conscientia Beam, vol. 5(2), pages 48-67.
    13. Otley, David T., 1980. "The contingency theory of management accounting: Achievement and prognosis," Accounting, Organizations and Society, Elsevier, vol. 5(4), pages 413-428, October.
    14. Chenhall, Robert H., 2005. "Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 395-422, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laura Broccardo & Simona Alfiero & Francesca Culasso, 2024. "Enhancing Performance Management Systems in a challenging environment," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2024(1), pages 5-14.
    2. Andrea Cardoni & Filippo Zanin & Giulio Corazza & Alessio Paradisi, 2020. "Knowledge Management and Performance Measurement Systems for SMEs’ Economic Sustainability," Sustainability, MDPI, vol. 12(7), pages 1-27, March.
    3. Ellen Haustein & Robert Luther & Peter Schuster, 2014. "Management control systems in innovation companies: a literature based framework," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(4), pages 343-382, February.
    4. Bedford, David S. & Malmi, Teemu & Sandelin, Mikko, 2016. "Management control effectiveness and strategy: An empirical analysis of packages and systems," Accounting, Organizations and Society, Elsevier, vol. 51(C), pages 12-28.
    5. Amizawati Mohd Amir, 2011. "The indirect effects of PMS design on Malaysian service firms' characteristics and performance," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(1), pages 31-49, May.
    6. Cadez, Simon & Guilding, Chris, 2008. "An exploratory investigation of an integrated contingency model of strategic management accounting," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 836-863.
    7. Ulf Diefenbach & Andreas Wald & Ronald Gleich, 2018. "Between cost and benefit: investigating effects of cost management control systems on cost efficiency and organisational performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(1), pages 63-89, March.
    8. Francesca Francioli & Alberto Quagli, 2021. "Management accounting change and the rise of Vespa (1884-1965)," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 2), pages 313-338.
    9. Hall, Matthew, 2010. "Accounting information and managerial work," LSE Research Online Documents on Economics 28539, London School of Economics and Political Science, LSE Library.
    10. Cäker, Mikael & Siverbo, Sven, 2018. "Effects of performance measurement system inconsistency on managers’ role clarity and well-being," Scandinavian Journal of Management, Elsevier, vol. 34(3), pages 256-266.
    11. Widener, Sally K., 2004. "An empirical investigation of the relation between the use of strategic human capital and the design of the management control system," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 377-399.
    12. Thi Cam Tu Luong & Ann Jorissen & Ine Paeleman, 2019. "Performance Measurement for Sustainability: Does Firm Ownership Matter," Sustainability, MDPI, vol. 11(16), pages 1-35, August.
    13. Soufiane Kherrazi & Karim Saïd, 2022. "Managerial Practices Within Multilateral And Public-Funded R&D Collaborations," Post-Print hal-04205187, HAL.
    14. Shih-Chu Chou & Ramachandran Natarajan & Kenneth Zheng, 2022. "Conglomerate internal informational advantage and resource allocation efficiency," Review of Quantitative Finance and Accounting, Springer, vol. 59(2), pages 717-748, August.
    15. Hofmann, Thorsten, 2011. "Balanced Scorecard: Theoretische Konzeption und Anwendung in der Praxis," Research Papers on Marketing Strategy 4/2011, Julius-Maximilians-Universität Würzburg, Lehrstuhl für BWL und Marketing.
    16. Jafar Ojra & Abdullah Promise Opute & Mohammad Mobarak Alsolmi, 2021. "Strategic management accounting and performance implications: a literature review and research agenda," Future Business Journal, Springer, vol. 7(1), pages 1-17, December.
    17. Hall, Matthew, 2008. "The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance," Accounting, Organizations and Society, Elsevier, vol. 33(2-3), pages 141-163.
    18. Hunt, Chris & Bui, Binh & Fowler, Carolyn, 2008. "A Risk-focused Performance Management System Framework for Planning Change in Organisations: New Zealand 'Gentailers' and the ETS," Working Paper Series 4013, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    19. Chris Hunt & Dunstan, Keitha, 2008. "Why do Queensland Urban Water Entities Resist the Adoption of User Pays Pricing?," Working Paper Series 3999, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    20. Smith, Steven D. & Thomas, Tyler F., 2024. "The effects of strategic alignment and strategic clarity on multidimensional task performance," Accounting, Organizations and Society, Elsevier, vol. 112(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:ijfr11:v:10:y:2019:i:3:p:380-391. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.