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Exploring the Relationships between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance

Author

Listed:
  • Eker, Melek

    (Uludag University)

  • Eker, Semih

    (Uludag University)

Abstract

The subject of this study is the effects of three way interaction between environmental uncertainty, business strategy and management control system on firm performance. The data from 94 Turkish manufacturing company of 500 top class company is analyzed with the SPSS. The results of multiple regression analysis indicate that higher differentiation strategy, management control system, the three-way interaction between environmental uncertainty, differentiation strategy and management control system and the three-way interaction between environmental uncertainty, differentiation strategy and interactive control system lead to higher firm performance. According to the results of t-test, the firms with high performance tend to use differentiation strategy, management control system, three-way interaction between environmental uncertainty, differentiation strategy and management control system, three-way interaction between environmental uncertainty, cost leadership strategy and management control system, three-way interaction between environmental uncertainty, differentiation strategy and interactive control system, three-way interaction between environmental uncertainty, cost leadership strategy and diagnostic control system more than ones with low performance.

Suggested Citation

  • Eker, Melek & Eker, Semih, 2019. "Exploring the Relationships between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 10(1), pages 115-129, January.
    • Handle: RePEc:ris:buecrj:0380
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    Citations

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    Cited by:

    1. MF. Arrozi Adhikara & Maslichah & Nur Diana & M. Basjir, 2022. "Organizational Performance in Environmental Uncertainty on the Indonesian Healthcare Industry: A Path Analysis," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, March.
    2. Amit Kundu & Dev Narayan Sarkar & Arabinda Bhattacharya, 2021. "The effect of uncertainty on the formulation of strategies: a study of selected Indian organizations," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.
    3. Saniye YILDIRIM OZMUTLU & Esin CAN, 2022. "Strategy Under Uncertainty: A Sectoral Analysis of Strategic Posture and Performance in the Turkish Logistics Sector," Yildiz Social Science Review, Yildiz Technical University, vol. 8(1), pages 13-29.

    More about this item

    Keywords

    Environmental Uncertainty; Business Strategy; Management Control Systems; Financial Performance; Non-Financial Performance;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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