Performance measurement information system and competitive capabilities in relation towards organizational performance
The aim of this study is to examine the role of a Performance Measurement Information System (PMIS) in improvement of organisational performance via competitive capabilities. This study focuses on Performance Measurement System (PMS) design which is defined as an information system with dimensions o...
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| Format: | Thesis |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/37153/1/Performance%20measurement%20information%20system%20and%20competitive%20capabilities%20in%20relation%20towards%20organizational%20performance%20.pdf |
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| Summary: | The aim of this study is to examine the role of a Performance Measurement Information System (PMIS) in improvement of organisational performance via competitive capabilities. This study focuses on Performance Measurement System (PMS) design which is defined as an information system with dimensions of information characteristics, and from Strategic Management Accounting (SMA). Prior studies have examined the effects of Performance Measurement Systems (PMSs) by looking into the measures of structure and design of a PMS or the usage of a PMS. However, there is a scarcity of empirical evidence regarding the effects of a PMS on organisational performance. This study extends the previous research by examining the impact of a PMIS on organisational performance through the support of competitive capabilities. The conceptual model of this study is based on Chenhall's (2003) study suggesting an appropriate design of PMIS supports business strategies, taking into consideration factors such as the external environment, technology, organisational structure, and size of the company, and Otley’s (1980) contingency theory framework highlighting three variables known as environmental, organisational characteristics and competitive capabilities. This study investigates the mediating effect of competitive capabilities in the relationship between a PMIS and organisational performance. The main research question addressed by this study is whether a PMIS enhances organisational performance directly and indirectly through the support of the competitive capabilities.A total of 651 questionnaires were sent to companies listed in the Federation of Malaysian Manufacturing Directory (FMM, 2011). The number of usable questionnaires was 118 responses, yielding an 18 % response rate. Based on multiple regression analysis, the results indicate that a PMIS is positively related to competitive capabilities. The results also reveal that the relationship between a PMIS and organisational performance is direct and indirect through its ability to enhance competitive capabilities. The findings contribute to the body of the knowledge by identifying the important role of PMIS from an information system and an information characteristic's perspective underlying the contingency theory. Overall, this study demonstrated the importance of a PMIS as an information system which can be used to enhance competitive capabilities and organisational performance. |
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