Perception of Top Executives Towards the Relationship between Mission Statement Communication Variables and Firm Performance in Selected Public Listed Companies
This study was undertaken to examine the perceptions of top executives of the relationships between the mission statement communication variables and firm performance in Malaysian. Despite the immense popularity of the concept of mission statement in the communication and management literature, l...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2005
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/116/1/548989_FBMK_2005_19.pdf |
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| Summary: | This study was undertaken to examine the perceptions of top executives of the
relationships between the mission statement communication variables and firm
performance in Malaysian. Despite the immense popularity of the concept of mission
statement in the communication and management literature, limited empirical studies had
been carried out to investigate the relationships between the mission statement
communication variables and firm performance. The research design of the study was a
survey research based on a structured questionnaire and also content analysis of the
mission statement content. The informants were the Managing Directors and Chief
Executive Officers of public listed firms in the Bursa Malaysia as of 23rd October 2003.
One hundred and thirty six informants participated in the survey by returning the selfadministered
questionnaire distributed to them in two batches of mail distribution. Beside
the structural questionnaire, content analysis was conducted to measure the level of adequacy of mission statement content. The mission statements were compiled from the
firm annual reports, websites and also personal requests.
The dependent variable of the study, firm performance, was measured with four
perceptual items; namely the satisfaction of the respondents with the performance of the
firm based on sales, profit, growth and profit margin. To evaluate the convergent validity
of the perceptual measurements, correlations were made between the perceptual values
and two accounting ratios; Return on Sales and Return on Assets. The correlation
coefficients showed positive and significant measurements between the perceptual values
and the accounting ratios.
The independent variables of the study consist of selected mission statement
communication variables, identified from the literature on mission statement. Six mission
statement communication variables (intensity of personal mode of mission statement
communication, intensity of impersonal mode of mission statement communication,
commitment of leaders in selling the mission statement, satisfaction with the
communication efforts, credibility of the sellers and adequacy of mission statement
content) were hypothesized to have significant effects on firm performance.
The level of firm performance in the present study showed moderate level. Similarly, the
analysis of the five mission statement communication variables also showed moderate
level of satisfaction. The level of adequacy of mission statements content was analsyed
using Ashridge Mission Model of mission statement. The content analysis showed that fifty seven percent of the mission statements analysed was inadequate in terms of their
contents, as the mission statements do not contain the four contents needed in an effective
mission statement.
The results of the bivariate correlation analysis showed positive and significant
relationships between four of the mission statement communication variables and firm
performance except for the credibility of the mission sellers and adequacy of the mission
statement contents. The multiple regression analysis revealed that only the intensity of
personal mode of mission statement communication was observed to be good predictor of
firm performance and this variable contributed 22 percent of the variation of firm
performance in the study.
The results suggest that the intensity of personal mode of mission statement
communication play an important role and had direct relationship with the performance
of firms. At the practical level, the present study has clarified the nature of the
relationships between mission statement communication and firm performance. Only the
intensity of personal mode of mission statement communication has a direct influence on
firm performance. The results suggest that Managing Directors and Chief Executive
Officers who want to achieve the goals of mission statement must be personally involved
in the mission statement communication to the employees as their involvement will have
the biggest impact on firm performance. Managers must also ‘walk the talk’ and ‘talk
the walk’ the ideas of the mission statement to encourage the acceptance and adoption of
the mission statement by using the mission statement as a strategic yardstick of how they
manage the firms. |
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