Rahat Munir

Association between performance measurement systems and organisational effectiveness

Purpose – The purpose of this paper is to investigate the role of performance measurement systems in organisational effectiveness in the context of the financial services sector within a developing country. Design/methodology/approach – Using the mail survey method data were collected from 69 financial institutions operating in Nepal. Multivariate analysis, in particular multiple regression analysis was employed to test the hypotheses. Findings – The results suggest that non-financial measures and feedback are tightly intertwined with organisational effectiveness. While institutions are focused on using the performance measures concerning internal business process perspective, less emphasis is placed on using customer and employee-related performance measures because they are considered less significant to organisational effectiveness. The findings also reveal that strategy-related feedback is considered more critical by management, as opposed to performance and staff. The study also provides evidence tha...

Performance measurement system change in an emerging economy bank

Purpose - This study aims to describe and understand performance measurement system (PMS) change in an emerging economy bank. Design/methodology/approach - Using institutional theory as a theoretical lens, the study uses Kasurinens accounting change model to explain management accounting change as a product of motivators, catalysts and facilitators. The model also focuses on how confusers, frustrators and delayers inhibit PMS change and the role of leaders in the change process. Data were gathered from multiple sources including relevant internal and external documents covering a ten-year period (1997-2007), and semi-structured interviews with managers from different hierarchical levels. Findings - The banks PMS experienced two significant changes from 1997 to 2007. While uncertain economic conditions, increasing competition, and pressures to improve performance and enhance accountability motivated changes in the banks performance measurement system, the major catalysts of change were the financial losses experienced, major regulatory changes, and the appointment of a new board of directors and president. The change leader played an important role in overcoming resistance to change and in ensuring adequate technical support and training was provided to facilitate the change. Practical implications - Bank managers must be aware of the influence of institutional factors on PMSs. In particular, they need to be aware of the factors that can necessitate change (motivators), initiate change (catalysts) and the prevailing conditions required to support change (facilitators) in order to maintain the utility of PMSs. Originality/value - The paper provides a more detailed insight into the impact of institutional factors on changes in PMSs in the context of an emerging economy, which will assist practitioners in addressing issues concerning PMSs changes in similar contexts.

Strategic responses to institutional pressures for sustainability: The role of management control systems

Purpose - The purpose of this paper is to examine the role of management control systems (MCS) in strategically responding to institutional pressures for sustainability (IPS). Drawing on institutional theory (DiMaggio and Powell, 1983) and strategic responses to institutional pressures framework (Oliver, 1991), the study argues that organisations strategically respond to IPS using MCS. Design/methodology/approach - Data were collected by interviewing sustainability managers of a large-scale multinational apparel manufacturing organisation with its headquarters in Sri Lanka. Findings - The study finds that organisations actively respond to IPS using acquiescence, compromise, avoidance, defiance, and manipulation strategies. The results not only reveal that formal MCS play a critical role in complying with IPS, but also in more active responses, including compromise, avoidance, defiance, and manipulation. The findings highlight that organisations use MCS as a medium to respond strategically to IPS, and in turn, the use of MCS has important implications for organisational change and improvement. Practical implications - The study has implications for Western organisations, finding that suppliers committed to sustainability in Asia strategically respond to IPS as a means of strengthening outsourcing contracts, instead of blindly accepting. Findings indicate that organisational changes and success seem to be a function of strategically responding to IPS rather than operating an organisation by neglecting sustainability challenges. The organisational ability to use MCS in strategically responding to IPS has the potential for long-term value creation. Originality/value - This study provides novel insights into the MCS, strategy and sustainability literatures by exploring different uses of MCS tools in strategically responding to IPS. More specifically, it shows how the use of MCS tools varies in supporting strategic responses, and with respective IPS. In doing so, it enhances our understanding of the importance of the use of MCS in dynamics of institutional change and practical variances in strategically responding to IPS.

Influence of institutional pressures on performance measurement systems

Purpose Grounded in DiMaggio and Powell’s (1983) institutional isomorphism perspective of institutional theory, the purpose of this study is to examine the influence of institutional pressures on the performance measurement system (PMS) within banks and financial institutions. Design/methodology/approach A survey was used to collect data from 71 banks and financial institutions operating in Australia. Findings Four institutional pressures, the normative pressure “corporate change” and the coercive pressures “economic and financial legislation”, “socio-economic political pressures” and “banking regulations” were found to be associated with the use of multi-dimensional performance measures. In addition, the coercive pressure “economic and financial legislation” and the normative pressure “corporate change” were associated with the use of financial, internal and learning and growth performance measures. Finally, the use of internal and learning and growth measures was positively associated with the coercive force “socioeconomic-political pressures”, and the use of financial measures was associated with the coercive pressure “banking regulations”. Research limitations/implications Given the recent global financial crisis, the study offers a reference within the contemporary performance measurement literature in relation to the influence of institutional pressures on the PMS within banks and financial institutions. Originality/value While prior research has focused on manufacturing organisations, this study deepens our understanding of the institutional environment of banks and financial institutions and how specific coercive, mimetic and normative forces influence the PMS.

Political connections and organisational performance: evidence from Pakistan

This paper aims to investigate the association between political connections (PCs) and organisational performance in a South Asian country, Pakistan.,Data were collected for 250 non-financial organisations listed on the Karachi Stock Exchange of Pakistan. Multiple linear regression analysis was used to empirically test the research question.,PCs in Pakistan are common across all industries. The study found a significantly negative effect of PCs on organisational performance, measured in terms of return on assets and return on equity. In addition, negative association of PCs with organisational performance is more pronounced for organisations having connections with politicians, compared to those having connections with former government officials.,The study extends the PCs literature by providing evidence of the impact of PCs on organisational performance in a South Asian country. Several implications for organisations, banks, accounting professionals and policy-makers are provided.

Organisational culture and strategic change in Australian local governments

ABSTRACT This study examines the impact of organisational culture on strategic change in local governments in Australia. The findings indicate that strategic change is affected by two organisational culture factors, innovation and attention to detail. This study contributes to the management accounting contingency literature and the public management literature by providing an insight into the role of organisational culture as a contingency factor influencing strategic change. Such findings may be used by local government managers to enact change effectively.

Diffusion of corporate social responsibility in the airline industry

Purpose The purpose of this paper is to explore how and why corporate social responsibility (CSR) is diffused within the organisation and investigate the factors that influence the diffusion of CSR in the context of a developing country. Design/methodology/approach Drawing on the diffusion of innovations theory, data were collected from a Nepalese airline company through semi-structured interviews supported by relevant documentary scrutiny. Findings The findings of this study indicate that the airline company’s CSR practices are aimed at enhancing organisational performance. The adoption of CSR is also seen as a proactive strategy to avoid any future risk associated with their environmental impact. The findings reveal that organisations’ strategy, cultural values and beliefs and top management support are important predictors of the adoption of CSR. Practical implications The empirical findings of this study provide valuable insights into how CSR can enhance organisations’ performance if CSR is used in a strategic way. The study also highlights the important role of cultural values and beliefs in the secondary stage of adoption (or internal diffusion), as successful implementation of CSR is highly unlikely to happen without focusing on appropriate culture within the organisation. Originality/value This study extends research on diffusion of innovations literature by focusing on both the initial and post-adoption process (primary and secondary stage of diffusion) of CSR within a single airline company operating in a developing country, Nepal.

Associations between organisational factors, TQM and competitive advantage: evidence from an emerging economy

Purpose The purpose of this paper is to examine the association between the extent of adoption of TQM, using Kaynak’s (2003) core TQM practices (quality data and reporting, supplier quality management, product/service design, process management) model and competitive advantage. In addition, the study examines the antecedent role of organisational-related factors (intensity of market competition, information technology (IT), expert systems and the supplier evaluation programme) in respect to the extent of adoption of TQM. Design/methodology/approach A survey was conducted of 673 business units of garment organisations in a developing country, Bangladesh. Findings The findings indicate that the extent of adoption of TQM practices was positively associated with competitive advantage. In addition, two organisational-related factors (intensity of market competition and IT) were positively associated with the extent of adoption of TQM. Practical implications The findings provide an insight into the ability of TQM to facilitate competitive advantage in developing countries. Practitioners are also provided with an insight into which organisational factors facilitate the adoption of TQM practices. Originality/value The findings provide an important insight into the use and value of TQM practices in developing countries.

The relationship between the enabling use of controls, employee empowerment, and performance

Purpose The purpose of this paper is to examine the association between Simons’ (2000) enabling (beliefs and interactive) use of controls with employee empowerment, and the subsequent influence on organisational performance. Design/methodology/approach A survey questionnaire was distributed to 636 Australian manufacturing organisations. Findings The findings indicate that the enabling use of controls is associated, both directly and indirectly, through the level of employee empowerment, with organisational performance. Originality/value This paper provides an initial empirical insight into the relationship between the use of controls with the level of employee empowerment. The findings highlight the significant interrelationship between the enabling use of controls and employee empowerment and the importance of both facets in enhancing organisational performance.

Corrigendum to “Proactive sustainability strategy and corporate sustainability performance: The mediating effect of sustainability control systems” [J. Environ. Manag. 196 (2017) 569–582]

Corrigendum to “Proactive sustainability strategy and corporate sustainability performance: The mediating effect of sustainability control systems” [J. Environ. Manag. 196 (2017) 569e582] Chaminda Wijethilake a, b, , Rahat Munir , Ranjith Appuhamy a a Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia b Department of Management & Finance, General Sir John Kotelawala Defence University, Ratmalana, Sri Lanka