Ruzita Jusoh

Competitive strategy and performance measurement in the Malaysian context

Purpose – The purpose of this paper is to contribute to a better understanding of competitive strategy and performance measurement in the Malaysian context by applying a modified version of Conant et als generic strategy scale and categorizing Malaysian firms along the Miles and Snow business strategy typology.Design/methodology/approach – Competitive strategy and performance measurement were assessed via survey. A total of 975 firms were randomly selected from the directory of Federation of Malaysian Manufacturers (FMM) as listed in 2003. Overall, 133 surveys were returned, 120 of which were usable for analysis.Findings – Results suggest that Malaysian firms view competitive strategy differently and are more likely than their Western counterparts to emphasize the use of financial measures of organizational performance. Findings also highlight the difficulties faced when Western measurement scales are employed in non‐Western emerging nations.Research limitations/implications – Because greater emphasis wa...

The performance consequence of multiple performance measures usage

Purpose – The purpose of this paper is to contribute to the body of knowledge in the area of performance measurement systems, particularly the BSC framework, by investigating empirically the extent of multiple performance measures usage and their effects on the performance of Malaysian manufacturers.Design/methodology/approach – The paper used a mail‐survey of companies listed in the Directory of the Federation of Malaysian Manufacturers (FMM), year 2003. The FMM Directory provides a database of over 2,000 manufacturing firms of various sizes producing a broad range of products. The FMM Directory was utilized because it specifically covers manufacturers and manufacturing‐related services. A simple random sample of 975 companies located in West Malaysia was drawn. Companies with at least 25 employees and annual sales turnover of at least RM10 million were selected. A total of 120 usable responses were gathered and used in the data analysis.Findings – The findings suggest that the use of non‐financial measu...

Relationship between information systems sophistication and performance measurement

Purpose – Studies in performance measurement systems (PMS) seem to receive little attention in the information system (IS) literature. The purpose of this paper, therefore, is to contribute to the stream of research in the fields of performance measurement and ISs.Design/methodology/approach – The paper examines how IS sophistication is linked to PMSs by investigating the use of performance measures in the Malaysian financial services industry. Data were collected from 140 financial institutions through self‐administered questionnaire survey of top‐level executives. A component‐based structural equation modelling, partial least squares, was used to test the research model.Findings – The results indicate that IS sophistication is a determinant of performance measures. The results also indicate that different dimensions of IS sophistication affect different dimensions of performance measures usage.Originality/value – The paper significantly extends prior research on performance measures by establishing IS s...

A multidimensional view of intellectual capital: the impact on organizational performance

Purpose – The purpose of this paper is to empirically explore intellectual capital (IC) from a multidimensional perspective and its relationship with organizational performance (OP) within Iranian public listed companies. Design/methodology/approach – Survey data from Chief Financial Officers in 128 companies within Tehran Stock Exchange were collected and analyzed using partial least squares regressions. Findings – The findings suggest that organizational culture plays a significant role in developing human capital and structural capital while trust is a major determinant of all the IC components, namely human, structural, relational, and social capital. The results also confirm that the investment in human, structural, and relational capital could potentially bring about OP improvement in Iranian public listed companies. Practical implications – A synthesis of various sub-elements of IC supports executives in detecting, capturing, and assessing the different kinds of knowledge resources which must be ta...

Management accounting system for hospitals: a research framework

Purpose – The purpose of this paper is to propose a framework to examine the relationship between contextual factors, management accounting system (MAS) and managerial performance within the health care industry. In particular, it aims to uncover the contextual factors influencing the design of MAS that would enhance managerial performance in Egyptian hospitals.Design/methodology/approach – The premise of contingency theory is utilized to identify the contextual factors that may influence the use of MAS; namely organizational strategy, technology, structure, external environment, and size. The mediating role of MAS on the impact of managerial performance is examined through the extent to which managers use the four information characteristics associated with the design of MAS: scope, timeliness, aggregated, and integrated.Findings – This framework provides clarity in linking the perceived usefulness of MAS information characteristics to managerial performance that has been viewed as problematic by past st...

Decentralization, perceived environmental uncertainty, managerial performance and management accounting system information in Egyptian hospitals

Purpose - – The purpose of this paper is to provide empirical evidence concerning: the relationships between decentralization, perceived environmental uncertainty, and management accounting systems (MAS) information and the relationships between MAS information and managerial performance within Egyptian hospitals. Design/methodology/approach - – Data were collected using questionnaires that were sent personally to the managers or heads of departments of Egyptian hospitals. Departmental level was used as the unit of analysis. Data obtained from 200 hospital managers were analyzed using partial least squares. Findings - – The study reveals that decentralization and environmental uncertainty, to some extent, are essential factors in designing efficient and effective MAS. Hospitals with decentralized structure make better use of timely, aggregated and integrated MAS information. Environment in which the hospitals operate does have significant influence on the type of information provided by the MAS. Research limitations/implications - – Using personally administered questionnaires causes the sample to be rather limited and not comprehensive enough. Practical implications - – The current study offers the hospital managers some useful aspects related to the function of MAS information that can be used to enhance their managerial performance. The provision of broad-scope and timeliness of MAS information can facilitate more effective managerial decisions. MAS designers and Egyptian policy makers should emphasize on decentralized decision-making by delegating sufficient authority to lower level managers as much as possible. Originality/value - – This study is one of the few studies done in Africa in the field of MAS, particularly in the context of Egyptian hospitals.

Business strategy-balanced scorecard measures alignment: an empirical test of its performance implications using systems approach

This study empirically examined the alignment between business strategy and the use of balanced scorecard (BSC) measures and its impact on firm performance. Alignment was conceptualised according to the systems approach as proposed by Drazin and Van de Ven who defined it as the internal consistency of multiple contingencies and multiple structural characteristics. Given the importance of non-financial performance measures in providing better indicators of performance, this study intends to address that, regardless of which business strategy firms emphasise, firms would rely on using multiple performance measures (both financial and non-financial measures) in their performance measurement system. Overall, the results indicate that the effect of alignment between business strategy and all four dimensions of BSC measures usage on non-financial performance is prominent among both high and low emphasis of business strategy. Hence, there is support found for the systems approach to fit.

Using a robust performance measurement system to illuminate intellectual capital

The central premise of the “fit-as-mediation” view states that knowledge-related factors could determine the usage and design of specific organizational systems, such as management accounting and control systems. This could, in turn, facilitate information processing and bring about positive organizational outcomes. While the influence of knowledge-based assets on measurable performance has been examined extensively in the intellectual capital literature, little is known concerning the role of an organizational control system in fostering the management of intellectual capital as the most strategic asset for organizations. As such, this study primarily aims to explore what role a performance measurement system plays in terms of the diversity of measurement in the relationship between intellectual capital and organizational performance. We incorporate social capital into the general three-dimensional classification of intellectual capital; namely, human capital, structural capital, and relational capital, to provide a more comprehensive measure of intellectual capital. Further, we conceptualize the diversity of measurement by supplementing the original Kaplan and Nortons BSC model with a new perspective, social and environmental measures. Such integration of financial, customer, internal business process, learning, and growth, along with social and environmental measures could result in an overarching and robust conceptualization of performance measurement; a concept that was barely mentioned in previous literature. We conducted a questionnaire survey involving chief financial officers of 128 Iranian public listed companies. Using the partial least squares (PLS), we find that companies with higher levels of intellectual capital emphasize a greater diversity of performance measures. The findings also show that the diversity of measurement mediates the relationship between intellectual capital and organizational performance. This paper may offer guidance to companies concerning the competencies needed for securing positive organizational outcomes from their knowledge resources, such as intellectual capital.

Moderating Effect of Balanced Scorecard Measures Usage on Strategy‐performance Relationship: An Empirical Study of Manufacturing Firms

This paper empirically examined the role of the balanced scorecard (BSC) measures usage as a potential moderator of the business strategy and performance relationship. Samples were taken from 120 manufacturing firms. Results of this study provide evidence that partially support the moderating effects of the BSC measures usage on the strength of the relationship between business strategy and firm performance.

Intellectual capital and performance measurement systems in Iran

Purpose This paper seeks to empirically explore how the effect of intellectual capital on organizational performance is indirect and mediated through performance measurement systems. Design/methodology/approach DData was collected from a survey of 128 chief financial officers (CFOs) of Iranian publicly-listed companies. Hypotheses were tested using partial least squares (PLS) regression, a structural modeling technique which is appropriate for highly complex predictive models. Findings Results from the structural model indicate that, in general, companies with a higher level of intellectual capital place a premium on the balanced use of performance measurement systems in a diagnostic and interactive style. Furthermore, the results provide some evidence that IC is indirectly associated with organizational performance through the intervening variable of the balanced use of interactive and diagnostic performance measurement systems. Practical implications This study sheds light on the issue of how senior man...