The Mediating Effect of Management Accounting Systems on the Relationships between Contextual Variables and Organizational Performance
|
|
- Alvin Palmer
- 8 years ago
- Views:
Transcription
1 The Mediating Effect of Management Accounting Systems on the Relationships between Contextual Variables and Organizational Performance Siti Zaleha Abdul Rasid, Abdul Rahim Abdul Rahman, Wan Khairuzzaman Wan Ismail, Mohd Hassan Mohd Osman and Muslim Amin Accounting systems were found to differ from one situation to another and variables such as technology, organization structure and environment were used to explain the differences in the design and use of an accounting system. However, there has been a lack of empirical evidence on Management Accounting Systems (MAS) studies in the services sector, particularly the financial services sector. The objective of this study is to examine the mediating role of MAS in the relationship between perceived intensity of market competition, innovativeness and technological advancement on organizational performance in financial institutions. In this study, MAS is viewed in a broader aspect and it focuses on the four dimensions of MAS information characteristics namely scope, timeliness, integration and aggregation. The research method involved administering a questionnaire to 106 financial institutions listed on the Malaysian Central Bank s website and the respondents were the chief financial officer (CFO) of the institutions. Based on path analysis and Sobel s test, the results indicate that MAS mediates the relationship between competition and technological advancement on performance and it is actually resulting from the significant indirect effects on nonfinancial performance. On the other hand, innovativeness directly influences performance. The results suggest that as competition intensifies and technologies becoming more advanced, financial services institutions make greater use of their MAS information in formulating, implementing and monitoring their strategies, and the outcome is improved organizational performance. Field of Research: Management Accounting, Financial Services Siti Zaleha Abdul Rasid, International Business School, Universiti Teknologi Malaysia. szaleha@ic.utm.my Abdul Rahim Abdul Rahman, International Islamic University Malaysia. abdulrahim@iiu.edu.my Wan Khairuzzaman Wan Ismail, International Business School, Universiti Teknologi Malaysia. m-wkhair@utm.my Mohd Hassan Mohd Osman, International Business School, Universiti Teknologi Malaysia. m-hassan@utm.my Muslim Amin. International Business School, Universiti Teknologi Malaysia. muslim.a@ic.utm.my 1
2 1.0 Introduction Financial liberalization and technological revolution intensify the competitive pressures among the financial institutions. In the liberalization effort, government provides more conducive business environment, in which while maintaining the safety and soundness of the sector, financial institutions are also given the flexibility to develop their own strategies to remain competitive. Globalisation forces financial institutions to be stronger in order to compete internationally better. In order to remain competitive, some financial institutions started to consolidate as mergers seem to be the best vehicle to realize operating cost efficiencies and profitability gains (Lissette, 1997). At the same time, advancement in technology allows financial institutions to develop new and efficient delivery and processing channels, as well as allows financial institutions to be more innovative in delivering new products and services. The complexity of the financial services business has also increased due to the emergence of the increasingly innovative products and distribution channels. This highly competitive environment prompts financial institutions managers to meet their customers expectations much more closely to ensure the survival and success of the business. Within this uncertain environment, the managers need more information for decision making. An appropriate information system can help managers satisfy their customers expectations and thus, achieve organizational goals (Damonte et al., 1997). Consequently, management accounting systems (MAS) is designed to provide sophisticated information for decisionmaking, improvement, and control in organizations (Atkinson et al., 2001). Well designed and appropriate MAS will assist managers to be more effective in decision-making which will then help organizations to improve their efficiency and remain competitive in the ever challenging environment. In order to meet the challenges of globalisation and liberalization, the addition of managerial accounting concepts and techniques to the existing financial reporting structures will enhance competitive edge among financial institutions (Rezaee, 2005). However, most of the previous researches on MAS are biased towards the manufacturing sector in developed countries. Due to the lack of research on management accounting in the service sector (Modell, 1996; Hussain, 2000; Sharma, 2002; Chenhall, 2003), particularly the financial services sector, the aim of this study is to examine the mediating role of MAS in the relationship between perceived intensity of market competition, innovativeness and technological advancement on organizational performance in financial institutions. In this study, MAS is viewed in a broader aspect and it focuses on the four dimensions of MAS information namely scope, timeliness, integration and aggregation. The paper starts with background literatures. Subsequent sections provide the development of hypotheses and a delineation of the research method. It is then followed by the discussion of the results and the last section concludes the paper. 2.0 Literature Review Management Accounting Systems (MAS) refers to the systematic use of management accounting to achieve organizational goals. The International Federation of Accountants 2
3 (IFAC, 1998) defines management accounting as the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information (both of financial and operating) used by management for planning, control and effective use of its resources. Thus, management accounting becomes an integral part of the management process in financial institutions, which provides information essential for (i) controlling the current activities of an organization; (ii) planning its future strategies, tactics and operations; (iii) optimizing the use of its resources; (iv) measuring and evaluating performance; (v) reducing subjectivity in the decision making process; and (vi) improving internal and external communication (IFAC, 1998). The MAS in an organisation is expected to be available to managers in an appropriate format and on demand to satisfy managers information needs (Govindarajan, 1984; Mia and Chenhall, 1994). MAS is actually part of management control systems (MCS) and it is considered as an organizational control sub-system device (Otley, 1980; Gul and Chia, 1994; Chong, 1996; Chenhall, 2003). Chia (1995, p. 812) defined MAS as an organizational control mechanism which facilitates control by reporting and creating visibility in the action and performance of its members. The information need of MAS for decision making, planning and control can be considered in terms of its general information characteristics that can be classified into scope, timeliness, integration and aggregation (Chenhall and Morris, 1986; Chia, 1995; Lal and Hassle, 1998; Bouwens and Abernethy, 2000; Moores and Yuen, 2001; Tillema, 2005; Agbejule, 2005). The scope of an information system consists of three subdimensions namely focus, quantification and time horizon (Gordon and Miller, 1976; Gordon and Narayanan, 1984; Chenhall and Morris, 1986). A broad scope MAS provides information which is externally focused (e.g. economic conditions etc), nonfinancial (e.g. customer preferences etc) and future oriented (e.g. probabilistic) (Chenhall and Morris, 1986; Gul and Chia, 1994; Choe, 1998; Bouwens and Abernethy, 2000). Timeliness of information refers to the provision of information on request and the frequency of reporting collected information. MAS with timely information would be able to report upon the most recent events and provide rapid feedback on decisions (Chenhall and Morris, 1986). Integrated MAS characteristics which may assist coordination would consists of information about the activities of other departments within the firm and information on the impact that decisions in one department may influence the performance of other departments. The information could relate to the inputs, outputs, the operating processes and the technology employed by other departments (Chenhall and Morris, 1986; Bouwens and Abernethy, 2000). Information aggregation deals with a variety of ways to collect or sum the data within periods of time or area of interest, such as responsibility centers or functional areas (Choe, 1998). Aggregate information represents summarized information that covers periods of time or diverse management area, while disaggregated information means too much detailed information that may include only one period or one functional area (Choe, 1998). MAS is considered sophisticated when the systems produce information that is broad in scope, timely, integrated and aggregated. The Balance Scorecard (BSC) is an example of MAS tools having all the four information characteristics (Tillema, 2005). While 3
4 activity based costing (ABC) systems provide information that is integrated and aggregated (Choe, 2004). The characteristics of the information produced should be considered in designing MAS in an organisation. As MAS facilitate decision-making within organizations, it should be tailored to an organisation s needs. Accounting systems were found to be different from one situation to another and variables such as technology, organisation structure and environment were used to explain the differences in the design and use of an accounting system (Otley, 1980; Emmanuel et al., 1990). The question of which contingency factors influence MAS sophistication has received considerable attention in the literature. The key contextual variables at the organizational level are environment, structure and technology (Emmanuel et al., 1990; Choe, 1998). The financial services sector in Malaysia is specially shaped by the forces of advances in technology, the trends in towards greater market orientation and financial innovation (BNM, 2005). In this study, perceived intensity of market competition represents the external environment. Structure was not specifically studied because most of the organizations studied were large in size and large in size has always been associated with decentralized structure (Lal and Hassel, 1998). Technological advancement represents the technology variable. This is an important variable as financial institutions are technology-intensive organizations (Shanmugam and Guru, 2003; Zhu et al., 2004). In addition, innovativeness has been added as an additional contextual variable. Innovativeness, in turn is related to Miles and Snow s prospectors, Govindarajan s builders and Mintzberg s entrepreneurs strategies (Chenhall and Morris, 1995). Prospectors are innovators, in which they are continually developing and shaping their product domain through innovation of products and services (Miles and Snow, 1978; Chong and Chong, 1997). However, contrary to prior research which focuses on certain typology of strategy, this study focuses on innovativeness as a key strategic attribute (Subramaniam and Mia, 2003). Consistent with contingency theory that postulates that particular features of an appropriate control system will be determined by the specific circumstances in which an organization operates (Otley, 1980; Dent, 1990; Otley, 1995), it is expected that competition, innovativeness and technological advancement will influence use of MAS information and MAS will influence organizational performance, as presented in Figure 1. FIGURE 1: Research Model COMPETITION INNOVATIVENESS MAS PERFORMANCE. TECHNOLOGICAL ADVANCEMENT 4
5 3.0 Variables and Hypotheses Development 3.1 Perceived Intensity of Market Competition and MAS The intensity or degree of competition in an industry depends on the interplay and strength of threats of new entrants, threats of substitute products and services, bargaining power of customers, bargaining power of suppliers and rivalry among existing competitors (Porter, 1985; Brignall and Ballantine, 1996; Mia and Clarke, 1999; Mia and Patiar, 2001). As financial institutions are constantly competing against the same group of customers, they are required to make continuous improvements to their existing products and services in order to remain competitive (Haron and Ahmad, 1998; Mia and Patiar, 2001). Financial institutions have to adopt appropriate operational and marketing strategies that can reduce costs and improve customer service in terms of speed and efficiency (Haron and Ahmad, 1998). Khandwalla (1972) asserted that the sophistication of accounting and control systems was influenced by the intensity of competition. When competition is intense, environment becomes more uncertain and thus, managers require more informative information for their day-to-day planning and control activities (Chong et al., 2005). Managers are compelled to make extensive use of information from the MAS in order to make more effective decision (Galbraith, 1973; Chenhall and Morris, 1986; Mia and Clarke, 1999). Hence, it is expected that perceived intensity of market competition will influence the use of MAS information. 3.2 Innovativeness and MAS Innovation can be broadly defined to encompass a range of types, including new products or services, new process technologies, new organizational structures or administrative systems, or new plans or programs related to organizational members (Damanpour, 1996). Innovativeness may have some implications on the MAS design in an organization. Innovation often involves trial and error with some uncertainty on the rate of success (Russell and Russell, 1992). To cope with uncertainty, decision makers normally collect more information (Galbraith, 1973; Gordon and Narayan, 1984). Thus, due to the uncertainty associated with innovation, organizations may require more sophisticated MAS information to facilitate decision making, planning and control. Broad scope information will provide a wider range of solutions to consider as it covers a diverse range of areas such as economic (e.g., total market sales, organization s share of that market, GNP) and non-economic (e.g., technological advances, sociological changes, demographic developments) aspects of the environment (Chia, 1995; Bouwens and Abernethy, 2000). The use of integrated information will reduce uncertainty regarding innovation as it encourages learning and the generation of ideas within departments in the organizations (Bouwens and Abernethy, 2000 and Atkinson et al., 2001). Aggregation of information enables managers to process larger quantities of information (Bouwens and Abernethy, 2000) which will help managers to optimize decision making (Gul, 1991). Timely MAS information will enable managers of 5
6 innovative organizations to continually adjust their activities in response to changes related to products, services or processes (Bouwens and Abernethy, 2000). Up-to-date information is important for product innovation in order to gain competitive advantages (Moores and Yuen, 2000). In fact sophisticated MAS information is useful for organizations to benchmark their innovation performance against competitors (Mia and Clarke, 1999). Hence, it is expected that organizations that are more innovative will use more sophisticated MAS information in terms of scope, aggregation, integration and timeliness. 3.3 Technological Advancement and MAS Generally, technology refers to how the organisation s work processes operate (the way tasks transform inputs into outputs) and includes hardware (such as machines and tools), materials, people, software and knowledge (Chenhall, 2003 pp. 139). Technology plays a significant role in the design and delivery of services, particularly in the financial services. As competition intensifies, profit margins are going to shrink and financial services firms will have no other options for maintaining margins than shifting to low-cost electronic transactions for continued earnings growth. The financial services is an information intensity industry, thus there is a relatively higher percentage of revenue spent on information and communication technologies (ICT) investment. In fact, the financial services industry was one of the first to adopt the Internet technologies and to innovate with e-business applications such as online brokerage, banking, and mortgage lending (Zhu, et al., 2004). The financial services industry requires technology to remain competitive and attractive, thus technology is always a key part of service operations (Shanmugam and Guru, 2003). Basically the use of IT in financial services can be categorized into front end transactional-oriented technology and back end office automation (Pennings and Harianto, 1992; Zhu et al., 2004). On the front end, IT is used to execute and record customer transactions, whether they are handled in persons or by the use of technology such as ATMs, telephones, point of sales systems, home banking services, electronic transfer funds, or on the Internet. Computer and telecommunication technologies are used for back-office automation (Pennings and Harianto, 1992). Funds are normally transferred among institutions via electronic transfer systems which handle huge amount of money and financial EDI systems are normally used to support information flows among institutions (Zhu, et al., 2004). Technological advancement has some implications on the types of MAS information required by firms. Large amount of planning information and future-oriented trend information is required to cope with frequent changes in technology (Nanni et al., 1992). Furthermore, large amount of control and coordination information is also required to cope with the increase integration and collaboration within and across business functions that goes along with the use of technology (Choe, 2004). Hence, it is proposed that technological advancement will influence the use of MAS. 6
7 3.4 MAS and Organizational Performance Properly designed MAS is likely to provide managers with information for setting appropriate performance targets, performance evaluation standards and feedback on performance leading to improved managerial performance (Mia, 1993; Stock and Watson, 1984; Moriarty, 1979) which in turn lead to improved organizational performance. The use of MAS information can enhance organization s performance by providing feedback on the effectiveness of their decision-making. Feedback information can assist managers in the organization to improve performance as it permits them to identify and correct errors and reduced task uncertainty by providing relevant information. This argument is supported by Ferris and Haskins (1988) who suggested that MAS in an organization provides managers with information for learning about problems, about outcomes (i.e., feedback) and about opportunities, leading to appropriate and accurate decisions in response, and such decisions are likely to result in an improvement of organizational performance. It is expected that MAS which is properly designed to suit the contextual requirements of an organization should promote effective managerial decision making, leading to an improvement in organizational performance. Provision of the necessary information by MAS assists managers in enhancing the quality of decisions they make, and consequently improving organization s performance (Chenhall, 2003; Mia and Chenhall, 1994; Mia, 1993; Chenhall and Morris, 1986; Gordon and Narayanan, 1984). 3.5 The Role of MAS on the Relationship between Contextual Variables and Organizational Performance The preceding sections considered the direct effects of perceived intensity of market competition, innovativeness and technological advancement on MAS and the direct effects of MAS on performance. Following Mia and Clarke (1999), if, the perceived intensity of market competition, innovativeness and technological advancement are related to MAS and MAS are related to performance, then the indirect effects of perceived intensity of market competition, innovativeness and technological advancement acting through MAS on performance may be proposed. H 1 : H 2 : H 3 : There is a positive indirect effect of perceived intensity of market competition, acting through MAS, and organizational performance. There is a positive indirect effect of innovativeness, acting through MAS, and organizational performance. There is a positive indirect effect of technological advancement, acting through MAS, and organizational performance. 4.0 RESEARCH METHOD The research method involved administering a questionnaire to financial institutions. This study took the whole population of banking and insurance companies listed on the 7
8 Malaysian Central Bank website. Questionnaires were sent to 106 financial institutions (including commercial banks, Islamic banks, merchant/investment banks, discount houses, development financial institutions and insurance companies). The choice of single industry in this study will minimize environmental heterogeneity (Dess and Davis, 1980; Moores and Yuen, 2003). The questionnaire was mailed to the Chief Financial Officer (or head of finance department) of each firm. The unit of analysis for this study is organization, thus top-level managers would be the most appropriate respondents. The pre-test also suggested that top-level managers would be familiar with all aspects of the questionnaire. 72 responses were received, representing a response rate of 68%. As shown in Table 1, the largest number of respondents was Head of Finance/General Manager Finance/Vice President Finance (37.5%), followed by Finance Manager (23.6%), CFO/Director of Finance (18.1%), Senior Manager Finance/Assistant Vice President Finance (15.3%) and others (5.6%). Majority of the firms (55 or 76.4%) had more than 100 employees. This indicates that the majority of the firms involved in this survey were large in size. Table 1: Profile of Respondents and Firms Background Variable Job Designation Number of Employees Categories Frequency Percentage CFO/Director of Finance Head of Finance/GM Finance/Vice President Finance Senior Manager Finance/ Assistant VP Finance Finance Manager Others Less than More than 1000 No information Variable Measurement Model Perceived intensity of market competition was measured with an eight-item instrument used by Mia and Clarke (1999) and Chong et al. (2005), which was developed based on Khandwalla (1977). Accordingly, respondents were asked to indicate the extent to which price, product range, service quality, new product introduction, advertising and promotion, technological change and change in government regulation have intensified competitive pressure as well as the importance of each item to the organisation s long term profitability on a five-point Likert scale, varying from (1) very low to (5) very high. Innovativeness was measured with a seven-item instrument adapted from Bisbe and Otley (2004), Das and Joshi (2006) and Damanpour (1991). Each respondent was required to rate his organization s level of innovativeness in comparison with the industry average on a five-point Likert scale, varying from (1) well below average to (5) 8
9 well above average. Technological advancement was measured using instruments used for financial services firms along three dimensions: (i) technologies in use, such as intranet, extranet, EDI, EFT etc.; (ii) front-end Web site functionalities; and (ii) back-end integration that measures the extent to which various information sources and databases in the back office are connected within and beyond a firm s boundary (Zhu et al. (2004). Accordingly, respondents were asked to indicate the extent to which their organizations use those technologies on a five-point Likert scale ranging from (1) not at all to (5) to a very great extent. Use of MAS information was measured based on Bouwens and Abernety (2000) and Chenhall and Morris (1986) but the respondents were asked to answer the extent of use of the MAS information, as it is actually the extent of use of MAS information that enhances decision effectiveness and ultimately impacts on performance (Chong 1996; Chong and Eggleton, 2003). Consistent with Chong and Eggleton (2003) and Agbejule (2005), each respondent was asked to indicate the extent of use of broad scope, timely, integrated and aggregated information which was available from their MAS for decision making, planning and control on a five-point Likert scale, varying from (1) not at all to (5) to a very great extent. Perceived organizational performance was measured based on instruments adopted by Mia and Clarke (1999) and Khandwalla (1972) with some modifications to suit the financial services sector. The respondents were asked to indicate the extent to which their organizations have been successful in attaining their planned targets by considering only those performance targets that are relevant to their organizations. The advantage of using these broad measures of performance is that it incorporates all aspects of business performance, including qualitative and quantitative and financial and non-financial measures (Mia and Clarke, 1999). The measures of the various variables were subjected to factor analysis. The PCA extraction method with varimax rotation was used to determine whether all the items in each variable were clustered together or not. PCA is a statistical approach that can be used to analyse interrelationships among a large number of variables and to explain these variables in terms of their common underlying dimensions (factors) (Hair et al., 2006). With PCA, the information contained in a number of original variables is condensed into a smaller set of variables (factors) with a minimum loss of information (Hair et al., 2006). One factor was extracted from perceived intensity of market competition variable. One factor was also extracted from the innovativeness variables. Two factors were extracted from the technologies in use variable and one factor was extracted from the front-end and back-end variable. However, these three factors of technological advancement were aggregated into one variable as all these factors are linked together (Zhu et al., 2004; Zhu and Kraemer, 2002). The three factors combined together reflect the advancement of technology in creating value for conducting financial services (Zhu et al., 2004). One factor was also extracted from each of the MAS dimensions. These four factors were aggregated to determine MAS. Two factors were extracted from the organizational performance variable. Reliability test was conducted on the factors (variables) extracted from the principal component analysis to assess the degree of consistency between multiple items of the 9
10 variable. The Cronbach s alpha value was used to test the reliability as shown in Table 3. The Cronbach s alphas of the variables were all above 0.80 which was considered good (Sekaran, 2000). Table 2: No of items and Cronbach s alpha Variables No. of Items Cronbach s alpha MAS Scope MAS Timeliness MAS Integration MAS Aggregation Perceived intensity of market competition Innovativeness Technological advancement Organizational Non-financial performance Organizational Financial performance Result and Discussion Tests of the indirect effects of perceived intensity of market competition, innovativeness and technological advancement acting through MAS on performance were conducted through a path analysis and Sobel s (1982) test. This test is to examine whether the use of MAS information enables organizations to face the challenge of competition, innovation and technological advancement, which in turn results in improved organizational performance. A traditional path analysis approach using multiple regressions was used to compute the direct and indirect path coefficients. The path coefficients were equivalent to beta coefficients by first regressing non-financial performance (NFPER) and financial performance (FPER) on COMP, INNO, TECH and MAS which is represented by equation 1a and 1b respectively. The second step is to regress MAS on COMP, INNO and TECH as reflected in equation 2 below. Three multiple regressions were run, based on these equations: 1a. NFPER = Constant +B1COMP + B2INNO + B3TECH + B4MAS + 1b. FPER = Constant +B1COMP + B2INNO + B3TECH + B4MAS + 2. MAS = Constant + B1COMP + B2INNO + B3TECH + The results of the three regressions above are as follows: 10
11 Table 3 (a) Results of Regression Analysis for the effects of COMP, INNO, TECH and MAS on NFPER. Predictor Unstandardised Standardized Collinearity Statistics Variables Coefficients Coefficients Beta t-value Sig. Tolerance VIF (Constant) COMP INNO TECH MAS R 2 = 0.390; Adjusted R 2 = 0.353; F= ; Sig. F = (b) Results of Regression Analysis for the effects of COMP, INNO, TECH and MAS on FPER. Predictor Variables Unstandardise d Coefficients Standardized Coefficients Collinearity Statistics Beta t-value Sig. Tolerance VIF (Constant) COMP INNO TECH MAS R 2 = 0.173; Adjusted R 2 = 0.123; F= 3.460; Sig. F = (c) Results of Regression Analysis for the effects of COMP, INNO and TECH on use of MAS. Predictor Variables Unstandardise d Coefficients Standardized Coefficients Collinearity Statistics Beta t-value Sig. Tolerance VIF (Constant) COMP INNO TECH R 2 = 0.382; Adjusted R 2 = 0.354; F= ; Sig. F =
12 Analysis was carried out to determine the significance of the indirect effects using Sobel s (1982) test. Baron and Kenny (1986) proposed to use Sobel s (1982) test to provide an approximate significance test for the indirect effect. The formula is as follows: Z ab = a * b / se ab or Z cd = c * d / se cd or Z ed = e * d/ se ed where se ab = (a 2 * se b 2 ) + (b 2 * se a 2 ) se cd = (c 2 * se d 2 ) + (d 2 * se c 2 ) se ed = (e 2 * se d 2 ) + (d 2 * se e 2 ) In this formula, a,b,c,d and e are the unstandardized path coefficient and se refers to the standard error. The path diagram can be shown in Figure 3. Figure 3: Path Diagram for Sobel Test (based on unstandardised coefficients) COMP a=0.334 se=0.105 TECH c=0.299 Se=0.096 MAS b=0.292 se=0.098 NFPER FPER INNO e = se=0.097 d = se=0.143 Based on the Sobel s (1982) tests, analysis of the indirect effects are as follows: 12
13 Table 4 Analysis of Indirect Effects based on Sobel s (1982) test Path/Indirect Effects COMP on NFPER via MAS TECH on NFPER via MAS INNO on NFPER via MAS COMP on FPER via MAS TECH on FPER via MAS INNO on FPER via MAS Indirect Effect Coefficients Std Deviations t-value p-value 0.334x0.292= ** 0.299x0.292= ** 0.148x0.292= (ns) 0.334x0.236= (ns) 0.299x0.236= (ns) 0.148x0.236= (ns) The results of the Sobel s (1982) test show that only the indirect effects of COMP and TECH on NFPER were significant. The indirect effect of INNO on NFPER was not significant. All the indirect effects on FPER were also not significant. The result shows that MAS mediates the relationship between COMP and TECH on organizational performance and it is actually resulting from the significant indirect effects on NFPER. There is not enough evidence to conclude that MAS mediates the relationship between COMP and TECH on FPER. There is also not enough evidence to conclude that MAS mediates the relationship between INNO and NFPER and FPER. Thus the results can be summarized as follows: H 1 H 2 H 3 Hypotheses There will be a positive indirect relationship between perceived intensity of market competition, acting through MAS and organizational performance. There will be a positive indirect relationship between innovativeness, acting through MAS and organizational performance. There will be a positive indirect relationship between technological advancement, acting through MAS and organizational performance. Results Partially Supported Not Supported Partially Supported 13
14 6.0 Conclusion The results suggest that when competition is intense, financial institutions have to equip themselves with MAS that can provide sophisticated information. The availability and use of MAS information will help them to formulate and implement strategies to cope with the competitive environment, and the outcome will be improved performance (Mia and Clarke, 1999). The findings also substantiate the importance of MAS for financial institutions operating in an e-business environment to improve performance. MAS has the potential to provide information, to cope with uncertainties that are triggered by the adoption of e-business, that results in enhanced organizational performance. There are two main uncertainties associated with the adoption of e-business that have some implications on MAS customers can easily switch to different service providers and technology changes quickly. Hence, to create value it is very important to provide good customer service. Broad scope MAS, that are non-financial in nature, such as the number of new Internet banking users and the time taken to process applications online, will help improve services. Benchmarking is also very important to make the services more attractive than those provided by competitors. As technology changes very fast, financial institutions have to also continuously innovate by leveraging on new technology to provide quick responsive products and services (Shah et al., 2007). System integration is essential to provide prompt services (Shah et al., 2007). Although MAS only plays a mediating role in the relationship between intensity of market competition and technological advancement on non-financial organizational performance, this study clearly contributes to the limited appreciation of the way in which the intensity of market competition and technological advancement and MAS, combine to enhance non-financial organizational performance. It is crucial to manage organizational non-financial performance as it is a leading indicator that will subsequently be translated into financial performance (Ittner et al, 2003; DeBusk et al., 2003; Ittner and Larcker, 1998). For example, Ittner and Larcker (1998) and Hussain et al., (2002) found that customer satisfaction measures are a leading indicator of accounting performance measures. Increased customer satisfaction leads to increases in sales and profit. As for the contingent variable of innovativeness, the results show that the relationship with organizational performance is mostly direct. The direct relationship between innovativeness and performance was reported in prior studies (see for example Das and Joshi, 2007; Hult et al., 2004; Deshpande and Farley, 2004). Although Sobel s (1982) test did not provide evidence of the indirect relationship, the results indicate that the role of MAS in mediating the relationship between innovativeness and organizational performance is somewhat important (for example, Mia and Clarke, 1999; Sharma, 2002). Innovation is normally carried out in the face of much uncertainty as asserted by Khandwalla (2006), thus requiring MAS to enhance decision making and for better performance. Hence, innovativeness seems to have direct and indirect effects on organizational performance and the indirect is through the use of MAS information. 14
15 References Agbejule, A The relationship between management accounting systems and perceived environmental uncertainty on managerial performance: a research note. Accounting and Business Research, 35(4), Atkinson, A.A., Banker, R.D, Kaplan, R.S. and Young, S.M Management Accounting. 3 rd Edition. Prentice Hall: New Jersey. Bank Negara Malaysia Governor s keynote address at the Islamic Bankers Forum 2005: Islamic Finance: Promoting the Competitive Advantage. Available online at Baron, R.M. & Kenny, D.A The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), Bouwens, J. and Abernethy, M.A The consequences of customization on management accounting system design. Accounting, Organizations and Society, 25(3), Brignall, S. & Ballantine, J Performance measurement in service businesses revisited. International Journal of Service Industry Management, 7 (1), Bisbe, J. & Otley, D. (2004). The effects of the interactive use of management control systems on product innovation. Accounting, Organizations and Society, 29, Chenhall, R. H Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society., 28, Chenhall, R.H. & Morris, D The impact of structure, environment and interdependence on the perceived usefulness of management accounting systems. The Accounting Review, 61 (1), Chenhall, R.H. & Morris, D Organic decision and communication processes and management accounting systems in entrepreneurial and conservative business organizations. Omega, 23 (5), Chia, Y.M Decentralization, management accounting system (MAS) information characteristics and their interaction effects on managerial performance: A Singapore study. Journal of Business Finance & Accounting. 22(6), Choe, J The effects of user participation on the design of accounting information systems. Information & Management, 34, Choe, J The relationships among management accounting information, organizational learning and production performance. Journal of Strategic Information Systems, 13, Chong, V.K. & Chong, K.M Strategic choices, environmental uncertainty and SBU performance: A note on the intervening role of management accounting systems. Accounting and Business Research, 27 (4), Chong, V.K. & Eggleton, I.R.C The decision-facilitating role of management accounting systems on managerial performance: The influence of locus of control and task uncertainty. Advances in Accounting, 20,
16 Chong, V.K Management accounting systems, task uncertainty and managerial performance: A research note. Accounting, Organizations and Society, 21(5), Chong, V.K., Eggleton, I.R.C. & Leong, M.K.C The impact of market competition and budgetary participation on performance and job satisfaction: a research note. The British Accounting Review, 37, Damanpour, F Organizational complexity and innovation: developing and testing multiple contingency models. Management Science, 42 (5), Damonte, L., Rompf, P., Bahl, R., and Domke, D Brand affiliation and property size effects on measures of performance in lodgings industry. Hospitality Research Journal. 20(3), Das, S.R. & Joshi, M.P Process innovativeness in technology services organizations: Roles of differentiation strategy, operational autonomy and risktaking propensity. Journal of Operations Management, 25(3), De Busk, G.K., Brown, R.M. & Killough, L.N Components and relative weights in utilization of dashboard measurement systems like the Balanced Scorecard. British Accounting Review, 35, Dent, J.F Strategy, organization and control: some possibilities for accounting research. Accounting, Organizations and Society, 15 (1/2), Deshpandé, R. & Farley, J.U Organizational culture, market orientation, innovativeness, and firm performance: an international research odyssey. International Journal of Research in Marketing, 21, Dess, G.G.and Davis, B Porter s generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal. 27: Emmanuel, C., Otley, D. and Merchant, K Accounting for Management Control. 2 nd Edition. Chapman and Hall: London. Ferris, K.R. and Haskins, M.E. (1988). Perspectives on accounting systems and human behaviour. Accounting, Auditing and Accountability Journal, Galbraith, J. R Designing Complex Organizations. Addison-Wesley: Reading, MA. Gordon, L.A. & Miller, D. (1976). A contingency framework for the design of accounting information systems. Accounting, Organizations and Society, 1 (1), Gordon, L.A. & Narayanan, V.K Management accounting systems, perceived environmental uncertainty and organization structure: An empirical investigation. Accounting, Organizations and Society, 9 (1), Govindarajan, V Appropriateness of accounting data in performance evaluation: an empirical examination of environment uncertainty as an intervening variable. Accounting, Organisation and Society. 9(2): Gul, F.A The effects of management accounting systems and environmental uncertainty on small business managers performance. Accounting and Business Research, 22 (85), Gul, F.A. and Chia, Y.M The effects of management accounting systems, perceived environmental uncertainty and decentralization on managerial performance: A test of three-way interaction. Accounting, Organizations and Society. 19(4/5):
17 Hair, J.F., Black, W.C., Babin, B.J., Anderson, R.E. and Tatham, R.L Multivariate Data Analysis. 6 th edition. Prentice Hall: New Jersey. Haron, S. and Ahmad, N.H The role of marketing in mobilizing deposits and financing in Islamic banking system. Journal of Islamic Banking and Finance, Hult, G.T.M., Hurley, R.F. & Knight, G.A Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33, Hussain, M., Gunasekaran, A. & Islam, M.M Implications of non-financial performance measures in Finnish banks. Managerial Auditing Journal, 17(8), Hussain, M.M Management Accounting Systems in Services: Empirical Evidence with Non-Financial Performance Measurement in Finnish, Swedish and Japanese Banks and other Financial Institutions. Universitas Wasaensis, Vaasa. International Federation of Accountants International Management Accounting Practice Statement (IMAP # 1): Management Accounting Concepts, Financial and Management Accounting Committee, March 1998, Ittner, C.D. and Larcker, D.F Are non-financial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research, 36, Supplement, Ittner, C.D., Larcker, D.F. & Randall, T Performance implications of strategic performance measurement in financial services firms. Accounting, Organizations and Society, 28, Khandwalla, P.N The effect of different types of competition on the use of management controls. Journal of Accounting Research, Autumn: Lal, M. & Hassel, L The joint impact of environmental uncertainty and tolerance of ambiguity on top managers perceptions of the usefulness of non-conventional management accounting information. Scandinavian. Journal of Management, 14 (3), Lissette, M.A The banking industry: Problems and possible solutions. The Journal of Bank Cost & Management Accounting, 10(1), Mia, L The role of MAS information in organizations: An empirical study. The British Accounting Review, 25(3), Mia, L. & Clarke, B Market competition, management accounting systems and business unit performance. Management Accounting Research, 10, Mia, L. & Patiar, A The use of management accounting systems in hotels: an exploratory study. Hospitality Management, 20, Mia, L The role of MAS information in organizations: An empirical study. The British Accounting Review, 25 (3), Mia, L. and Chenhall, R The usefulness of MAS functional differentiation and management effectiveness. Accounting, Organizations and Society. 19(1), Miles, RE and Snow, CC Organizational Strategy, Structure and Process. McGraw Hill: New York. Modell, S Management accounting and control in services: structural and behavioural perspectives. International Journal of Service Industry Management, 7(2),
18 Moores, K. & Yuen, S Management accounting systems and organizational configuration: a life-cycle perspective. Accounting, Organizations and Society, 26, Moriarty, S. (1979). Communication financial information through multidimensional graphics, Journal of Accounting Research, Nanni, A.J., Dixon, J. and Vollmann, T.E Integrated performance measurement: Management accounting to support the new manufacturing realities. Journal of Management Accounting Research, 4(Fall), Otley, D.T The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), Otley, D.T The control problem in public accounting firms: an empirical study of the impact of leadership style, Accounting, Organizations and Society, 20(5), Pennings, J.M. & Harianto, F The diffusion of technological innovation in the commercial banking industry. Strategic Management Journal, 13, Porter, M.E Competitive Advantage: Creating and Sustaining Superior Performance. The Free Press: New York. Rezaee, Z The relevance of managerial accounting concepts in banking industry. Journal of Performance Management. 18(2): Russell, R.D. and Russell, C.J An examination of the effects of organizational norms, organizational structure and environmental uncertainty on entrepreneurial strategy. Journal of Management, 18, Sekaran, U Research Methods for Business: A Skill Building Approach. 3 rd ed. John Wiley & Sons: New York. Shah, M.H., Braganza, A. & Morabito, V. (2007). A survey of critical success factors in e-banking: an organisational perspective. European Journal of Information Systems, 16(4), Shanmugam, B. & Guru, B.K Electronic Banking in Malaysia. Institut Bank-Bank Malaysia: Kuala Lumpur. Sharma, D.S The differential effect of environmental dimensionality, size, and structure on budget system characteristics in hotels. Management Accounting Research, 13, Stock, D. and Watson, C Human judgement accuracy:multidimensional graphics, and humans versus models. Journal of Accounting Research, Subramaniam, N. and Mia, L A note on work-related values, budget emphasis and managers organizational commitment. Management Accounting Research, 14, Tillema, S Towards an integrated contingency framework for MAS sophistication: Case studies on the scope of accounting instruments in Dutch power and gas companies. Management Accounting Research, 16, Zhu, K. & Kraemer, K.L E-commerce metrics for Net-enhanced organizations: Assessing the value of e-commerce to firm performance in the manufacturing sector. Information Systems Research, 13(3), Zhu, K., Kraemer, K.L., Xu, S. & Dedrick, J Information technology payoff in e- business environments: an international perspective on value creation of e- 18
19 business in the financial services industry. Journal of Management Information Systems, 21 (1),
EFFECTS OF ADVANCED MANUFACTURING TECHNOLOGY ADOPTION AND MARKET COMPETITION ON MANAGEMENT ACCOUNTING SYSTEM OF MANUFACTURING FIRMS IN MALAYSIA
EFFECTS OF ADVANCED MANUFACTURING TECHNOLOGY ADOPTION AND MARKET COMPETITION ON MANAGEMENT ACCOUNTING SYSTEM OF MANUFACTURING FIRMS IN MALAYSIA Siow Yung Ern Putra Business School esther_siow@yahoo.com
More informationTHE ROLE OF TIMELY PERFORMANCE MEASUREMENT AND MANAGEMENT SYSTEM IN IMPROVING FIRM'S PERFORMANCE
THE ROLE OF TIMELY PERFORMANCE MEASUREMENT AND MANAGEMENT SYSTEM IN IMPROVING FIRM'S PERFORMANCE ABSTRACT Dr. Ibrahim Ali Abushaiba 1 Dr. Mohamed Moftah Alfatiemy 2 Dr.Prof. Yuserrie Zainuddin 3 The performance
More informationA review of literature on contingency theory in managerial accounting
African Journal of Business Management Vol. 6(15), pp. 5159-5164, 18 April, 2012 Available online at http://www.academicjournals.org/ajbm DOI: 10.5897/AJBM11.2764 ISSN 1993-8233 2012 Academic Journals
More informationDifferentiation Strategy, Performance Measurement Systems and Organizational Performance: Evidence from Australia
INTERNATIONAL JOURNAL OF BUSINESS, 14(1), 2009 ISSN: 1083 4346 Differentiation Strategy, Performance Measurement Systems and Organizational Performance: Evidence from Australia X. Sarah Yang Spencer a,
More informationProcedia - Social and Behavioral Sciences 164 ( 2014 ) 384 390. Ishak Ramli a *, Denny Iskandar b
Available online at www.sciencedirect.com ScienceDirect Procedia - Social and Behavioral Sciences 164 ( 2014 ) 384 390 International Conference on Accounting Studies 2014, ICAS 2014, 18-19 August 2014,
More informationInternational Journal of Computer Networks and Communications Security
International Journal of Computer Networks and Communications Security VOL. 2, NO. 11, NOVEMBER 2014, 374 378 Available online at: www.ijcncs.org ISSN 2308-9830 The Role of Contingency Factors in the Implementation
More informationEVALUATION OF THE EFFECTIVENESS OF ACCOUNTING INFORMATION SYSTEMS
49 International Journal of Information Science and Technology EVALUATION OF THE EFFECTIVENESS OF ACCOUNTING INFORMATION SYSTEMS H. Sajady, Ph.D. M. Dastgir, Ph.D. Department of Economics and Social Sciences
More informationPREDICTING CHANGE IN MANAGEMENT ACCOUNTING SYSTEMS: THE EFFECTS OF COMPETITIVE STRATEGY Nelson Waweru, York University
PREDICTING CHANGE IN MANAGEMENT ACCOUNTING SYSTEMS: THE EFFECTS OF COMPETITIVE STRATEGY Nelson Waweru, York University ABSTRACT This study reports on a survey that investigated changes in management accounting
More informationEFFECTS OF CUSTOMER ORIENTATION, LEARNING ORIENTATION AND INNOVATIVENESS ON HOTEL PERFORMANCE - EVIDENCE FROM CLUJ COUNTY
EFFECTS OF CUSTOMER ORIENTATION, LEARNING ORIENTATION AND INNOVATIVENESS ON HOTEL PERFORMANCE - EVIDENCE FROM CLUJ COUNTY Stegerean Roxana, Petre Anamaria, Gavrea Corina Management Department, Faculty
More informationKittipat Laisasikorn Thammasat Business School. Nopadol Rompho Thammasat Business School
A Study of the Relationship Between a Successful Enterprise Risk Management System, a Performance Measurement System and the Financial Performance of Thai Listed Companies Kittipat Laisasikorn Thammasat
More informationThe Role of Sophisticated Accounting System in Strategy Management 1
The International Journal of Digital Accounting Research Vol. 4, N. 8, 2004, pp. 125-144 ISSN: 1577-8517 125 The Role of Sophisticated Accounting System in Strategy Management 1 David Naranjo-Gil. Pablo
More informationPerformance appraisal politics and employee turnover intention
Performance appraisal politics and employee turnover intention Rusli Ahmad Camelia Lemba Faculty of Cognitive Sciences and Human Development Universiti Malaysia Sarawak arusli@fcs.unimas.my Wan Khairuzzaman
More informationThe Role of Management Accounting Systems In Advanced Manufacturing Environment
Australian Journal of Basic and Applied Sciences, 5(9): 2196-2209, 2011 ISSN 1991-8178 The Role of Management Accounting Systems In Advanced Manufacturing Environment Kamisah Ismail and Che Ruhana Isa
More informationE-Commerce Usage in Hotel Industries Capabilities
International Journal of Business and Social Science Vol. 4 No. 14; November 2013 E-Commerce Usage in Hotel Industries Capabilities A. H. Mutia Sobihah Faculty of Business Management and Accountancy Gong
More informationManagement accounting systems design and company performance in Nigerian manufacturing companies: A contingency theory perspective
, Vol.14 NoII (2013) BritishJournal Publishing, Inc. 2013 http://www.bjournal.co.uk/bjass.aspx Management accounting systems design and company performance in Nigerian manufacturing companies: A contingency
More informationIJAIM 21,4. Ruzita Jusoh Department of Management Accounting & Taxation, University of Malaya, Kuala Lumpur, Malaysia, and
The current issue and full text archive of this journal is available at www.emeraldinsight.com/1834-7649.htm IJAIM 314 Received 23 February 2012 Revised 25 April 2012 30 June 2012 29 October 2012 23 November
More informationMediation of Computerized Accounting System (CAS) Adoption on Relationship Between Environmental Uncertainty and Organizational Performance
Journal of Modern Accounting and Auditing, ISSN 1548-6583 June 2013, Vol. 9, No. 6, 747-755 D DAVID PUBLISHING Mediation of Computerized Accounting System (CAS) Adoption on Relationship Between Environmental
More informationStrategic Management Accounting Practices in Croatia
Strategic Management Accounting Practices in Croatia Branka Ramljak, Professor and Vice Rector of the University of Split, Croatia Andrijana Rogošić, PhD, Faculty of Economics, University of Split, Croatia
More informationISBN Proceedings of 2010 International Conference on Business, Economics and Tourism Management (CBETM 2010)
ISBN 978-1-84626-026-1 Proceedings of 2010 International Conference on Business, Economics and Tourism Management (CBETM 2010) Singapore, 26-28 February, 2010 Factors Influencing Activity-Based Costing
More informationOrganizational Culture and the Use of Management Accounting Innovations in Thailand
Organizational Culture and the Use of Management Accounting Innovations in Thailand Wipa Chongruksut Institute of International Studies, Ramkhamhaeng University Ramkhamhaeng Road, Bangkok 10240, Thailand
More informationPredicting change in management accounting systems: a contingent approach
SECTION 3. General issues in management Nelson Waweru (Canada), Enrico Uliana (South Africa) Predicting change in management accounting systems: a contingent approach Abstract This study investigated the
More informationParticipation in Performance Measurement Systems and Level of Satisfaction
Participation in Performance Measurement Systems and Level of Satisfaction Majdy Zuriekat Assistant Professor of Accounting German Jordanian University Talal Abu-Ghazaleh Graduate School of Business Administration
More informationDeterminants of the Total Quality Management Implementation in SMEs in Iran (Case of Metal Industry)
International Journal of Business and Social Science Vol. 4 No. 16; December 2013 Determinants of the Total Quality Management Implementation in SMEs in Iran (Case of Metal Industry) Hamed Ramezani Planning
More informationCHAPTER-4 MANAGEMENT ACCOUNTING INFORMATION SYSTEM IN ORGANIZATIONS
CHAPTER-4 MANAGEMENT ACCOUNTING INFORMATION SYSTEM IN ORGANIZATIONS 4.1 Management Accounting Information System (MAIS) 4.1.1 What is management accounting information system? 4.1.2 Operational model and
More informationManagement accounting system effectiveness and goal achievement: evidence from automotive businesses in Thailand
Management accounting system effectiveness and goal achievement: evidence from automotive businesses in Thailand Pannarai Lata Phaprukbaramee Ussahawanitchakit Mahasarakham University, Thailand Keywords
More informationThe Power of Customer Relationship Management in Enhancing Product Quality and Customer Satisfaction
The Power of Customer Relationship Management in Enhancing Product Quality and Customer Satisfaction Arawati Agus 1 and Za faran Hassan 2+ 1 Graduate School of Business, Universiti Kebangsaan Malaysia,
More informationManagement Science Letters
Management Science Letters 4 (2014) 429 438 Contents lists available at GrowingScience Management Science Letters homepage: www.growingscience.com/msl Factors influencing the alignment of accounting information
More informationInfluence of Demographic Factors on Customers Perceptions towards CRM Practices among Banks
Influence of Demographic Factors on Customers Perceptions towards CRM Practices among Banks Zuliana Zulkifli, *Izah Mohd Tahir Faculty of Business Management and Accountancy, University Sultan Zainal Abidin,
More informationThe Evolution of Performance Measurement System (PMS) and Linkage to the Environmental Uncertainty and Strategy; a Review of Literature
The Evolution of Performance Measurement System (PMS) and Linkage to the Environmental Uncertainty and Strategy; a Review of Literature Anbalagan Krishnan, Lecturer for Accounting, School of Business,
More informationUSE OF ICT IN SMES MANAGEMENT WITHIN THE SECTOR OF SERVICES
USE OF ICT IN SMES MANAGEMENT WITHIN THE SECTOR OF SERVICES Plumb Ion Academy of Economic Studies Bucharest, Faculty of Management, 6 th Piata Romana RO 030173 Bucharest Romania, ionplumb@yahoo.com, +4021.319.19.00/287
More informationManagement Control Systems, Strategy and Performance: An Exploratory Analysis of Family and Non-family Firms in Chile.
Management Control Systems, Strategy and Performance: An Exploratory Analysis of Family and Non-family Firms in Chile. Moses Acquaah. Bryan School of Business and Economics, University of North Carolina-Greensboro.
More informationMEASURING THE IMPACT OF INVENTORY CONTROL PRACTICES: A CONCEPTUAL FRAMEWORK
MEASURING THE IMPACT OF INVENTORY CONTROL PRACTICES: A CONCEPTUAL FRAMEWORK Kamaruddin Radzuan 1, Abdul Aziz Othman 2, Herman Shah Anuar 3, Wan Nadzri Osman 4 1,2,3,4 School of Technology Management and
More informationAppreciation of Computerized Accounting System in Financial Institutions in Bangladesh
World Review of Business Research Vol. 1. No. 2. May 2011 Pp.1-9 Appreciation of Computerized Accounting System in Financial Institutions in Bangladesh Rehana Fowzia 1 and Mahmuda Nasrin 2 Along with the
More informationThe Impact of Affective Human Resources Management Practices on the Financial Performance of the Saudi Banks
327 The Impact of Affective Human Resources Management Practices on the Financial Performance of the Saudi Banks Abdullah Attia AL-Zahrani King Saud University azahrani@ksu.edu.sa Ahmad Aref Almazari*
More informationIntroduction. Research Problem. Larojan Chandrasegaran (1), Janaki Samuel Thevaruban (2)
Larojan Chandrasegaran (1), Janaki Samuel Thevaruban (2) Determining Factors on Applicability of the Computerized Accounting System in Financial Institutions in Sri Lanka (1) Department of Finance and
More informationSTRATEGIC PRIORITIES, MANAGEMENT CONTROL SYSTEMS, AND MANAGERIAL PERFORMANCE: AN EMPIRICAL STUDY. Submitted by. A thesis submitted in total fulfilment
STRATEGIC PRIORITIES, MANAGEMENT CONTROL SYSTEMS, AND MANAGERIAL PERFORMANCE: AN EMPIRICAL STUDY Submitted by John Stephen Sands, B.Bus GCUCGU, B. Bus USQ, M. Phil Grif A thesis submitted in total fulfilment
More informationDeterminants of Internet Entrepreneurship Intentions among Business School Students
Determinants of Internet Entrepreneurship Intentions among Business School Students Yu-Min Wang and Yi-Shuan Lin Abstract This study presents the findings of an empirical study to analyze factors affecting
More informationEvaluating the Relationship between Service Quality and Customer Satisfaction in the Australian Car Insurance Industry
2012 International Conference on Economics, Business Innovation IPEDR vol.38 (2012) (2012) IACSIT Press, Singapore Evaluating the Relationship between Service Quality and Customer Satisfaction in the Australian
More informationTHE USE OF PERFORMANCE MEASURES IN SMALL TO MEDIUM ENTERPRISES (SMEs) AN EXPLORATORY STUDY
THE USE OF PERFORMANCE MEASURES IN SMALL TO MEDIUM ENTERPRISES (SMEs) AN EXPLORATORY STUDY Brendan Phillips, Thomas Tan Tsu Wee and Tekle Shanka Curtin Business School Keywords: SMEs, performance measures,
More informationThe Influence of Marketing Mix and Customer Satisfaction on Customer Loyalty among Hijab Consumers
The Influence of Marketing Mix and Customer Satisfaction on Customer Loyalty among Hijab Consumers Norsyaheera Abd Wahab 1 and Lailatul Faizah Abu Hassan 2 1 Centre for Postgraduate and Professional Studies
More informationEntrepreneurship in a Transition Economy: The Impact of Environment on Entrepreneurial Orientation
140 Entrepreneurship in a Transition Economy: The Impact of Environment on Entrepreneurial Orientation Abstract Matilda Alexandrova 1 The paper intends to shed some light on the impact of business environment
More informationThe Roles of Market Competition and Advanced Manufacturing Technology in Predicting Management Accounting and Control Systems Change
Asia Pacific Management Review (2005) 10(6), 397-403 The Roles of Market Competition and Advanced Manufacturing Technology in Predicting Management Accounting and Control Systems Change Che Ruhana Isa
More informationDeterminants of Management Accounting Control System in Malaysian Manufacturing Companies
Asian Journal of Accounting and Governance 1: 79-104 (2010) ISSN 2180-3838 Determinants of Management Accounting Control System in Malaysian Manufacturing Companies TUAN ZAINUN TUAN MAT * University Teknologi
More informationMARKETING ASPECTS IN STRATEGIC MANAGEMENT ACCOUNTING
MARKETING ASPECTS IN STRATEGIC MANAGEMENT ACCOUNTING 739 MARKETING ASPECTS IN STRATEGIC MANAGEMENT ACCOUNTING Dario Dunković, PhD Van Dongen Group Osijek Đurđica Jurić, MSc RRiF College of Financial Management
More informationHow To Understand The Effect Of Information System Success On Employee Performance In Kedah
VOL. 4, NO. 2, March 205 ISSN 2307-2466 205. All rights reserved. Experiences with Information System for Employee Performance: A case of Royal Malaysia Custom Department (RMCD) ZuhdiAbd Zakaria, 2 Herman
More informationThe Influence of Soft and Hard TQM Factors on Knowledge Management: Perspective from Malaysia
2011 International Conference on Management and Service Science IPEDR vol.8 (2011) (2011) IACSIT Press, Singapore The Influence of Soft and Hard TQM Factors on Knowledge Management: Perspective from Malaysia
More informationMeasurement Frequency of Performance Indicators and Satisfaction on Corporate Performance: A Survey on Manufacturing Companies
European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2275 Issue 13 (2008) EuroJournals, Inc. 2008 http://www.eurojournalsn.com Measurement Frequency of Performance Indicators and
More informationA CRM Adoption Model for Malaysian Telecommunication and Finance Companies
A CRM Adoption Model for Malaysian Telecommunication and Finance Companies Maryam Chavoshi1 1 e-mail: mchavoshy@gmail.com Alex Tze Hiang Sim 2 e-mail: alex@utm.my Jee Mei Hee 3 e-mail: jmhee@utm.my Author(s)
More informationThe Usage of Social Network as a Marketing Tool: Malaysian Muslim Consumers Perspective
The Usage of Social Network as a Marketing Tool: Malaysian Muslim Consumers Perspective Abdullah Sarwar Department of Business Administration, International Islamic University Malaysia Ahasanul Haque Department
More informationMODERN MANAGEMENT ACCOUNTING PRACTICES IN MALAYSIA S SMALL MEDIUM INDUSTRIES
Modern Management Accounting Practices in Malaysia s Small Medium Industries 6 MODERN MANAGEMENT ACCOUNTING PRACTICES IN MALAYSIA S SMALL MEDIUM INDUSTRIES 105 MohaMed Fuad ahmad Mohd NorFiaN alifiah INTRODUCTION
More informationGJMBR-A Classification: JEL Code: O33, M41, O32, L22, L60 FOR Code: 150307, 150102
Global Journal of Management and Business Research Volume 11 Issue 9 Version 1.0 September 2011 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online
More informationTHE EFFECT OF ORGANIZATIONAL CULTURE ON E-COMMERCE ADOPTION
THE EFFECT OF ORGANIZATIONAL CULTURE ON E-COMMERCE ADOPTION David W. Nickels University of North Alabama, Box 5210 University of North Alabama Florence, AL 35632 Phone: (256) 765-4819 Fax: (256) 765-4811
More informationSupply-Chain Strategy and Performance: Mediating Effect of Supply-Chain Practices
Available at www.ictom.info www.sbm.itb.ac.id www.cob.uum.edu.my The 3rd International Conference on Technology and Operations Management Sustaining Competitiveness through Green Technology Management
More informationA Review of IT Outsourcing Trends in 2005: An Australian study
A Review of IT Outsourcing Trends in 2005: An Australian study Michael S Lane Department of Information Systems, Faculty of Business University of Southern Queensland Michael.Lane@usq.edu.au Glen Van der
More informationInfluence of Tactical Factors on ERP Projects Success
2011 3rd International Conference on Advanced Management Science IPEDR vol.19 (2011) (2011) IACSIT Press, Singapore Influence of Tactical Factors on ERP Projects Success Shahin Dezdar + Institute for International
More informationIMPACT OF SUPPLY CHAIN MANAGEMENT STRATEGIES ON COMPETITIVE ADVANTAGE IN MANUFACTURING COMPANIES OF KHUZESTAN PROVINCE
IMPACT OF SUPPLY CHAIN MANAGEMENT STRATEGIES ON COMPETITIVE ADVANTAGE IN MANUFACTURING COMPANIES OF KHUZESTAN PROVINCE Mohammad Ali Enayati Shiraz, Elham Ramezani 2 Department of Industrial Management,
More informationEvaluating the Performance of Accounting Information Systems in Jordanian Private Hospitals
Journal of Social Sciences 8 (1): 74-78, 2012 ISSN 1549-3652 2012 Science Publications Evaluating the Performance of Accounting Information Systems in Jordanian Private Hospitals Majed Alsharayri Department
More informationA Study on Customer Orientation as Mediator between Emotional Intelligence and Service Performance in Banks
International Journal of Business and Management Invention ISSN (Online): 2319 8028, ISSN (Print): 2319 801X Volume 2 Issue 5 ǁ May. 2013ǁ PP.60-66 A Study on Customer Orientation as Mediator between Emotional
More informationIMPLEMENTING A CUSTOMER RELATIONSHIP MANAGEMENT PROGRAMME IN AN EMERGING MARKET
IMPLEMENTING A CUSTOMER RELATIONSHIP MANAGEMENT PROGRAMME IN AN EMERGING MARKET Adele Berndt, Frikkie Herbst, and Lindie Roux 1 ABSTRACT Retail financial services in all markets, including emerging markets,
More informationThe Effectiveness of Ethics Program among Malaysian Companies
2011 2 nd International Conference on Economics, Business and Management IPEDR vol.22 (2011) (2011) IACSIT Press, Singapore The Effectiveness of Ethics Program among Malaysian Companies Rabiatul Alawiyah
More information*djafrifares@gmail.com
Information Management and Business Review Vol. 5, No. 12, pp. 584-590, Dec 2013 (ISSN 2220-3796) The Impact of Service Quality, Student Satisfaction, and University Reputation on Student Loyalty: A Case
More informationDeveloping and Validating Customer Relationship Management (CRM) Practices Construct
International Journal of Business and Behavioral Sciences Vol., No.; January 0 Developing and Validating Customer Relationship Management (CRM) Practices Construct Zuliana Zulkifli, *Izah Mohd Tahir Faculty
More informationManagement Accounting Practices: A Comparative Analysis of Manufacturing and Service Industries
ASA University Review, Vol. 4 No. 1, January June, 2010 Management Accounting Practices: A Comparative Analysis of Manufacturing and Service Industries Farjana Yeshmin * Rehana Fowzia * Abstract The study
More informationEffects of Enterprise Technology on Supply Chain Collaboration and Performance
Effects of Enterprise Technology on Supply Chain Collaboration and Performance Ling Li Department of Information Technology and Decision Sciences Old Dominion University Norfolk, VA, USA Abstract. Supply
More informationExploring the Drivers of E-Commerce through the Application of Structural Equation Modeling
Exploring the Drivers of E-Commerce through the Application of Structural Equation Modeling Andre F.G. Castro, Raquel F.Ch. Meneses and Maria R.A. Moreira Faculty of Economics, Universidade do Porto R.Dr.
More informationThe Impact of Management Information Systems on the Performance of Governmental Organizations- Study at Jordanian Ministry of Planning
The Impact of Management Information Systems on the Performance of Governmental Organizations- Study at Jordanian Ministry of Planning Dr. Shehadeh M.A.AL-Gharaibeh Assistant prof. Business Administration
More informationJOURNAL OF INTERNATIONAL ACADEMIC RESEARCH FOR MULTIDISCIPLINARY Impact Factor 1.393, ISSN: 2320-5083, Volume 2, Issue 6, July 2014
FEATURES DETERMINING THE SUCCESS OF E-CRM AN EMPIRICAL INVESTIGATION IN BANKS DR.S.KAVITHA* *Professor & Head/MBA, Vivekanandha Institute of Information & Management Studies, Tiruchengode, Namakkal, Tamilnadu,
More informationThe Impact of Information Technology on Knowledge Management Practices
International Journal of Business, Humanities and Technology Vol. 2 No. 7; December 212 The Impact of Information Technology on Knowledge Management Practices Kamel Mohamad Hawajreh & Abdel-Aziz Ahmad
More informationThe Impact of Changes in Environment and AMT on Management Accounting Practices and Organizational Strategy, Structure and Performance
The Impact of Changes in Environment and AMT on Management Accounting Practices and Organizational Strategy, Structure and Performance Tuan Zainun Tuan Mat* Malcolm Smith** Abstract This study investigates
More informationModerator and Mediator Analysis
Moderator and Mediator Analysis Seminar General Statistics Marijtje van Duijn October 8, Overview What is moderation and mediation? What is their relation to statistical concepts? Example(s) October 8,
More informationThe Influence of Trust and Commitment on Customer Relationship Management Performance in Mobile Phone Services
2011 3rd International Conference on Information and Financial Engineering IPEDR vol.12 (2011) (2011) IACSIT Press, Singapore The Influence of Trust and Commitment on Customer Relationship Management Performance
More informationTotal Quality Management in the Malaysian Automobile Industry
Total Quality Management in the Malaysian Automobile Industry Ismah Osman Faculty of Business Management, Universiti Teknologi MARA 40450, Shah Alam, Selangor, Malaysia Tel: 60-3-554-4446 E-mail: ismah817@salam.uitm.edu.my
More informationStrategic Planning and Business Performance: A Study of SMEs in Malaysia
Strategic Planning and Business Performance: A Study of SMEs in Malaysia Wong Kee-Luen, Kuek Thiam-Yong and Ong Seng-Fook There are many small and medium-sized manufacturing enterprises operating in Malaysia.
More informationExploring the Antecedents of Electronic Service Acceptance: Evidence from Internet Securities Trading
Exploring the Antecedents of Electronic Service Acceptance: Evidence from Internet Securities Trading Siriluck Rotchanakitumnuai Department of Management Information Systems Faculty of Commerce and Accountancy
More informationRanking Barriers to Implementing Marketing Plans in the Food Industry
Ranking Barriers to Implementing Marketing Plans in the Food Industry Shahram Gilaninia 1, Seyed Yahya Seyed Danesh 2, Mina Abroofarakh 3* 1 Department of Industrial Management, Rasht Branch, Islamic Azad
More informationThe Diffusion of Management Accounting Practices in Iranian Manufacturing Companies
Middle-East Journal of Scientific Research 23 (3): 394-404, 2015 ISSN 1990-9233 IDOSI Publications, 2015 DOI: 10.5829/idosi.mejsr.2015.23.03.22079 The Diffusion of Management Accounting Practices in Iranian
More informationTHE RELATIONSHIP BETWEEN CHANNEL METRICS, STRATEGY AND MARKETING PERFORMANCE. Michael J. Valos Deakin University. Chris Dubelaar Monash University
THE RELATIONSHIP BETWEEN CHANNEL METRICS, STRATEGY AND MARKETING PERFORMANCE Michael J. Valos Deakin University Chris Dubelaar Monash University Track: Conceptual Papers / Marketing Theory Abstract The
More informationMobile Stock Trading (MST) and its Social Impact: A Case Study in Hong Kong
Mobile Stock Trading (MST) and its Social Impact: A Case Study in Hong Kong K. M. Sam 1, C. R. Chatwin 2, I. C. Ma 3 1 Department of Accounting and Information Management, University of Macau, Macau, China
More informationSarah Siambi 1, Bichanga Walter Okibo 2 ISSN 2349-7807
Determinants of Strategic Supply Chain Management in Enhancing Organization Performance: A Study of Eldoret Water and Sanitation Company (ELDOWAS), Kenya Sarah Siambi 1, Bichanga Walter Okibo 2 1 Jomo
More informationAccounting Information Systems Alignment and SMEs Performance: A Literature Review
2015, Vol. 4(2), pp.58 70. ISSN 2304 1366 http://www.ijmess.com Accounting Information Systems Alignment and Performance: A Literature Review Dekeng Setyo Budiarto * Faculty of Economics, PGRI University,
More informationImpact of Supply Chains Agility on Customer Satisfaction
2010 International Conference on E-business, Management and Economics IPEDR vol.3 (2011) (2011) IACSIT Press, Hong Kong Impact of Supply Chains Agility on Customer Satisfaction Dr. Akhilesh Barve Assistant
More informationANALYSIS OF USER ACCEPTANCE OF A NETWORK MONITORING SYSTEM WITH A FOCUS ON ICT TEACHERS
ANALYSIS OF USER ACCEPTANCE OF A NETWORK MONITORING SYSTEM WITH A FOCUS ON ICT TEACHERS Siti Rahayu Abdul Aziz 1, Mohamad Ibrahim 2, and Suhaimi Sauti 3 1 Universiti Teknologi MARA, Malaysia, rahayu@fskm.uitm.edu.my
More informationRelationship Quality as Predictor of B2B Customer Loyalty. Shaimaa S. B. Ahmed Doma
Relationship Quality as Predictor of B2B Customer Loyalty Shaimaa S. B. Ahmed Doma Faculty of Commerce, Business Administration Department, Alexandria University Email: Shaimaa_ahmed24@yahoo.com Abstract
More informationSUCCESSFUL EXECUTION OF PRODUCT DEVELOPMENT PROJECTS: THE EFFECTS OF PROJECT MANAGEMENT FORMALITY, AUTONOMY AND RESOURCE FLEXIBILITY
SUCCESSFUL EXECUTION OF PRODUCT DEVELOPMENT PROJECTS: THE EFFECTS OF PROJECT MANAGEMENT FORMALITY, AUTONOMY AND RESOURCE FLEXIBILITY MOHAN V. TATIKONDA Kenan-Flagler Business School University of North
More informationChapter 3 Local Marketing in Practice
Chapter 3 Local Marketing in Practice 3.1 Introduction In this chapter, we examine how local marketing is applied in Dutch supermarkets. We describe the research design in Section 3.1 and present the results
More informationTHE OPEN UNIVERSITY OF TANZANIA FACULTY OF BUSINESS MANAGEMENT OME 212: BUSINESS ENVIRONMENT AND STRATEGIES COURSE OUTLINE
THE OPEN UNIVERSITY OF TANZANIA FACULTY OF BUSINESS MANAGEMENT OME 212: BUSINESS ENVIRONMENT AND STRATEGIES COURSE OUTLINE 2010 1 INTRODUCTION This course focuses on the external and internal environment
More informationABSTRACT. Keywords: Business strategy; Ownership patterns, Contingency theory, Management accounting innovations; Risk management.
1 The Influence of Business Strategies and Ownership on Management Accounting Innovations and Risk Management Techniques: An Empirical Analysis in Large Manufacturing Companies in Italy ABSTRACT Purpose
More informationImpact of ECRM on the Create Competitive Advantage in Hotels of Sarein
Impact of ECRM on the Create Competitive Advantage in Hotels of Sarein Shahram GilaniNia Department of Industrial Management, Islamic Azad University, Rasht Branch, Rasht, Iran Sirous Balaei Department
More informationThe impact of firm characteristics on management accounting practices: A UK-based empirical analysis
Abdel-Kader, M. and Luther, R. (2008), The impact of firm characteristics on management accounting practices: A UK-based empirical analysis, British Accounting Review, Forthcoming. doi: 10.1016/j.bar.2007.11.003.
More informationJ. Appl. Environ. Biol. Sci., 5(5)220-226, 2015 2015, TextRoad Publication
2015, TextRoad Publication ISSN: 2090-4274 Journal of Applied Environmental and Biological Sciences www.textroad.com Evaluation of the Impact of Change Management Dimensions on Increasing Organizational
More informationA conceptual paper on factors influencing Financial Institutions on lending technologies to technology-based SMEs in the northern region of Malaysia
A conceptual paper on factors influencing Financial Institutions on lending technologies to technology-based SMEs in the northern region of Malaysia Wan Sallha Binti Yusoff & Chuthamas Chittithaworn School
More informationFormal and informal feedback in management accounting
Hanna Pitkänen Turku School of Economics, Finland Kari Lukka Turku School of Economics, Finland Formal and informal feedback in management accounting Taking a look beyond the balanced scorecard Research
More informationSTRATEGIC COST MANAGEMENT ACCOUNTING INSTRUMENTS AND THEIR USAGE IN ALBANIAN COMPANIES ABSTRACT
STRATEGIC COST MANAGEMENT ACCOUNTING INSTRUMENTS AND THEIR USAGE IN ALBANIAN COMPANIES Marsel Sulanjaku Lecturer at A.Xhuvani University ALBANIA Ali Shingjergji Lecturer at A.Xhuvani University ALBANIA
More informationTurnover on Information Security Professionals: Findings from Korea
HyeWon Yoo, TaeSung Kim 169 Turnover on Information Security Professionals: Findings from Korea HyeWon Yoo *, TaeSung Kim Department of Management Information Systems College of Business, Chungbuk National
More informationFacilitation of Human Resource Information Systems on Performance of Public Sector in Jordan.
RESEARCH ARTICLE OPEN ACCESS Facilitation of Human Resource Information Systems on Performance of Public Sector in. Fawzi Hasan Altaany Irbid National University, Faculty of Administrative and Financial
More informationKeywords: ERP, Pre-implementation decisions, Misfit, Implementation risk. 1. Introduction
The Relationship between Pre-Implementation Decisions and Implementation Risks in ERP Projects A Survey on Taiwan s Manufacturing Firms C.-Y. Ho and Y.-M. Lin Department of Information Management National
More informationThe Impact of Business Environment on the Survival of Small Scale Businesses in Nigeria. K. Agbolade Obasan
Int. J. Manag. Bus. Res., 4 (3), 165-170, Summer 2014 IAU The Impact of Business Environment on the Survival of Small Scale Businesses in Nigeria K. Agbolade Obasan Department of Business Administration,
More informationIMPACT OF JOB CHARACTERISTICS ON JOB SATISFACTION AMONG ERP SYSTEM USERS
IMPACT OF JOB CHARACTERISTICS ON JOB SATISFACTION AMONG ERP SYSTEM USERS S.Lakshmi 1 * and M.R.Vanithmani 2# 1. School of Management, Sri Krishna College Of Engineering And Technology, Coimbatore, Tamil
More informationAccounting Information Management and Performance of Small Business Enterprises in Mbale Municipality
International Journal of Empirical Finance Vol. 4, No. 1, 2015, 53-58 Accounting Information Management and Performance of Small Business Enterprises in Mbale Municipality Eric Mabonga 1, Maena Daniel
More informationin nigerian companies.
Information Management 167 in nigerian companies. Idris, Adekunle. A. Abstract: Keywords: Relationship Marketing, Customer loyalty, Customer Service, Relationship Marketing Strategy and Nigeria. Introduction
More information