Competition, non-financial measures and the effectiveness of management control system
This paper reports the results of an empirical study examining the relationship between the emphasis on non-financial measures and two other variables; the intensity of competition and the effectiveness of a management control system, in a manufacturing company. Two important issues focused in the s...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | en |
| Published: |
Universiti Utara Malaysia
2001
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/430/1/Mohd_Yusoff_Ibrahim.pdf https://repo.uum.edu.my/id/eprint/430/ http://ijms.uum.edu.my |
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| Summary: | This paper reports the results of an empirical study examining the relationship between the emphasis on non-financial measures and two other variables; the intensity of competition and the effectiveness of a management control system, in a manufacturing company. Two important issues focused in the study are: does competition compel managers to utilize more non-financial measures in decision making and is the emphasis given to non-financial measures worthwhile? Data from 105 manufacturing companies throughout Malaysia were analyzed using correlation and regression analysis. The results of both analyses indicate that the emphasis given to non-financial measures in decision making has a positive correlation with the effectiveness of a management control system and secondly, the intensity of competition faced by an organization is positively correlated with the emphasis on non-financial indicators. Descriptive analysis was also performed to evaluate the distribution of emphasis on non-financial measures by the age, location, ownership, size of an organization and its industry. |
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