The roles of degree of competition and types of business strategies in adopting multiple performance measurement practices

some reflections from bangladesh

Habib Uz Zaman Khan, Rafiuddin Ahmed, Abdel Karim Halabi

    Research output: Chapter in Book/Report/Conference proceedingChapter

    3 Citations (Scopus)

    Abstract

    Aim-This empirical study explores the association between competition, business strategy, and the uses of a multiple performance measurement system in Bangladesh manufacturing firms. Design/methodology-The study uses a questionnaire survey of 50 manufacturing companies. Data were analyzed using multiple regression analysis and other descriptive statistics. Findings-The results suggest that greater emphasis on multiple measures for performance evaluation is associated with businesses that are facing high competition. The practices of multiple performance measures are also significantly related to the types of business strategy being followed. Specifically, firms pursuing a prospector strategy have relied more on multiple performance measures to rate business performance than the firms pursuing a defender strategy. Practical implications-The article notes that the designers of performance measurement systems need to consider contingent factors that affect an organizations' control system. Originality/value-Substantiating the connection between contingent variables and the use of multiple performance measures in manufacturing firms facilitate a better acceptance of firms' tendency toward new measurement tools. The study contributes to the performance measurement and contingency literature since it presents empirical evidence of the state of multiple performance measures with organizational contingent variables using a developing country's manufacturing sector data.

    Original languageEnglish
    Title of host publicationResearch in Accounting in Emerging Economies
    Pages201-232
    Number of pages32
    Volume10
    DOIs
    Publication statusPublished - 2010

    Publication series

    NameResearch in Accounting in Emerging Economies
    Volume10
    ISSN (Print)14793563

    Keywords

    • Bangladesh
    • Firms' strategy
    • Manufacturing sector
    • Market competition
    • Multiple performance measures

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