Financial and Non-Financial Performance: The Influence of Quality of Information System Information, Corporate Environmental Integration, Product Innovation, and Product Quality

Abstract

Issues relating to the financial and non-financial performance of firms are attracting considerable research attention. Four specific factors are focused on this paper, namely quality of information system (IS) information, corporate environmental integration, product innovation, and product quality to investigate the extent to which these variables influence financial and non-financial performance. All four independent variables were found to enhance the performance assessed in non-financial terms. In contrast, the results show that product innovation alone influences financial performance. The findings of this study suggest that the efficacy of these factors may be more effectively assessed by evaluating their impact on performance measured in non-financial terms, thereby suggesting that the inclusion of non-financial measures in performance evaluation models should enhance control system functioning.

Citation

Dunk, A.S. (2005), "Financial and Non-Financial Performance: The Influence of Quality of Information System Information, Corporate Environmental Integration, Product Innovation, and Product Quality", Epstein, M.J. and Lee, J.Y. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 91-114. https://doi.org/10.1016/S1474-7871(05)14004-0