The significant of business strategy in improving organizational performance

Yuliansyah Yuliansyah (Accounting Department, University of Lampung, Lampung, Indonesia)
Bruce Gurd (School of Management, University of South Australia, Adelaide, Australia)
Nafsiah Mohamed (Accounting Research Institute and Faculty of Accountancy, University Teknologi MARA, Shah Alam, Malaysia)

Humanomics

ISSN: 0828-8666

Publication date: 13 February 2017

Abstract

Purpose

This research aims to investigate the extent to which business strategy mediates the relationship between reliance on integrative strategic performance measurement (RISPM) and organisational performance.

Design/methodology/approach

A self-administered survey of 157 managers in Indonesian financial institutions was used to test direct and indirect effects among the hypothesised variables.

Findings

The findings indicate that business strategy has a full mediating effect on the relationship between RISPM and organisational performance.

Originality/value

This study indicates that performance measurement systems should be designed in conjunction with business strategies to obtain superior performance. More specifically, in the Indonesian financial institutions, applying a differentiation strategy is found to be most effective in gaining competitive advantage and superior performance.

Keywords

Citation

Yuliansyah, Y., Gurd, B. and Mohamed, N. (2017), "The significant of business strategy in improving organizational performance", Humanomics, Vol. 33 No. 1, pp. 56-74. https://doi.org/10.1108/H-06-2016-0049

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Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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