In the framework of contingency theory, this paper aims to study the contextual variables that influence the variety of the contents of a performance measurement system, specifically the use of non-financial indicators in Moroccan public institutions and enterprises (MPIE).
Aiming to study the factors which influence the use of financial and non-financial indicators within MPIEs, the authors attempted to identify all performance indicators used by the MPIEs in the sample. They selected 23 MPIEs with an industrial and commercial character and analyzed their reports for the period from 2010 to 2015. To evaluate the variety of performance indicators within these organizations, they used the multi-dimensional definition of performance recommended by Kaplan and Norton (1998) and used linear regressions to explain their relationship with the contextual variables.
Three hypotheses were developed regarding these contingency factors, predicting a positive relationship between the age, the size and the competitive environment of the organization, on one hand, and the use of non-financial indicators on the other hand. Following the study of MPIEs, the authors found that these organizations normally use financial indicators. However, the use of non-financial indicators is influenced by the age of the organization alone.
The scientific contribution of this paper is twofold: first, the authors seek to fill the gap in studies of performance measurement systems for MPIEs; second, they wish to enrich the scientific literature for underdeveloped countries which suffer from lack of data. Its managerial contribution is also dual: first, the authors aim to provide managers of MPIEs with a clearer understanding of non-financial measures that fully address the different management needs of their organizations; second, they encourage the government control using non-financial aspects alongside financial aspects.
Ibrahimi, M. and Naym, S. (2019), "The contingency of performance measurement systems in Moroccan public institutions and enterprises", Meditari Accountancy Research, Vol. 27 No. 4, pp. 613-632. https://doi.org/10.1108/MEDAR-05-2018-0336
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