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11 – 20 of over 15000To study the nature of management accounting performance measures in the Financial Services Industry (FSI). The nature of Performance Measurement (PM), specially non‐financial PM…
Abstract
Purpose
To study the nature of management accounting performance measures in the Financial Services Industry (FSI). The nature of Performance Measurement (PM), specially non‐financial PM in FSI (service “shop”) has not been explored before.
Design/methodology/approach
This exploratory multiple case study consists of survey, interviews with questionnaire, individuals' (senior management and executives) interviews, collecting primary and secondary sources of information as well as literature surveys.
Findings
The results of this study demonstrate that the actual practices of the recent trends of management accounting in non‐financial PM are negligible in the studied financial institutions, and management of studied banks paying more attention to improve and measure financial performance than that to non‐financial performance for different reasons that affect the function/operation of FSI.
Research limitations/implications
The field study is being conducted without a conceptual/theoretical framework. An explanatory case study with particular theoretical framework/model could make possible to discuss the factors that affect non‐financial PM in this particular industry. Moreover, a comparative study with manufacturing industry would make the research results more robust.
Practical implications
A stable economic condition and competition that would increase the need and importance of non‐financial PM in FSI as well as in other services (and even in manufacturing industries).
Originality/value
This paper explores the nature of management accounting PM particularly in FSI.
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Therese A. Joiner, X. Sarah Yang Spencer and Suzanne Salmon
Against a background of a customization imperative embraced by manufacturing firms in industrialised nations and the concomitant call for more balanced performance measurement…
Abstract
Purpose
Against a background of a customization imperative embraced by manufacturing firms in industrialised nations and the concomitant call for more balanced performance measurement systems (PMS), this study seeks to examine the mediating role of both non‐financial and financial performance measures in the relationship between a firm's strategic orientation of flexible manufacturing and organisational performance.
Design/methodology/approach
A path‐analytical model is adopted using questionnaire data from 84 Australian manufacturing firms.
Findings
The results indicate that, first, firms emphasising a flexible manufacturing strategy utilise non‐financial as well as financial performance measures; second, these performance measures are associated with higher organisational performance; and third, there is a positive association between a firm's strategic emphasis on flexible manufacturing and organisation performance via non‐financial and financial performance measures.
Practical implications
While there is agreement on the beneficial role of non‐financial performance measures in supporting strategic priorities associated with customization strategies, equivocal research results have emerged on the role of financial performance measures in this context. The study underscores the importance of both non‐financial and financial performance measures in this context.
Originality/value
The paper reinstates the value of financial performance measures for firms pursuing customization type strategies and adds to one's knowledge of PMSs by exploring the intervening role of such systems in linking flexible manufacturing strategy to organisation performance.
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Gianluca Vitale, Sebastiano Cupertino and Angelo Riccaboni
Focusing on the Agri-Food and Beverage sector, the paper investigates the direct effect of worldwide mandatory non-financial disclosure on several financial dimensions as well as…
Abstract
Purpose
Focusing on the Agri-Food and Beverage sector, the paper investigates the direct effect of worldwide mandatory non-financial disclosure on several financial dimensions as well as its moderating effects on the relationship between sustainability and financial performance.
Design/methodology/approach
The authors performed fixed-effect regressions on a sample of 180 global listed companies, considering a period of eight years. The authors also tested the moderating effects of non-financial disclosure regulation on the relationship between sustainability and financial performance.
Findings
The authors found a positive direct impact of mandatory non-financial disclosure on Operating Return on Asset, Return on Equity and Return on Sales. The analysis also highlighted the negative moderating effects of non-financial reporting regulation on the relationship between sustainability issues and financial performance. As for the Cost of Debt, the authors found mixed results.
Research limitations/implications
This study considers a short-term perspective focusing on a limited sample composed of companies playing a key role in the global agri-food system.
Practical implications
The paper identifies which financial performance dimensions are positively or negatively affected by mandatory non-financial disclosure. Accordingly, managers can rearrange corporate activities to deal with further reporting normative requirements concurrently preserving financial performances and fostering corporate sustainability.
Social implications
This study recommends fostering mandatory non-financial disclosure to increase corporate transparency fostering the sustainability transition of the Agri-Food and Beverage industry.
Originality/value
The paper highlights global mandatory non-financial disclosure effects on financial performance considering a sector that is cross-cutting impactful on plural sustainability issues.
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Rosamartina Schena, Angeloantonio Russo and Jonatan Pinkse
The purpose of this study is to extend existing knowledge in corporate sustainability (CS) and digitalization literature. Innovation strategies (namely, exploration, exploitation…
Abstract
Purpose
The purpose of this study is to extend existing knowledge in corporate sustainability (CS) and digitalization literature. Innovation strategies (namely, exploration, exploitation and ambidexterity) are used to identify an innovative employee domain that influences a firm’s non-financial performance. Digital reputation – i.e. the set of stakeholders’ sentiments toward the company’s digital footprint – is observed as a moderating variable able to explain where and when the innovative employee domain impacts the non-financial performance.
Design/methodology/approach
Using a sample of firms listed on the Fortune 500 list in the period 2015–2018, this study pursued both a qualitative and quantitative analysis. First, content analysis is carried out through a non-financial report-based operational model to operationalize the innovative domain. Second, a regression and moderator analysis are conducted on optimized panel data.
Findings
Consistent with previous literature, the results show that the employee domain positively impacts a firm’s non-financial performance. It was found that digital reputation operates as a moderator in this relationship.
Originality/value
This study contributes to the theoretical debate on CS by introducing a new concept relevant to an employee domain of exploration, exploitation and ambidexterity. It enriches the innovation debate by providing a new perspective on how firms can balance exploratory and exploitative innovation strategies in the employee domain to enhance non-financial performance. Finally, it provides a novel definition of digital reputation.
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Sebastiano Cupertino, Gianluca Vitale and Pasquale Ruggiero
This paper investigates whether and how Directive 2014/95/EU affects financial performance as well as its moderation effect on the relationship between financial and non-financial…
Abstract
Purpose
This paper investigates whether and how Directive 2014/95/EU affects financial performance as well as its moderation effect on the relationship between financial and non-financial performance, involving different stakeholders' perspectives.
Design/methodology/approach
We adopted the panel data approach to perform random effects regression analysis on a sample of 435 European listed non-financial companies, considering a timeframe of six years. Furthermore, the moderation effect of the Directive 2014/95/EU on the relationship between financial and non-financial performance has been tested.
Findings
NFD regulation negatively affects firms' operating profitability and shareholder value while produces no effects on debtholders' returns. Nevertheless, the Directive 2014/95/EU has general positive moderating effects on the relationship between non-financial and financial performance, mitigating the direct costs induced by pursuing non-financial performance.
Research limitations/implications
Shifting from mimetic to coercive isomorphism caused a strengthening of the complementarity between financial and non-financial performance dimensions, extending the concept of performance itself. The analysis carried out is limited to a short-term timeframe and on non-financial companies subject to the Directive 2014/95/EU.
Practical implications
The paper highlights trade-offs between the costs induced by non-financial activities and the benefits of being compliant with the non-financial disclosure (NFD) regulation, supporting managers in allocating business resources.
Originality/value
This paper is among the first that investigates the impact of mandatory NFD on the relationship between non-financial and financial performance. It is also one of the earliest in finding some pieces of evidence on the direct impact of Directive 2014/95/EU on EU companies' financial performance.
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This paper aims to analyze the influence of the importance of measures in the performance measurement systems (non-financial and financial) on managerial performance, with…
Abstract
Purpose
This paper aims to analyze the influence of the importance of measures in the performance measurement systems (non-financial and financial) on managerial performance, with interpersonal trust acting as a mediating variable.
Design/methodology/approach
The research was conducted at the University of Mulawarman by using a questionnaire among students who were the object of the research. Partial least squares were conducted along with Sobel’s test as the mediation test.
Findings
Interpersonal trust is the mediation effect between financial performance on managerial performance. The positive-marked coefficient indicates that higher financial performance will result in higher managerial performance if it is mediated by interpersonal trust that is also higher. Thus, interpersonal trust acts as a mediation variable of the relationship between financial performance and managerial performance.
Practical implications
The government should consider formulating a policy that will improve trust among managers, stakeholders and the public.
Social implications
The implications for managers include: an increase in interpersonal trust by improving the competence, integrity, reliability, openness and honesty and satisfaction in work.
Originality/value
Location of this study is University of Mulawarman, Samarinda, with student being the object of the study. This is the original of location of study means there has been no previous study research in the same location and of the same model. Originality is also shown in the investigation of interpersonal trust as the mediation variable in relationship between financial performance and non-financial performance on managerial performance.
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Tomislav Hernaus, Mirjana Pejić Bach and Vesna Bosilj Vukšić
The purpose of this paper is to examine the way strategic approach to business process management (BPM) impacts organizational performance, both its financial and non‐financial…
Abstract
Purpose
The purpose of this paper is to examine the way strategic approach to business process management (BPM) impacts organizational performance, both its financial and non‐financial aspects, using empirical data from Croatian firms. The impact of strategic approach to BPM on process performance measurement (PPM) is examined as well.
Design/methodology/approach
A questionnaire survey was conducted on a sample of 194 manufacturing and service firms in Croatia and propositions were tested using a structural equation model with SAS software.
Findings
The results suggest that PPM practice is positively related to strategic approach to BPM. The impact of PPM on non‐financial performance has been found, as well as the impact of non‐financial performance on financial performance, thus indicating an indirect influence of PPM on financial performance.
Originality/value
The paper extends the previous research that exclusively investigated impact of BPM to organizational performance. The authors extended results of previous research and found that strategic approach to BPM is an important push factor for implementation of PPM, and that PPM is an important link between BPM and improved organizational performance.
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Anderson Betti Frare and Chris Akroyd
The purpose of this paper is to examine the effects of performance management (PM) practices on in-bound open innovation (OI) and out-bound OI. To do this, the authors examine the…
Abstract
Purpose
The purpose of this paper is to examine the effects of performance management (PM) practices on in-bound open innovation (OI) and out-bound OI. To do this, the authors examine the organizational effectiveness as well as the non-financial and financial performance of Brazilian startups that have had recent OI relationships with larger companies.
Design/methodology/approach
Using data collected from 103 Brazilian startups, the hypotheses were tested via partial least squares–structural equation modeling (PLS-SEM). An additional analysis was performed using fuzzy-set qualitative comparative analysis (fsQCA).
Findings
The findings show that PM practices orchestrate in-bound OI and out-bound OI; however, only in-bound OI promotes organizational effectiveness in Brazilian startups. Organizational effectiveness results in good non-financial performance, which in turn improves financial performance. PM practices have an indirect effect on financial performance from the serial mediation of in-bound OI, organizational effectiveness and non-financial performance. Moreover, several combinations of conditions lead to high levels of organizational effectiveness, non-financial performance and financial performance.
Originality/value
This study provides new evidence and insights from an emerging market on the antecedents and consequences of startups' OI adoption.
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The purpose of this paper is to present the results of a survey study on quality performance measurement practices in the Turkish top 500 manufacturing companies. The study…
Abstract
Purpose
The purpose of this paper is to present the results of a survey study on quality performance measurement practices in the Turkish top 500 manufacturing companies. The study evaluates both financial and non‐financial aspects of quality performance measures in Turkish manufacturing companies.
Design/methodology/approach
The methodology of the study was a postal questionnaire survey. The survey was conducted with the top 500 industrial enterprises in Turkey specified by the Istanbul Chamber of Industry (ICI) for the year 2005. These firms are selected and ranked by ICI according to production‐based sales.
Findings
Two major findings of the study are: Turkish manufacturing companies utilize non‐financial measures more frequently than financial measures; and Turkish managers perceive non‐financial measures to be more effective than financial measures.
Research limitations/implications
The sample is restricted to the top 500 industrial enterprises in Turkey. As the data in this study were collected from the manufacturing companies, the findings should not be generalized to other sectors.
Originality/value
The study is unique in reflecting the general practices and perceptions of manufacturing companies on quality performance measures across Turkey.
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Wagdy M. Abdallah and Majbour Alnamri
The purpose of this paper is to investigate the use of financial and non-financial performance measurement practices, including the use of the balanced scorecard (BSC) and the…
Abstract
Purpose
The purpose of this paper is to investigate the use of financial and non-financial performance measurement practices, including the use of the balanced scorecard (BSC) and the impact of the cultural values on the use of performance measurement systems (PMSs), in multinational companies (MNCs) operating in the Middle East with a special attention to the Saudi Arabian subsidiaries.
Design/methodology/approach
Data were collected using a survey mailed to 180 randomly selected Saudi manufacturing subsidiaries in different industrial cities to collect data on their PMSs including the use of the BSC.
Findings
Financial measures are more widely used by most of the companies included in the sample due to the fact they are common, well known, and the most familiar performance measures in the business practice and they are more standardized measures which can be easily understood, implemented, and quantified. Moreover, the use of the non-financial measures was at a very low rate compared with the use of financial measures. The reasons were the difficulty in finding objective measures of the effect of social factors and the avoidance of any disclosure of social problems that are existed in the society.
Research limitations/implications
Several variables were not included in this study such as corporate culture, use of information technology, the use of mass number of expatriates in the KSA with completely different cultural values, and several other environmental factors, which might have a significant impact on the choice of multiple performance measures.
Practical implications
From a practical standpoint, this study demonstrates that increasing levels of external environmental factors and exposure to American best practices could act as forces to adapt more updated and sophisticated PMSs in the Middle East. Moreover, it will contribute to the knowledge of PMSs in the emerging countries, particularly in Middle East countries.
Social implications
Social variables have significant impact on the productivity of employees and they should be incorporated into the performance indictors in objective and practical models.
Originality/value
This study illustrates how MNCs in the Middle East are adapting and applying the PMS and the effect of culture on the use of non-financial measures.
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