The significant of business strategy in improving organizational performance. Issue 1 (13th February 2017)

• Record Type: Journal Article
• Authors: Yuliansyah, Yuliansyah; Gurd, Bruce; Mohamed, Nafsiah
• Is Part Of: Humanomics. Volume 33:Issue 1(2017)
• Page Start: 56
• Page End: 74
• Publication Date: 2017-02-13
• Subjects: Indonesia -- Firm performance -- Business strategy -- Service sector -- Financial institutions -- Strategic performance measurement; Economic development -- Moral and ethical aspects -- Periodicals; Economic policy -- Moral and ethical aspects -- Periodicals; Social change -- Moral and ethical aspects -- Periodicals; 338.9001
• DOI: 10.1108/H-06-2016-0049
• Languages: English
• ISSNs: 0828-8666

Abstract

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.