Investigating the Mechanism of Performance Measurement Systems with Emphasis on Usage Types, Sophistication Levels, and Environmental Uncertainty: A Case Study of Persian Gulf Holding
Subject Areas : Financial and Behavioral Researches in Accounting
seyedeh raja
ghalebi
1
(Accounting PhD student, Accounting Department, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran)
Shokralah
Khajavi
2
(Professorof Accounting, Faculty of Commerce and Finance , University of Tehran, Tehran, Iran)
ali
mahmoodi
3
(Assistant Professor, Department of Accounting, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran)
Keywords: Performance Measurement System (PMS), Interactive Use, Diagnostic Use, PMSOutcome, Operational Performance, Environmental Uncertainty,
Abstract :
The goal of any Performance Measuring System (PMS) as an integral control mechanism, is the focus on and convey of the effects financial and non-financial information on decision-making and management decisions. The Diagnostic and Interactive use of the PMS as a measurement and feedback system is used for design and strategy testing for organizational coordination. The current study attempts to assess the effects of diagnostic and interactive use alongside the inherent PMS-level complexities on Organizational returns. Alongside this, varying intervening effects of environmental uncertainty contingencies on complexity levels were analysed from across 46 active organizations in the petrol industry during 1401. In this study, within Simon’s Lever of Control (LOC) framework, we focus on the design and function of PMS, alongside Contingency plans with a compatibility-mediation approach to test the presented theories of the partial Least Squares Structural Equation Modelling (PLS-SEM) method. Our findings displayed that interactive functionality had a significant and positive relation with PMS, while the results of diagnostic functionality are left unsatisfactory (non-confirmed). Additionally, a significant correlation between complexity levels and environmental uncertainties with PMS outcomes, PMS outcomes in operational performance, Diagnostical and Interactive Functions in PMS complexities, and environmental uncertainties with Diagnostical and Interactive functions was confirmed.
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