The significant of business strategy in improving organizational performance

• Published in: Humanomics
• Main Author: Yuliansyah Y.; Gurd B.; Mohamed N.
• Format: Article
• Language: English
• Published: Emerald Group Publishing Ltd. 2017
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85010637609&doi=10.1108%2fH-06-2016-0049&partnerID=40&md5=4eb93fe1f015969c11f23fbd2d2e5f78

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. © 2017, © Emerald Publishing Limited.