Title: Role of organisational culture on performance measurement practice: the case of Malaysian manufacturing firms

Authors: Muslim Har Sani Mohamad; Fazlin Ali; Amizawati Mohd Amir

Addresses: Department of Accounting, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, P.O. Box 10, 50728, Kuala Lumpur, Malaysia ' Department of Agribusiness and Information System, Faculty of Agriculture, Universiti Putra Malaysia, 43400 Serdang, Selangor, Malaysia ' Faculty of Economics and Business, School of Accounting, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia

Abstract: This study aims to examine the influence of the competing values on firm performance mediated by diverse performance measurement system. With a different focus to that of Henri's (2006) concept of dominant culture, we argue that in control dominant firms, flexibility and diverse performance measures (PM) can lead to improved performance. Testing of the two competing values based on dominant culture excludes the chance to test this possibility. Also, we propose that through the use of diverse PM, the flexibility value of the firms will have stronger influence on firms' performance than the control values. As the most developed sector in Malaysian economy, manufacturing companies need to adopt the right mix of PMs to be competitive in facing globalised market, thus, they were selected for the study. The study found that with stronger presence of cogent leadership, use of diverse performance measures can translate flexibility values into firms' improved performance.

Keywords: organisational culture; flexibility values; control values; performance measures; firm performance; Malaysia; emerging economies; manufacturing industry; leadership.

DOI: 10.1504/AAJFA.2013.056986

Afro-Asian Journal of Finance and Accounting, 2013 Vol.3 No.4, pp.297 - 318

Received: 26 Dec 2011
Accepted: 19 Dec 2012
Published online: 28 Jun 2014 *

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