Abstract
This paper empirically examines the role of environmental uncertainty and corporate culture on the relationship between non-financial performance measures and organizational performance from manufacturing firms in Bangladesh. Specifically, it investigates the hypothesis that non-financial measures of performance lead to improved organizational performance under circumstances of increased environmental uncertainty and corporate culture.
Data from a sample of 61 manufacturing firms listed on Dhaka Stock Exchange (DSE) in Bangladesh were collected. Data were then analyzed using multiple regression and factor analysis of multivariate statistical tool.
Results show that there is a negative but statistically significant relationship regarding the impact of environmental uncertainty on the relationship between non-financial measures and firm performance. The results also advocate that sample Bangladeshi firms make greater use of non- financial measures with the aim of improving firm performance when environmental uncertainty is low. Conversely, the study finds positive relationship between flexibility type corporate culture and the organizational performance, and the moderating effect of this cultural type on the non-financial performance measures- organizational performance linkage.
The results of this study must be interpreted with caution since it concentrates only on small sample manufacturing firms.
To the best of our knowledge, the study is first to provide evidence on the environmental uncertainty and corporate culture affecting the use of non-financial performance.
Data from a sample of 61 manufacturing firms listed on Dhaka Stock Exchange (DSE) in Bangladesh were collected. Data were then analyzed using multiple regression and factor analysis of multivariate statistical tool.
Results show that there is a negative but statistically significant relationship regarding the impact of environmental uncertainty on the relationship between non-financial measures and firm performance. The results also advocate that sample Bangladeshi firms make greater use of non- financial measures with the aim of improving firm performance when environmental uncertainty is low. Conversely, the study finds positive relationship between flexibility type corporate culture and the organizational performance, and the moderating effect of this cultural type on the non-financial performance measures- organizational performance linkage.
The results of this study must be interpreted with caution since it concentrates only on small sample manufacturing firms.
To the best of our knowledge, the study is first to provide evidence on the environmental uncertainty and corporate culture affecting the use of non-financial performance.
| Original language | English |
|---|---|
| Pages | 1-30 |
| Number of pages | 30 |
| DOIs | |
| Publication status | Unpublished - 2011 |