Contemporary Performance Measurement Systems, Organizational Commitment and Managerial Performance of Top 100 Cooperatives in Malaysia

Abstract

Purpose: The aim of this study is to examine the impact of contemporary performance measurement systems (PMS) on managerial performance in the cooperative sector. In addition, it investigates the mediating effect of organizational commitment between contemporary performance measurement system and managerial performance. Theoretical Framework: The Resource Based Theory used to explain the relationship between contemporary performance measurement, managerial commitment and managerial performance. Design / Methodology / Approach: The survey was carried out to investigate the research framework in the empirical field. The population investigation is composed of cooperative management in the top 100 cooperatives in Malaysia. Utilizing a quantitative approach, 395 valid cooperatives’ managements were taken as the sample of this study Findings: The results of the study found that there is a positive relationship between contemporary performance measurement systems, organizational commitment, and managerial performance. Moreover, organizational commitment mediates the relationship between contemporary performance measurement systems and managerial performance. Research /, Practical & Social Implications: Practically, the model in this study can act as an important management tool for cooperatives to gain a sustainable competitive advantage that can affect managerial performance. Managerial performance is an essential element in a successful organization. Originality/ Value: The value of the study is to highlight the important of managerial commitment as mediating factor between contemporary performance measurement system and managerial performance. Furthermore, contemporary performance measurement system must apply three components: comprehensive, strategic and dynamic.