The Study of Factors Influence Organizational Performance: Evidences from Companies in the Lower Northern Region of Thailand

Abstract

A dynamic business environment is focused on corporate profit and performance. Consequently, managers need strategically relevant information to formulate and implement business strategies in order to achieve business growth and survive in the uncertain environment of the economy. The purpose of this study is to examine the interaction effects of environmental uncertainty and strategic management accounting on organizational performance. The configurations are derived from a sample of 166 medium and large firms in the Lower Northern Region of Thailand. A quantitative method is used for data collection through a survey design approach using a questionnaire. Contingency theory are employed in this study. The results indicate that a fit between environmental uncertainty and strategic management accounting has a positive direct relationship with organizational performance. Moreover, a higher level of environmental uncertainty will improve organizational performance. While previous studies have not addressed the interactive linkage much, this study provides evidence on how key factors can interact to promote organizational performance.