STRATEGIC PERFORMANCE MEASUREMENT SYSTEM DESIGN AND ORGANISATIONAL CAPABILITIES

This paper reports the results of strategic performance measurement system (SPMS) design and organisational capabilities i.e. market orientation, entrepreneurship, innovation and organisational learning. The main research question of this study is 'does the adoption of SPMS that consists of financial and non-financial measures enhance organisational capabilities'. The data was collected using a mail survey to top management of listed companies in Malaysia. The results found that overall SPMS design had a statistically significant influence on organisational capabilities. The regression result for each dimension of SPMS design i.e. financial and non-financial showed that non-financial had a positive and significant impact on each dimension of capabilities, while financial measures only had a significant relationship with organisational learning. The results strongly suggest that the adoption of multidimensional financial and non-financial measures is positively associated to enhancing organisational capabilities.