Exploring the Relationships between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance

Article Information
Journal: Business and Economics Research Journal
Title of Article: Exploring the Relationships between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance
Author(s): Melek Eker, Semih Eker
Volume: 10
Number: 1
Year: 2019
Page: 115-129
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.158
Abstract
The subject of this study is the effects of three way interaction between environmental uncertainty, business strategy and management control system on firm performance. The data from 94 Turkish manufacturing company of 500 top class company is analyzed with the SPSS. The results of multiple regression analysis indicate that higher differentiation strategy, management control system, the three-way interaction between environmental uncertainty, differentiation strategy and management control system and the three-way interaction between environmental uncertainty, differentiation strategy and interactive control system lead to higher firm performance. According to the results of t-test, the firms with high performance tend to use differentiation strategy, management control system, three-way interaction between environmental uncertainty, differentiation strategy and management control system, three-way interaction between environmental uncertainty, cost leadership strategy and management control system, three-way interaction between environmental uncertainty, differentiation strategy and interactive control system, three-way interaction between environmental uncertainty, cost leadership strategy and diagnostic control system more than ones with low performance.

Keywords: Environmental Uncertainty, Business Strategy, Management Control Systems, Financial Performance, Non-Financial Performance

JEL Classification: L10, M40

https://www.berjournal.com/wp-content/plugins/downloads-manager/img/icons/pdf.gif Full Text ( 2469)

Loading