School of Accounting
Faculty Economics & Management
Universiti Kebangsaan Malaysia
43600 Bangi, Selangor, Malaysia

amiza@ukm.edu.my

School of Accounting
Faculty Economics & Management
Universiti Kebangsaan Malaysia
43600 Bangi, Selangor, Malaysia

sofiah@ukm.edu.my

Kolej Dar al-Hikmah
43000 Kajang, Selangor Malaysia

zueiskl@yahoo.com

Abstract

The purpose of this study is to observe the integrated performance measurement system (IPMS) based on the perspective of Small and Medium Enterprises (SMEs). Building on the upper echelons perspective, the study investigates the role of SME entrepreneurs/top management leadership in determining the implementation of IPMS to assist them in making decisions. IPMS is a useful managerial tool for measuring and improving the decision-making and control process among the SMEs. Our results, based on a survey administered to 90 SMEs, reveal that leadership style has no direct effect on the IPMS practice. Instead, the decision-making style mediates the relationship between the leadership style and IPMS. Regardless of the different leadership styles, we find that a comprehensive decision approach is the way of making decisions that emphasize the integration between financial and nonfinancial measures, and between internal and external factors.

Keywords

decision-making style, Integrated Performance Measurement System, leadership, small and medium enterprises

DOI

Bibliography

Mohd Amir, A., Md. Auzair, S., & Ismail, Z. (2014). Integrated Performance Measurement System in Small and Medium Enterprises: The Role of Leadership and Decision-Making Style. Journal of Accounting and Governance, 5, 47–56.  http://dx.doi.org/10.17576/ajag-2014-5-8756

5 : 47–56 (2014)



Share article: