School of Business and Economics
Universiti Putra Malaysia
43400 Serdang, Selangor
MALAYSIA
School of Business and Economics
Universiti Putra Malaysia
43400 Serdang, Selangor
MALAYSIA
Faculty of Management
Multimedia University
63100 Cyberjaya, Selangor
MALAYSIA.
School of Business and Economics
Universiti Putra Malaysia
43400 Serdang, Selangor
MALAYSIA
Water and Marine Sciences (LUAWMS)
University of Agriculture
Uthal, Las Bela, Balochistan 90150
PAKISTAN.
Abstract
This study focuses on the interactive use of Management Control System (MCS) and the identification of threats and opportunities that enables management to respond quickly to changes in the environment. The study aims to examine, from a resource-based view (RBV) perspective, the relationship between interactive use of MCS and organisational capabilities (market responsiveness, strategic networking, process reliability and efficiency, innovativeness and learning) as well as their subsequent impact on organisational performance. An empirical study was conducted involving 70 publiclisted companies in Malaysia. The analysis included the use of descriptive and multiple regression tests. The findings provide empirical evidence that interactive MCS facilitates the development of organisational capabilities and that organisational capabilities play a mediating role in the relationship between MCS interactive usage and organisational performance. This study indicates that companies in Malaysia still focus on financial measures rather than on nonfinancial ones in most of their decision making. Managers who are short-term focused or financially oriented in their decision making may jeopardise the long-term sustainability of their organisations’ performance.