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Analyzing the effect of environmental uncertainty and dynamics on the performance evaluation system (PMS) using multi-group analysis, evidence from the Iranian petrochemical industry
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Seyed Raja Ghalebi   , Shokrollah Khajavi * , Ali Mahmoudi |
| & Professor of Accounting, School of Business and Finance, University of Tehran, Tehran, Iran, Corresponding Author, Email: skhajavi@ut.ac.ir |
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Abstract: (428 Views) |
The necessity of using a comprehensive performance evaluation system in managers' decision-making is not hidden from anyone due to reasons such as the lack of comprehensiveness of the traditional evaluation system and its excessive focus on short-term performance. From an academic point of view and in response to the perceived necessity, the way the performance evaluation system (PMS) works, the effect of its complexity levels on its benefits, and the effect of background variables such as environmental uncertainty and dynamics on the said mechanism, are considered and analyzed. In this regard, in this article, two functions of PMS (interactive and diagnostic function) are evaluated in 46 companies active in the petrochemical industry during the year 1401, and the results are obtained using structural equations with partial least squares and multi-group analysis (MGA) is analyzed.
The findings indicate a significant positive relationship between the interactive function and the absence of a significant relationship between the diagnostic function of PMS and its benefits. Also, complexity levels of PMS, environmental uncertainty and dynamics do not have a significant effect on the relationship between the interactive and diagnostic function of PMS and its benefits. Meanwhile, the relationship between the diagnostic function and complexity levels in the state of high perceived environmental uncertainty (high dynamics) is stronger than the state of low perceived environmental uncertainty (low dynamics). In addition, the relationship between PMS benefits and organizational performance is stronger in the low dynamic state than in the high dynamic state; The results of the sensitivity analysis of the model show the stability of the results based on different estimates |
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| Keywords: Performance measurement system, structural equations model, multi-group analysis, environmental uncertainty, dynamics, organizational performance. |
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Full-Text [PDF 1747 kb]
(151 Downloads)
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Type of Study: Research |
Subject:
Accounting
Received: 2023/07/23 | Accepted: 2023/10/7 | Published: 2024/06/19
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