Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms

Innovation is a very important topic for the sustainability of companies and nations. This thesis examines how leader attention to information influences innovation performance with the help of management control systems (MCS) in Malaysian medium-sized manufacturers’ context. In particular, it inves...

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Main Author: Albayati, Mohammed Sami Noori
Format: Thesis
Language:eng
eng
eng
Published: 2019
Subjects:
Online Access:https://etd.uum.edu.my/9410/1/depositpermission_s93686.pdf
https://etd.uum.edu.my/9410/2/s93686_01.pdf
https://etd.uum.edu.my/9410/3/s93686_references.docx
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spelling my-uum-etd.94102022-05-29T09:47:21Z Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms 2019 Albayati, Mohammed Sami Noori Alaudin, Ahmadasri Abas, Zakaria Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD28-70 Management. Industrial Management Innovation is a very important topic for the sustainability of companies and nations. This thesis examines how leader attention to information influences innovation performance with the help of management control systems (MCS) in Malaysian medium-sized manufacturers’ context. In particular, it investigates which and how MCS mediate leader attention to improving innovation performance. Leader’s attention comprises information search selection and search intensity of senior managers of medium-sized manufacturers. MCS are viewed as practices to convey information and help senior managers to maintain or alter the pattern of innovationrelated activities. MCS are operationalized based on Simons’ levers of control (LOC)- beliefs, boundary, diagnostic, and interactive controls. The resource-based view (RBV), the attention-based theory of search, and LOC framework are integrated to measure the constructs and explain these relationships. Data were collected through structured questionnaires sent to 654 manufacturers. Ordinary least square (OLS) regression path analysis was used to analyze the data from 156 returned surveys. The result shows that both leader attention dimensions have direct effects on innovation performance. Search selection has a direct effect on all LOC except boundary systems. However, search intensity does not have a direct effect on boundary and diagnostic systems. Beliefs and interactive systems mediate leader attention (both dimensions) in enhancing innovation performance. These findings imply that not all control mechanisms restrict innovation activities. If used selectively, control levers can help senior managers optimize information search to enhance innovation performance. Overall, the findings may be applicable to firms to recognize the important role of MCS in reporting relevant information to manage their information search activities. This issue is more pertinent among medium-sized manufacturers as they relatively have less elaborate control systems and lack proper use of information provided by the MCS. The policymakers can incorporate the findings in training materials for senior managers. 2019 Thesis https://etd.uum.edu.my/9410/ https://etd.uum.edu.my/9410/1/depositpermission_s93686.pdf text eng staffonly https://etd.uum.edu.my/9410/2/s93686_01.pdf text eng public https://etd.uum.edu.my/9410/3/s93686_references.docx text eng public other doctoral Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
eng
advisor Alaudin, Ahmadasri
Abas, Zakaria
topic HD28-70 Management
Industrial Management
spellingShingle HD28-70 Management
Industrial Management
Albayati, Mohammed Sami Noori
Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms
description Innovation is a very important topic for the sustainability of companies and nations. This thesis examines how leader attention to information influences innovation performance with the help of management control systems (MCS) in Malaysian medium-sized manufacturers’ context. In particular, it investigates which and how MCS mediate leader attention to improving innovation performance. Leader’s attention comprises information search selection and search intensity of senior managers of medium-sized manufacturers. MCS are viewed as practices to convey information and help senior managers to maintain or alter the pattern of innovationrelated activities. MCS are operationalized based on Simons’ levers of control (LOC)- beliefs, boundary, diagnostic, and interactive controls. The resource-based view (RBV), the attention-based theory of search, and LOC framework are integrated to measure the constructs and explain these relationships. Data were collected through structured questionnaires sent to 654 manufacturers. Ordinary least square (OLS) regression path analysis was used to analyze the data from 156 returned surveys. The result shows that both leader attention dimensions have direct effects on innovation performance. Search selection has a direct effect on all LOC except boundary systems. However, search intensity does not have a direct effect on boundary and diagnostic systems. Beliefs and interactive systems mediate leader attention (both dimensions) in enhancing innovation performance. These findings imply that not all control mechanisms restrict innovation activities. If used selectively, control levers can help senior managers optimize information search to enhance innovation performance. Overall, the findings may be applicable to firms to recognize the important role of MCS in reporting relevant information to manage their information search activities. This issue is more pertinent among medium-sized manufacturers as they relatively have less elaborate control systems and lack proper use of information provided by the MCS. The policymakers can incorporate the findings in training materials for senior managers.
format Thesis
qualification_name other
qualification_level Doctorate
author Albayati, Mohammed Sami Noori
author_facet Albayati, Mohammed Sami Noori
author_sort Albayati, Mohammed Sami Noori
title Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms
title_short Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms
title_full Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms
title_fullStr Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms
title_full_unstemmed Leader attention, management control systems and innovation performance amongst Malaysian medium-sized manufacturing firms
title_sort leader attention, management control systems and innovation performance amongst malaysian medium-sized manufacturing firms
granting_institution Universiti Utara Malaysia
granting_department Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate 2019
url https://etd.uum.edu.my/9410/1/depositpermission_s93686.pdf
https://etd.uum.edu.my/9410/2/s93686_01.pdf
https://etd.uum.edu.my/9410/3/s93686_references.docx
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