Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry

This study determines the influence of management control systems (MCS) package (i.e. cultural, planning, cybernetic, rewards and compensation, and administrative) on organizational performance with the mediating role of organizational capabilities (i.e. the strategic management capability, operatio...

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Main Author:	Rehman, Shafique Ur
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HD58.7 Organizational Behavior.
Online Access:	https://etd.uum.edu.my/9471/1/depositpermission_s901727.pdf https://etd.uum.edu.my/9471/2/s901727_01.pdf https://etd.uum.edu.my/9471/3/s901727_references.docx
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id	my-uum-etd.9471
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spelling	my-uum-etd.94712022-06-07T02:05:58Z Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry 2019 Rehman, Shafique Ur Mohamed, Rapiah Ayoup, Hazeline Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD58.7 Organizational Behavior. This study determines the influence of management control systems (MCS) package (i.e. cultural, planning, cybernetic, rewards and compensation, and administrative) on organizational performance with the mediating role of organizational capabilities (i.e. the strategic management capability, operational capability, and external stakeholder capability) in Pakistan textile sector. The main motivation for this study is driven by the needs for better MCS in Pakistan‟s textile industry as they are facing challenges to sustain their business performance. Additionally, there are also limited studies in MCS literature that focus on MCS as a package and scant empirical evidence on the influence of MCS package on organizational performance with organizational capabilities and resource-based view (RBV) theory. The data was collected using questionnaires that were distributed randomly to 300 chief financial officers and general managers of the Pakistan‟s textile companies. Partial Least Square Structural Equation Modeling (PLSSEM) was used to analyze both the direct and indirect relationships among the variables of the study. The findings reveal that MCS package has significant influence on organizational performance and organizational capabilities. In terms of each MCS dimension, only cybernetic control, rewards and compensation control, and administrative control have significant influence on organizational performance. In addition, each of the MCS dimension also shows significant influence on organizational capabilities. Finally, results also show that organizational capabilities have significant influence on organizational performance. Hence, this study provides evidence that organizational capabilities significantly mediate the relationship between MCS package and organizational performance. Practically, this study proposes that the management of textile companies should use both MCS package and organizational capabilities in their decision making to enhance organizational performance. This study adds to the body of knowledge in MCS and RBV by explaining the mediating effect of organizational capabilities on the relationship between MCS and performance. 2019 Thesis https://etd.uum.edu.my/9471/ https://etd.uum.edu.my/9471/1/depositpermission_s901727.pdf text eng staffonly https://etd.uum.edu.my/9471/2/s901727_01.pdf text eng public https://etd.uum.edu.my/9471/3/s901727_references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Mohamed, Rapiah Ayoup, Hazeline
topic	HD58.7 Organizational Behavior.
spellingShingle	HD58.7 Organizational Behavior. Rehman, Shafique Ur Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry
description	This study determines the influence of management control systems (MCS) package (i.e. cultural, planning, cybernetic, rewards and compensation, and administrative) on organizational performance with the mediating role of organizational capabilities (i.e. the strategic management capability, operational capability, and external stakeholder capability) in Pakistan textile sector. The main motivation for this study is driven by the needs for better MCS in Pakistan‟s textile industry as they are facing challenges to sustain their business performance. Additionally, there are also limited studies in MCS literature that focus on MCS as a package and scant empirical evidence on the influence of MCS package on organizational performance with organizational capabilities and resource-based view (RBV) theory. The data was collected using questionnaires that were distributed randomly to 300 chief financial officers and general managers of the Pakistan‟s textile companies. Partial Least Square Structural Equation Modeling (PLSSEM) was used to analyze both the direct and indirect relationships among the variables of the study. The findings reveal that MCS package has significant influence on organizational performance and organizational capabilities. In terms of each MCS dimension, only cybernetic control, rewards and compensation control, and administrative control have significant influence on organizational performance. In addition, each of the MCS dimension also shows significant influence on organizational capabilities. Finally, results also show that organizational capabilities have significant influence on organizational performance. Hence, this study provides evidence that organizational capabilities significantly mediate the relationship between MCS package and organizational performance. Practically, this study proposes that the management of textile companies should use both MCS package and organizational capabilities in their decision making to enhance organizational performance. This study adds to the body of knowledge in MCS and RBV by explaining the mediating effect of organizational capabilities on the relationship between MCS and performance.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Rehman, Shafique Ur
author_facet	Rehman, Shafique Ur
author_sort	Rehman, Shafique Ur
title	Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry
title_short	Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry
title_full	Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry
title_fullStr	Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry
title_full_unstemmed	Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry
title_sort	management control systems package, organizational capabilities and organizational performance in pakistan textile industry
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2019
url	https://etd.uum.edu.my/9471/1/depositpermission_s901727.pdf https://etd.uum.edu.my/9471/2/s901727_01.pdf https://etd.uum.edu.my/9471/3/s901727_references.docx
_version_	1747828602751156224

Management control systems package, organizational capabilities and organizational performance in Pakistan Textile Industry

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