What is it about?

We find that the relationships between the use of non financial performance measures (FPMs) and organisational performance and the use of multiple performance measures (MPMs) and organisational performance are positive and highly significant. The relationship between the use of financial performance measures and organisational performance is positive but not significant.

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Why is it important?

Although there may be institutional barriers to the use of NFPMs in Libya, and other emerging markets, these are not insuperable and there is a payoff to their use. No previous studies of emerging markets, such as the Middle East or North Africa, have looked at the relationship between OP and the adoption of such a large array of MPMs.

Perspectives

The high power distance associated with the conservative, Libyan, Arab context will reinforce the tendency to use FPMs more than NFPMs. This may provide a performance advantage to those organisations which do adopt NFPMs.

Professor John R Anchor
University of Huddersfield

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This page is a summary of: Organisational performance and the use of multiple performance measures in an emerging market, International Journal of Quality & Reliability Management, April 2021, Emerald, DOI: 10.1108/ijqrm-04-2019-0107.
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