An Empirical Investigation of the Interrelationships among Industry Dynamism, Market Orientation, Managerial Use of MAS Information and Organisational Performance Using the Sustainability Balanced Scorecard Perspectives: Evidence from Indonesian Manufacturing Companies

Abstract

Manufacturing companies in Indonesia have been facing strong market competition from both local and international sources. In order to keep abreast with the latest developments in the manufacturing industry worldwide, and to enhance their companies’ competitiveness, Indonesian manufacturers need to nderstand the role of some important factors (such as industry dynamism, market orientation and managerial use of management accounting system (MAS) information that are likely to help their companies’ capability to successfully deal with that competition. This study examined the relationships between industry dynamism, market orientation, managerial use of broad scope MAS information and organisational performance. Organisational performance in this study used a sustainability balanced scorecard perspective that includes financial performance, customer-related performance, internal business process-related performance, learning and growth-related performance, and corporate social performance. In addition, this study also examined the relationships between industry dynamism, market orientation, and managerial use of broad scope MAS information (hereafter the use of MAS information). This study used a mixed method approach that combines both a survey questionnaire and in-depth interviews. In total, 129 general managers of medium to large manufacturing companies in Indonesia returned and completed the survey questionnaire, while 15 of these managers participated in the in-depth interviews.