The Effect of Strategic Performance Measurement System and Service Strategy on a Firm’s Performance

Authors

  • Wuri Septi Handayani
  • Lindrianasari ‎
  • Yuliansyah Yuliansyah
  • Rindu Rika Gamayuni

Abstract

In regard of the significant contribution of service to a firm’s performance, this study investigates the impact of strategic performance measurement sytstem (SPMS) on sustainability . Our survey method is to collect the research data by distributing questionnaires to the top management at airline industry office in Indonesia. Based on the 105 usable data analysed using SmartPLS, this study shows that service strategy and SPMS affect a firm’s performance. SPMS has a significant influence on a firm’s performance when it is related to business strategy, especially service strategy. More specifically, the alignment of service strategy with the business strategy can improve financial performance in the Indonesian airline industry.This study implies that organizations should design SPMS that links to service strategy with the company environment to improve performance.The study contributes to the literature of SPMS, service strategy and company performance in in the airline industry in a way that is hardly to be found in the management accounting field.

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Published

2020-01-25

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Section

Articles