Digital-related capabilities and organizational performance: The role of performance measurement systems / Yupei Xie

Yupei , Xie (2023) Digital-related capabilities and organizational performance: The role of performance measurement systems / Yupei Xie. Masters thesis, Universiti Malaya.

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Abstract

The performance measurement system is considered a management mechanism to ensure corporate executives. With the development of the Internet and big data technology, digitalization is not only a trend but will also with a faster speed. The impact of digitalization on enterprises is all-round, while traditional performance measurement systems' role is weakening. Therefore, digitalization and performance measurement systems should be combined to address the challenges and opportunities of digitalization. In contemporary empirical studies, only some people pay attention to how digital-related capabilities are related to performance, resulting in a knowledge gap in this area. Consequently, to close this gap, this study aims to study how PMS can assist different types of digital-related capabilities in improving organizational performance and the relationship between PMS and organizational performance. This study focuses on relationships between data collection, data analysis, and testing structures. In quantitative research, researchers employ two standard research methods - survey and experimental (Creswell, 2009). The survey research method was used in this study because it helps to provide standardized information to describe and examine the relationship between variables (Malhotra & Grover, 1998). As part of this study, structured questionnaires were used to collect survey data from 411 large and mediumsized Internet enterprises in China. Additionally, structural equation and model (SEM) analysis from the partial least square (PLS) approach was used to analyze the data. This study first explains how various digital-related capabilities can promote PMS to improve organizational performance and subsequently improve organizational performance. It fills a gap in the literature on digital-related capabilities and the mediating role of organizational performance and performance measurement systems. This study encourages businesses to adapt to the digital age, aiming to improve organizational performance. The relationship between PMS, digital-related capabilities, and organizational performance is investigated in this study, which provides a detailed explanation of the relationship between each variable. This study also outlines data analysis strategies and discusses statistical studies used to determine the reliability and validity of research models.

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