Exploring the Relationships between Environmental Uncertainty, Business Strategy and Management Control System on Firm Performance

Melek Eker and Semih Eker
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Melek Eker: Uludag University
Semih Eker: Uludag University

Business and Economics Research Journal, 2019, vol. 10, issue 1, 115-129

Abstract: The subject of this study is the effects of three way interaction between environmental uncertainty, business strategy and management control system on firm performance. The data from 94 Turkish manufacturing company of 500 top class company is analyzed with the SPSS. The results of multiple regression analysis indicate that higher differentiation strategy, management control system, the three-way interaction between environmental uncertainty, differentiation strategy and management control system and the three-way interaction between environmental uncertainty, differentiation strategy and interactive control system lead to higher firm performance. According to the results of t-test, the firms with high performance tend to use differentiation strategy, management control system, three-way interaction between environmental uncertainty, differentiation strategy and management control system, three-way interaction between environmental uncertainty, cost leadership strategy and management control system, three-way interaction between environmental uncertainty, differentiation strategy and interactive control system, three-way interaction between environmental uncertainty, cost leadership strategy and diagnostic control system more than ones with low performance.

Keywords: Environmental Uncertainty; Business Strategy; Management Control Systems; Financial Performance; Non-Financial Performance (search for similar items in EconPapers)
JEL-codes: L10 M40 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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