From corporate governance to balanced performance measurement

Luu Trong Tuan

Knowledge Management Research & Practice, 2014, vol. 12, issue 1, 12-28

Abstract: This inquiry into consumer goods companies in Vietnam aims to discern whether such constructs as corporate governance, market orientation, and knowledge sharing can act as antecedents for the balancedness between financial and non-financial performance metrics in the performance measurement system. Structural equation modelling was utilized to dissect 304 responses returned from self-administered structured questionnaires despatched to 1,131 middle-level managers. From the findings surfaced the interplay between market orientation and knowledge sharing. Corporate governance, on the other hand, tends to flourish market orientation and knowledge sharing, which in turn encouragingly influence performance measurement balancedness. The findings also paved the way from strong corporate governance to a high degree of balancedness in performance measurement system. Through the findings of the research, the insight into the interplay pattern of performance measurement balancedness and its antecedents underscores the magnitude of the corporate governance mechanism as well as market-oriented culture and/or intelligence dissemination culture in the implementation of the balanced performance measurement system in consumer goods companies in the Vietnam business setting.

Date: 2014
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DOI: 10.1057/kmrp.2012.42

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