Multiple Performance Measures and Organisational Performance in an Emerging Market

Abstract

The performance measurement diversity approach suggests that organisations attain superior performance when they place greater emphasis on a broad set of financial (FPMs) and non- financial performance measures (NFPMs). This study is an empirical investigation of the relationship between multiple performance measures (MPMs) and organizational performance (OP) in a Libyan context. Cross-sectional questionnaire survey data was obtained from 132 Libyan companies (response rate of 61%). The results indicate that MPMs are commonly used by both manufacturing and non-manufacturing Libyan companies. However, these companies still rely heavily on financial performance measures. The relationships between NFPMs and OP, and MPMs and OP are positive and highly significant. The relationship between FPMs and OP is positive but not significant.