STRATEGIC BALANCED SCORECARD SYSTEMS FOR MALAYSIAN AUTOMOTIVE INDUSTRY

Abstract

The implementation of Strategic Control Systems (SCS) helps managers to manage strategic plan, monitor and control the performance result, encourages effective communication and discussion, provides reward based system, and feedback with quick action approach that aligns with organizational goal. Thus, the aim of this study is to develop models that incorporate SCS implementation and organizational performance (OP) in Malaysia automotive industries. A survey through questionnaire was conducted to determine the SCS as well as OP measurement. Structural equation modeling technique was adopted to analyze the data gathered from the survey. Exploratory factor analysis, reliability analysis and confirmatory factor analysis for testing the construct validity, test for reliability and model measurement were carried out. From the findings of the survey, it was shown that SCS assist in improving OP and practitioners to constantly improve OP through the implementation of SCS.