Performance Implications of Misalignment Among Business Strategy, Leadership Style, Organizational Culture and Management Accounting Systems
27 Pages Posted: 11 Jan 2018
Date Written: January 9, 2018
The purpose of this study is to examine the performance consequences of misalignment among business strategy, organizational configurations and management accounting systems. Based on a questionnaire surveys conducting in publicly held manufacturing companies listed in Indonesia Stock Exchange, we hypothesize and find that misalignments among business strategy, leadership style, organizational culture and management accounting systems are negatively associated with both financial and non-financial performance. The findings of our study suggest that product differentiation companies should employ transformational leaders, promote flexible organizational culture, and use broad-focused management accounting systems. By contrast, cost leadership companies should employ transactional leaders, promote controlled organizational culture and use narrow-focused management accounting systems.
Keywords: Misalignment, Business Strategy, Leadership Style, Organizational Culture, Management Accounting Systems
JEL Classification: D21, G32, L1, M41
Suggested Citation: Suggested Citation