The Application of Non-Financial Performance Measurement in Manufacturing Firms of Bangladesh
| Fahmida Begum Department of Accounting and Information Systems Comilla University |
Md. Musfiqur Rahman* Department of Accounting and Information Systems University of Dhaka |
Received October 24, 2024
Revised January 2, 2025
January 7, 2025
Accepted January 10, 2025
Abstract
Purpose: This study aims to investigate the implementation of performance measurement systems in manufacturing companies and explore how performance measures are used in relation to the age and size of the firm, the owner’s participation, and modern information
technology.
Research Design/Methodology: The sample size is determined based on stratified random sampling and data were collected from January to June, 2023. A well-structured questionnaire survey has been applied to collect information from the respondents. This study considered 78 manufacturing companies in Bangladesh, covering a wide range of industries including the tannery industry, pharmaceuticals
and chemicals, paper and printing, jute, cement, ceramics, engineering, and textile. This study used descriptive statistics, Anova test and regression model to find out the results.
Findings: The results indicate that the most commonly utilized non-financial performance measures are those related to personnel and operations, while customer-related methods are less frequently used. The findings demonstrate a statistically significant relationship between owner participation and non-financial performance measurement systems (NFPMS). This study also finds that firm size, age, and use of information technology have positive association with NFPMS as per expectation but the results are not statistically significant. Implications of the Study: This study presents new empirical data on the utilization of non financial performance indicators and furthers our comprehension of the contingency approach within the context of manufacturing performance assessment systems. However, the findings of this study will contribute to the policymaker, regulators, academician, practitioners, about the application and efficiency level of existing non-financial instruments for the growth of manufacturing sector and necessity of restructuring or reforming or inclusion of new non financial instruments.
Keywords: Non-Financial Performance Measurement Systems, Management Accounting Practices, Manufacturing Companies.
*Corresponding Author