Author

  • Ismail Elnihewi

    • Othman Yeop Abdullah Graduate School of Business, UUM, Malaysia
    • Malaysia
  • Faudziah Hanim Fadzil

    • Othman Yeop Abdullah Graduate School of Business, UUM, Malaysia
    • Malaysia
  • Rapiah Mohamed

    • Othman Yeop Abdullah Graduate School of Business, UUM, Malaysia
    • Malaysia

Abstract

This paper investigates the relationship between contingency factors (organisational structure and competition) and organisational performance within Libyan commercial banks. 154 usable questionnaires from branch managers of Libyan commercial banks were investigated for the hypotheses of study. The results of this study indicate that the relationship between organisational structure and organisational performance is significant and positive. In contrast, the results of the study found that the relationship between competition and organisational performance is negative and insignificant.

Keywords

References

  • Ahmed, A. S. (2010). An empirical analysis of Libyan business environment and foreign direct investment. Unpublished PhD Thesis, Durham University (UK).
  • Alkizza, A. A. (2005). The Impact of business environment on management accounting practices: Libyan evidence. Unpublished PhD Thesis, University of Liverpool (UK).
  • Bank of Commerce & Development. (2013). A modest contribution of Libyan banks to finance its economy Banks and moneys. Libya: Bank Trade & Development.
  • CBL. (2012). The evolution the important financial indicators of commercial banks. Tripoli: Central Bank of Libya.
  • Chamiea, A., Elfeturi, A. & Abusneina, M. (1997). Role of institutions and financial market in rebuilding the structure of Libyan economy. National Academy of Scientific Research.
  • Chenhall, R. H. (2003). Management control systems design within its organisational context: findings from contingency-based research and directions for the future. Accounting, organizations and Society , 28(2-3), 127-168.
  • Chenhall, R. H. & Morris, D. (1986). The impact of structure, environment, and interdependence on the perceived usefulness of management accounting systems. Accounting Review , 61(1), 16-35.
  • Chia, Y. M. (1995). Decentralization, management accounting system (MAS) information characteristics and their interaction effects on managerial performance: a Singapore study. Journal of Business Finance & Accounting , 22(6), 811-830.
  • Child, J. (1972). Organisational structure, environment and performance: The role of strategic choice. Sociology , 6(1), 1-22.
  • Gabgub, A. I. (2009). Analysis of non-performing loans in the Libyan state-owned commercial banks: Perception analysis of the reasons and potential methods for treatment. Unpublished PhD Thesis, Durham University (UK).
  • Gordon, L. A. & Narayanan, V. K. (1984). Management accounting systems, perceived environmental uncertainty and organization structure: an empirical investigation. Accounting, organizations and Society , 9(1), 33-47.
  • Gosselin, M. (2005). An empirical study of performance measurement in manufacturing firms. International Journal of Productivity and Performance Management , 54(5/6), 419-437.
  • Hao, Q., Kasper, H. & Muehlbacher, J. (2012). How does organisational structure influence performance through learning and innovation in Austria and China. Chinese Management Studies , 6(1), 36-52.
  • Henri, J. F. (2004). Performance measurement and organisational effectiveness: Bridging the gap. Managerial Finance , 30(6), 93-123.
  • Hoque, Z. (2004). A contingency model of the association between strategy, environmental uncertainty and performance measurement: impact on organisational performance. International Business Review , 13, 485–502.
  • Hoque, Z. & Hopper, T. (1997). Political and industrial relations turbulence, competition and budgeting in the nationalised jute mills of Bangladesh. Accounting and Business Research , 27(2), 125-143.
  • Hussain, M. M. & Hoque, Z. (2002). Understanding non-financial performance measurement practices in Japanese banks: a new institutional sociology perspective. Accounting, Auditing & Accountability Journal , 15(2), 162-183.
  • Khong, K. W. & Richardson, S. (2003). Business process re-engineering in Malaysian banks and finance companies. Managing Service Quality , 13(1), 54-71.
  • Lai, G. C. & Limpaphayom, P. (2003). Organisational structure and performance: evidence from the nonlife insurance industry in Japan. Journal of Risk and Insurance , 70(4), 735-757.
  • Langfield-Smith, K. (1997). Management control systems and strategy: A critical review. Accounting, Organizations and Society , 22(2), 207-232. doi: 10.1016/s0361-3682(95)00040-2
  • Lee, C. L. & Yang, H. J. (2011). Organization structure, competition and performance measurement systems and their joint effects on performance. Management Accounting Research , 22(2), 84-104. doi: 10.1016/j.mar.2010.10.003
  • Levine, R. (2005). Finance and growth: theory and evidence. Providence: Brown University and the NBER.
  • Libby, T. & Waterhouse, J. H. (1996). Predicting change in management accounting systems. Journal of Management Accounting Research , 8, 137-150.
  • Lorenzo, L. (2008). Performance measures from a contingency perspective: field evidence. Paper presented at the In 31st Annual Congress of the European Accounting Association, Rotterdam.
  • Mayers, D. & Smith Jr, C. W. (1981). Contractual provisions, organisational structure, and conflict control in insurance markets. Journal of Business , 3, 407-434.
  • Meijaard, J., Brand, M. J. & Mosselman, M. (2005). Organisational structure and performance in Dutch small firms. Small Business Economics , 25(1), 83-96.
  • Mia, L. & Winata, L. (2014). Manufacturing strategy and Organisational performance: The role of competition and MAS information. Journal of Accounting & Organisational Change , 10(1), 83-115.
  • Miles, R. E., Snow, C. C., Meyer, A. D. & Coleman, H. J. (1978). Organisational strategy, structure, and process. Academy of Management Review , 3(3), 546-562.
  • Murayama, K. & Elliot, A. J. (2012). The competition–performance relation: A meta-analytic review and test of the opposing processes model of competition and performance. Psychological Bulletin , 138(6), 10351070. doi: 10.1037/a0028324
  • Neely, A. (2005). The evolution of performance measurement research: developments in the last decade and a research agenda for the next. International Journal of Operations & Production Management , 25(12), 1264-1277.
  • Paradi, J. C. & Zhu, H. (2012). A survey on bank branch efficiency and performance research with data envelopment analysis. Omega , 41(1), 61-79.
  • Ringim, K. J. (2012). Effect of the business process reengineering factors and information technology capability on organisational performance. Unpublished PhD Thesis, Universiti Utara Malaysia.
  • Uddin, S. S. & Suzuki, Y. (2014). The impact of competition on bank performance in Bangladesh: an empirical study. International Journal of Financial Services Management , 7(1), 73-94.
  • Van der Stede, W. A., Chow, C. W. & Lin, T. W. (2006). Strategy, choice of performance measures, and performance. Behavioral Research in Accounting , 18, 185-205.
  • Venkatraman, N., Henderson, J. C. & Oldach, S. (1993). Continuous strategic alignment: Exploiting information technology capabilities for competitive success. European Management Journal , 11(2), 139-149.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Elnihewi, I., Fadzil, F. H., & Mohamed, R. (2015). Effect of Organisational Structure and Competition on Organisational Performance in Libyan Commercial Banks. Information Management and Business Review, 7(6), 50-55. https://doi.org/10.22610/imbr.v7i6.1182

Share this article

Section

Research Paper

Published

2015-12-30

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission