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NEXUS BETWEEN PERFORMANCE MEASUREMENT SYSTEMS AND PSYCHOLOGICAL EMPOWERMENT IN THE PHARMACEUTICAL INDUSTRY
Corresponding Author(s) : Umer Ishfaq
Humanities & Social Sciences Reviews,
Vol. 9 No. 2 (2021): March
Abstract
Purpose of the study: The purpose of this study is to examine the impact of interactive performance measurement systems on the employees’ psychological empowerment in the pharmaceutical industry in Pakistan.
Methodology: This research used a survey and the respondents were medical representative/detailer employees in the pharmaceutical firms in Pakistan. Data was collected from 390 responding out of 650 distributed questionnaires and analyzed by using Smart PLS.
Main Findings: The outcomes of this study showed that the interactive performance measurement system has a positive and significant impact on the employees’ psychology in the pharmaceutical industry in Pakistan.
Applications of the study: This research showed that the interactive performance measurement system is a tool that can open the communication network between the managers and the employees which must be supported by maximum employees’ psychological empowerment so that can reach the company’s vision and mission, especially for the medical representative/detailer in the pharmaceutical company in Pakistan.
Novelty/Originality of the study: This research showed how important psychological empowerment is for lower-middle level employees especially for the medical representative/detailer in order to improve the company’s performance by using the interactive performance measurement system in a pharmaceutical company in Pakistan.
Keywords
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- Abernethy, M.A., Bouwens, J. and Van Lent,L. (2013).The Role of Performance Measures in the Intertemporal Decisionsof Business Unit Managers. Contemporary Accounting Research, 15(3), 925-961. https://doi.org/10.1 111/j.1911-3846.2012.01178.x DOI: https://doi.org/10.1111/j.1911-3846.2012.01178.x
- Adler, P.S. and Chen, C.X. (2011). Combining creativity and control: Understanding individual motivation in large-scale collaborative creativity. Accounting, Organizations and Society, 7(4), 63-85. https://doi.org/10 .1016/j.aos.2011.02.002 DOI: https://doi.org/10.1016/j.aos.2011.02.002
- Al-Saedi, D. S., Masood, S., Faizan-Ur-Rab, M.,Alomarah, A. and Ponnusamy (2018). Mechanical properties and energy absorption capability of functionally graded F2BC Clattice fabricated by SLM. Pacific Accounting Review, 14(2), 32-44. https://doi.org/10.1016/j.matdes.2018.01.059 DOI: https://doi.org/10.1016/j.matdes.2018.01.059
- Alaaraj, S., Mohamed, Z. A. and Bustamam, U. S. A. (2018). External growth strategies and organizational performance in emerging markets. International Journal of Management, 13(4), 234-252.
- Appuhami, R. (2017). Exploring the relationship between strategic performance measurement systems and managers' creativity: the mediating role of psychological empowerment and organizational learning. Accounting & Finance, 45(3), 763-786.
- Aranda, C. and Arellano, J. (2010). Strategic performance measurement systems and managers' understanding of the strategy: A field research in a financial institution. Journal of Accounting & Organizational Change, 6(2), 330-358. https://doi.org/10.1108/18325911011075213 DOI: https://doi.org/10.1108/18325911011075213
- Aydogmus,C.,Camgoz,S.,Ergeneli,A. and...(2018). Perceptions of transformational leadership and job satisfaction: The roles of personality traits and psychological empowerment. Journal of Management, 21(1), 331-337.
- Chan, Y., Nadler, S. and Hargis, M. (2015). Attitudinal And Behavioral Outcomes of Employees' psychological Empowerment: A Structural Equation Modeling Approach, abacademies.org. PalArch’s Journal of Archaeology of Egypt / Egyptology, 19(1), 590-600.
- DoValle, P.O. and Assaker, G. (2016). Using partial least squares structural equation modelling in tourism research: A review of past research and recommendations for future applications. Journal of Travel Research, 55(5), 695-708. https://doi.org/10.1177/0047287515569779 DOI: https://doi.org/10.1177/0047287515569779
- Grafton, J., Lillis, A.M. and Widener, S.K. (2010). The role of performance measurement and evaluation in building organizational capabilities and performance. Accounting, Organizations and Society, 35(2), 689-706. https://doi.org/10.1016/j.aos.2010.07.004 DOI: https://doi.org/10.1016/j.aos.2010.07.004
- Grossi,G., Papenfu, U., Tremblay, M. and.. (2015). How can performance measurement systems empower managers? An exploratory study instate-owned enterprises. Indian Journal of Economics and Business, 21(1), 343-359.
- Hair (2016). Joseph F. Hair Jr_G. Tomas M. Hult_ Christian M. Ringle_Marko Sarstedt- A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)-Sage Publications, Inc (2016), 3(1), 873-891.
- Harbridge, R. (2018). Psychological Empowerment and Job Crafting among Registered Nurses Working in Public Health in Ontario, Canada, Pemberdayaan Psikologis dan Crafting Pekerjaan diantara Perawat Terdaftar yang Bekerja di Kesehatan Masyarakat di Ontario, Kanada, Webology, 18(6), 4815-4833.
- Khan, K. M., Ullah M. (2021). Mediating Role of Ethical Leadership Between Employees Empowerment and Competitive Edge: A Case of Commercial Banks in Pakistan. Humanities & Social Sciences Reviews, 9(2), 219-231. https://doi.org/10.18510/hssr.2021.9223 DOI: https://doi.org/10.18510/hssr.2021.9223
- Lau Chong, M. (2015). The effects of non-financial performance measures on role clarity, procedural fairness and managerial performance. Pacific Accounting Review, 27(5), 142-165. https://doi.org/10.1108/PAR-03-2013-0017 DOI: https://doi.org/10.1108/PAR-03-2013-0017
- Moulang (2015). Performance measurement systems use in generating psychological empowerment and individual creativity. Accounting and Finance, 55(6), 519-544. https://doi.org/10.1111/acfi.12059 DOI: https://doi.org/10.1111/acfi.12059
- Richter, N.F., Sinkovics, R.R., Ringle, C.M. and Schlägel, C. (2016).A critical look at the use of SEM in international business research. International Marketing Review, 33(4), 376-404. https://doi.org/10.1108/IMR-04-2014-0148 DOI: https://doi.org/10.1108/IMR-04-2014-0148
- Nazim, D. M., Batool, S. & Urooge, S. (2019). Marketing Strategies of SME and its Effects on Performance: Empirical Evidence from Pharmaceutical Sector of Khyber Pakhtunkhwa. Global Social Sciences Review (GSSR), 4(2), 210-220. https://doi.org/10.31703/gssr.2019(IV-II).20 DOI: https://doi.org/10.31703/gssr.2019(IV-II).20
- Ringle, C.M., Sarstedt, M. and Straub,D.W. (2012). Editor's comments: a critical look at the use of PLS-SEM in "MIS Quarterly". Global Social Sciences Review, 4(3), 273-283. https://doi.org/10.2307/41410402 DOI: https://doi.org/10.2307/41410402
- Shahid, M., & Ali, N., (2020). The Mediating Role of Psychological Capital and Organizational Commitment between Work Environment and Job Burnout. Review of Economics and Development Studies, 5(2), 381-386. https://doi.org/10.26710/reads.v5i2.624 DOI: https://doi.org/10.26710/reads.v5i2.624
- Shaikh, S., Channar, P., Shaikh, M., &, Ullah, M., (2021). Financial constraints and listed sugar mills on Pakistan Stock Exchange. International Journal of Management, 12(3), 70-76. https://doi.org/10.29270/ JBS.12.2(2018).0118
- Seibert, S., Wang, G. and Courtright, S. (2011).Antecedents and consequences of psychological and team empowerment in organizations: A meta-analytic review. Journal of Applied Psychology Elementary Education Online, 19(3), 3326-3340. https://doi.org/10.1037/a0022676 DOI: https://doi.org/10.1037/a0022676
- Shen and Perera (2012). Diagnostic and Interactive Uses of Budgets and the Moderating Effect of Strategic Uncertainty. Asia-Pacific Management Accounting Journal, 7(4), 127-156.
- Spreitzer (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Webology, 38(4),1442-1465. https://doi.org/10.5465/256865 DOI: https://doi.org/10.5465/256865
- Ullah, M. (2020). Women Empowerment and Social Development in Afghanistan through Micro Finance. International Journal of Academic Research in business and Social Sciences, 10(12), 377-389. https://doi.org/10.6007/IJARBSS/v10-i12/8324 DOI: https://doi.org/10.6007/IJARBSS/v10-i12/8324
- Ullah, M., Shaikh, M., Channar, P., & Shaikh, S., (2021). Financial forecasting: an individual perspective. International Journal of Management, 12(3), 60-69.
- Ullah, M., Hamdard, M.N., (2019). CEO Duality and Risk: A Case of Textile Firms Listed on Pakistan Stock Exchange. North American Academic Research, 2(11), 122-131
References
Abernethy, M.A., Bouwens, J. and Van Lent,L. (2013).The Role of Performance Measures in the Intertemporal Decisionsof Business Unit Managers. Contemporary Accounting Research, 15(3), 925-961. https://doi.org/10.1 111/j.1911-3846.2012.01178.x DOI: https://doi.org/10.1111/j.1911-3846.2012.01178.x
Adler, P.S. and Chen, C.X. (2011). Combining creativity and control: Understanding individual motivation in large-scale collaborative creativity. Accounting, Organizations and Society, 7(4), 63-85. https://doi.org/10 .1016/j.aos.2011.02.002 DOI: https://doi.org/10.1016/j.aos.2011.02.002
Al-Saedi, D. S., Masood, S., Faizan-Ur-Rab, M.,Alomarah, A. and Ponnusamy (2018). Mechanical properties and energy absorption capability of functionally graded F2BC Clattice fabricated by SLM. Pacific Accounting Review, 14(2), 32-44. https://doi.org/10.1016/j.matdes.2018.01.059 DOI: https://doi.org/10.1016/j.matdes.2018.01.059
Alaaraj, S., Mohamed, Z. A. and Bustamam, U. S. A. (2018). External growth strategies and organizational performance in emerging markets. International Journal of Management, 13(4), 234-252.
Appuhami, R. (2017). Exploring the relationship between strategic performance measurement systems and managers' creativity: the mediating role of psychological empowerment and organizational learning. Accounting & Finance, 45(3), 763-786.
Aranda, C. and Arellano, J. (2010). Strategic performance measurement systems and managers' understanding of the strategy: A field research in a financial institution. Journal of Accounting & Organizational Change, 6(2), 330-358. https://doi.org/10.1108/18325911011075213 DOI: https://doi.org/10.1108/18325911011075213
Aydogmus,C.,Camgoz,S.,Ergeneli,A. and...(2018). Perceptions of transformational leadership and job satisfaction: The roles of personality traits and psychological empowerment. Journal of Management, 21(1), 331-337.
Chan, Y., Nadler, S. and Hargis, M. (2015). Attitudinal And Behavioral Outcomes of Employees' psychological Empowerment: A Structural Equation Modeling Approach, abacademies.org. PalArch’s Journal of Archaeology of Egypt / Egyptology, 19(1), 590-600.
DoValle, P.O. and Assaker, G. (2016). Using partial least squares structural equation modelling in tourism research: A review of past research and recommendations for future applications. Journal of Travel Research, 55(5), 695-708. https://doi.org/10.1177/0047287515569779 DOI: https://doi.org/10.1177/0047287515569779
Grafton, J., Lillis, A.M. and Widener, S.K. (2010). The role of performance measurement and evaluation in building organizational capabilities and performance. Accounting, Organizations and Society, 35(2), 689-706. https://doi.org/10.1016/j.aos.2010.07.004 DOI: https://doi.org/10.1016/j.aos.2010.07.004
Grossi,G., Papenfu, U., Tremblay, M. and.. (2015). How can performance measurement systems empower managers? An exploratory study instate-owned enterprises. Indian Journal of Economics and Business, 21(1), 343-359.
Hair (2016). Joseph F. Hair Jr_G. Tomas M. Hult_ Christian M. Ringle_Marko Sarstedt- A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)-Sage Publications, Inc (2016), 3(1), 873-891.
Harbridge, R. (2018). Psychological Empowerment and Job Crafting among Registered Nurses Working in Public Health in Ontario, Canada, Pemberdayaan Psikologis dan Crafting Pekerjaan diantara Perawat Terdaftar yang Bekerja di Kesehatan Masyarakat di Ontario, Kanada, Webology, 18(6), 4815-4833.
Khan, K. M., Ullah M. (2021). Mediating Role of Ethical Leadership Between Employees Empowerment and Competitive Edge: A Case of Commercial Banks in Pakistan. Humanities & Social Sciences Reviews, 9(2), 219-231. https://doi.org/10.18510/hssr.2021.9223 DOI: https://doi.org/10.18510/hssr.2021.9223
Lau Chong, M. (2015). The effects of non-financial performance measures on role clarity, procedural fairness and managerial performance. Pacific Accounting Review, 27(5), 142-165. https://doi.org/10.1108/PAR-03-2013-0017 DOI: https://doi.org/10.1108/PAR-03-2013-0017
Moulang (2015). Performance measurement systems use in generating psychological empowerment and individual creativity. Accounting and Finance, 55(6), 519-544. https://doi.org/10.1111/acfi.12059 DOI: https://doi.org/10.1111/acfi.12059
Richter, N.F., Sinkovics, R.R., Ringle, C.M. and Schlägel, C. (2016).A critical look at the use of SEM in international business research. International Marketing Review, 33(4), 376-404. https://doi.org/10.1108/IMR-04-2014-0148 DOI: https://doi.org/10.1108/IMR-04-2014-0148
Nazim, D. M., Batool, S. & Urooge, S. (2019). Marketing Strategies of SME and its Effects on Performance: Empirical Evidence from Pharmaceutical Sector of Khyber Pakhtunkhwa. Global Social Sciences Review (GSSR), 4(2), 210-220. https://doi.org/10.31703/gssr.2019(IV-II).20 DOI: https://doi.org/10.31703/gssr.2019(IV-II).20
Ringle, C.M., Sarstedt, M. and Straub,D.W. (2012). Editor's comments: a critical look at the use of PLS-SEM in "MIS Quarterly". Global Social Sciences Review, 4(3), 273-283. https://doi.org/10.2307/41410402 DOI: https://doi.org/10.2307/41410402
Shahid, M., & Ali, N., (2020). The Mediating Role of Psychological Capital and Organizational Commitment between Work Environment and Job Burnout. Review of Economics and Development Studies, 5(2), 381-386. https://doi.org/10.26710/reads.v5i2.624 DOI: https://doi.org/10.26710/reads.v5i2.624
Shaikh, S., Channar, P., Shaikh, M., &, Ullah, M., (2021). Financial constraints and listed sugar mills on Pakistan Stock Exchange. International Journal of Management, 12(3), 70-76. https://doi.org/10.29270/ JBS.12.2(2018).0118
Seibert, S., Wang, G. and Courtright, S. (2011).Antecedents and consequences of psychological and team empowerment in organizations: A meta-analytic review. Journal of Applied Psychology Elementary Education Online, 19(3), 3326-3340. https://doi.org/10.1037/a0022676 DOI: https://doi.org/10.1037/a0022676
Shen and Perera (2012). Diagnostic and Interactive Uses of Budgets and the Moderating Effect of Strategic Uncertainty. Asia-Pacific Management Accounting Journal, 7(4), 127-156.
Spreitzer (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Webology, 38(4),1442-1465. https://doi.org/10.5465/256865 DOI: https://doi.org/10.5465/256865
Ullah, M. (2020). Women Empowerment and Social Development in Afghanistan through Micro Finance. International Journal of Academic Research in business and Social Sciences, 10(12), 377-389. https://doi.org/10.6007/IJARBSS/v10-i12/8324 DOI: https://doi.org/10.6007/IJARBSS/v10-i12/8324
Ullah, M., Shaikh, M., Channar, P., & Shaikh, S., (2021). Financial forecasting: an individual perspective. International Journal of Management, 12(3), 60-69.
Ullah, M., Hamdard, M.N., (2019). CEO Duality and Risk: A Case of Textile Firms Listed on Pakistan Stock Exchange. North American Academic Research, 2(11), 122-131