Abstract: In todays current market demands and globalization, companies need to constantly analyse their strategies in order to thrive and sustain their competitive positions. Among the strategies generally adopted by companies to enhance manufacturing performance are through implementing management accounting practices particularly, just-in time and the use of traditional and advanced Performance Measurement Systems (PMS). The implementation of these practices enable them to improve productivity as JIT focused on reducing and eliminating cost while PMS is a system that enables an organization to manage its performance and perform its strategy into deliverable results. Incorporating contingency theory, this study aims to examine the relationship between JIT practices and organizational performance and to determine the influence of PMS use in the relationship. Data were collected using self-administered questionnaire survey on a sample of Malaysian manufacturing companies. The results support the view that more extensive performance measurement system benefits performance as we find that, firms implementing JIT system with more advanced performance measurement systems, especially, those that include financial and nonfinancial measures have higher performance. The results revealed that the relationship is more significant for companies using more advanced PMS compared to companies that used traditional PMS.
Zarinah Abdul Rasit, Nurul Huda Abdul Satar and Aliza Ramli, 2018. Effect of JIT on Organisational Performance: Influence of Performance Measurement System. Journal of Engineering and Applied Sciences, 13: 2108-2113.