Abstract—Performance measurement system (PMS) is one of the main functions in management roles and reflects the strategic goals of firms. PMS particularly support the management control system (MCS) to manage increasing complexity. Traditionally, PMS models are more horizontal; process oriented and focuses on stakeholder needs. Therefore, it is interesting to consider MCS in designing PMS to overcome the weakness of traditional PMS and to improve overall performance. Specifically, the objective of the study is to investigate the role played by the MCS in the PMS design in the context of the Malaysian SMEs hotels. The study employs contingency theory and using four Simons’ levers of control as intervening variables to explain the relationship. Data is collected by survey at small medium hotel sectors in the Northern part of Peninsular Malaysia. The study found that PMS is correlated to an each of the four selected individual management control system (MCS) and also suggest that the development of PMS will influence the overall performance in small medium hotel sector through the acting of MCS.
Index Terms—Performance measurement system, management control system, SMEs hotel.
Che Zuriana Muhammad Jamil is with Universiti Utara Malaysia (email: email@example.com).
Cite:Che Zuriana Muhammad Jamil and Rapiah Mohamed, "The Effect of Management Control System on Performance Measurement System at Small Medium Hotel in Malaysia," International Journal of Trade, Economics and Finance vol. 4, no. 4, pp. 202-208, 2013.