Non-financial performance measures and performance: examining the mediation role of innovation in an Indonesian stock exchange-listed organization

• Main Authors: Yuliansyah, Yuliansyah, Ahmad Razimi, Mohd Shahril
• Format: Article
• Language: English
• Published: Business Perspectives 2015
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/21927/1/PPM%2013%204%202015%20135%20144.pdf; http://repo.uum.edu.my/21927/; http://businessperspectives.org/journals/problems-and-perspectives-in-management/issue-48/non-financial-performance-measures-and-performance-examining-the-mediation-role-of-innovation-in-an-indonesian-stock-exchange-listed-organization

This study aims to investigate the effect of non-financial (NF) performance measures on individual performance through innovation in an organization listed on the Indonesian Stock Exchange. Analyzing with SmartPLS the usable data from a survey, the authors show that NF performance measures have a positive effect, fully mediated by innovation, on individual performance. It follows that to use NF indicators could enhance innovativeness and lead to the improvement of managerial performance. In other words, managers should take note of NF performance measures to enhance innovation that can lead to improved individual performance.