The inadequacies of traditional management accounting (MA) information indicate a need for management to find proper measuring tools for emerging nonfinancial performance (NFP) in the highly competitive financial services, as well as in the manufacturing industry. Thus, the role of MA in measuring the performances of emerging NFP has been receiving increased emphasis in the increasingly important service industries. Considering the shortcomings of the traditional MA information system, particularly the measurement of new emerging NFPs, this empirical research is an attempt to investigate the role of MA in nonfinancial as well as financial performance measurement (PM) in selected banks and financial institutions (BFIs) in Finland. The study demonstrates that the role of MA in nonfinancial PM is insignificant. However, management is paying more attention to its measurement. This study identifies three different aspects of NFP: profitdriven NFP; NFP for longterm competitive advantage; and independent NFP (those not linked with the profitability of an organisation).
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Economics, Econometrics and Finance(all)