The impact of key indicators on the overall performance of Saudi Arabian telecommunication companies
-
DOIhttp://dx.doi.org/10.21511/ppm.20(3).2022.16
-
Article InfoVolume 20 2022, Issue #3, pp. 192-203
- Cited by
- 785 Views
-
387 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Performance management helps organizations to ensure that they are on the right path. Thus, this requires increasing the ability of organizations to understand their own key indicators to manage and measure their performance. The purpose of this study is to determine the key performance indicators used in Saudi Arabian telecommunication companies. Moreover, it examines whether these indicators impact the overall performance of Saudi Arabian telecommunication companies. This study adopted a quantitative method based on a survey questionnaire. Participants were reached through human resources officers in the telecommunication companies. Questionnaires were distributed to 247 employees at middle and top management levels in Saudi Arabian telecommunication companies using a convenience sampling technique. However, 212 responses were returned completely filled with a response rate of 85.8%. This study used statistical software of SPSS and SmartPLS for data analysis. The results revealed that customer satisfaction, delivery reliability, learning and growth, employee satisfaction, cost, financial performance, flexibility, and quality are the key indicators used in Saudi Arabian telecommunication companies to measure performance. The results also revealed that customer satisfaction, delivery reliability, learning and growth, employee satisfaction, cost, financial performance, flexibility, and quality have an impact on the overall performance of Saudi Arabian telecommunication companies. These indicators can be used to determine the state of organizations, help measure the implementation of strategies, evaluate the organization’s current performance, design strategies for improvement, and evaluate organization’s departments and employees.
Acknowledgment
This paper was supported by the Deanship of Scientific Research, Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Saudi Arabia [GRANT348].
- Keywords
-
JEL Classification (Paper profile tab)M10, L96, L25
-
References62
-
Tables5
-
Figures0
-
- Table 1. Demographic information of respondents
- Table 2. Descriptive analysis of constructs
- Table 3. Internal consistency reliability and convergent validity
- Table 4. Discriminant validity
- Table 5. Hypothesis testing
-
- Aburumman, O., Omar, K., & Barhem, B. (2022). Joint Responsibility for Careers. Employee Responsibilities and Rights Journal, 1-22.
- Aburumman, O., Salleh, A., Omar, K., & Abadi, M. (2020). The impact of human resource management practices and career satisfaction on employee’s turnover intention. Management Science Letters, 10(3), 641-652.
- Ahmad, M., & Dhafr, N. (2002). Establishing and improving manufacturing performance measures. Robotics and Computer-Integrated Manufacturing, 18(3-4), 171-176.
- Alanne, K. (2021). A novel performance indicator for the assessment of the learning ability of smart buildings. Sustainable Cities and Society, 72, 103054.
- Al-Mamary, Y., Alwaheeb, M., Alshammari, N., Abdulrab, M., Balhareth, H., & Soltane, H. B. (2020). The effect of entrepreneurial orientation on financial and non-financial performance in Saudi SMES: a review. Journal of Critical Reviews, 7(14), 270-278.
- Almuqren, L., & Cristea, A. (2022). Predicting STC Customers’ Satisfaction Using Twitter. IEEE Transactions on Computational Social Systems (pp. 1-7).
- Al-Omari, Z., Alomari, K., & Aljawarneh, N. (2020). The role of empowerment in improving internal process, customer satisfaction, learning and growth. Management Science Letters, 10(4), 841-848.
- Amrina, E., & Yusof, S. (2011). Key performance indicators for sustainable manufacturing evaluation in automotive companies. 2011 IEEE international conference on industrial engineering and engineering management (pp. 1093-1097).
- Anaam, E., Magableh, M., Hamdi, M., Hmoud, A., & Alshalabi, H. (2021). Data Mining Techniques with Electronic Customer Relationship Management for Telecommunication Company. Amazonia Investiga, 10(48), 288-304.
- Ante, G., Facchini, F., Mossa, G., & Digiesi, S. (2018). Developing a key performance indicators tree for lean and smart production systems. IFAC-PapersOnLine, 51(11), 13-18.
- Bang, Y., Lee, D., & Lim, S. (2019). Analysis of corporate CO2 and energy cost efficiency: The role of performance indicators and effective environmental reporting. Energy Policy, 133, 110897.
- Bassen, A., & Kovács, A. M. (2020). Environmental, social and governance key performance indicators from a capital market perspective. In Wirtschafts-und Unternehmensethik (pp. 809-820). Wiesbaden: Springer VS.
- Bauman, C., & Skitka, L. (2012). Corporate social responsibility as a source of employee satisfaction. Research in organizational Behavior, 32, 63-86.
- Bouslah, K., Kryzanowski, L., & M’Zali, B. (2018). Social performance and firm risk: Impact of the financial crisis. Journal of Business Ethics, 149(3), 643-669.
- Carlucci, D. (2010). Evaluating and selecting key performance indicators: an ANP-based model. Measuring business excellence, 14(2), 66-76.
- Chatterji, A., & Levine, D. (2006). Breaking down the wall of codes: Evaluating non-financial performance measurement. California Management Review, 48(2), 29-51.
- Dipura, S., & Soediantono, D. (2022). Benefits of Key Performance Indicators (KPI) and Proposed Applications in the Defense Industry: A Literature Review. International Journal of Social and Management Studies, 3(4), 23-33.
- Donnelly, L. (2022). Evaluation of Factors Influencing Health Equity: Key Performance Indicators in Quality, Safety, and Service. Journal of the American College of Radiology, 19(1), 178-180.
- Dossi, A., & Patelli, L. (2010). You learn from what you measure: financial and non-financial performance measures in multinational companies. Long Range Planning, 43(4), 498-526.
- Etikan, I., Musa, S., & Alkassim, R. (2016). Comparison of convenience sampling and purposive sampling. American journal of theoretical and applied statistics, 5(1), 1-4.
- Fida, B., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of service quality on customer loyalty and customer satisfaction in Islamic banks in the Sultanate of Oman. Sage Open.
- Gosselin, M. (2005). An empirical study of performance measurement in manufacturing firms. International journal of productivity and performance management, 54(5/6), 419-437.
- Grosswiele, L., Röglinger, M., & Friedl, B. (2013). A decision framework for the consolidation of performance measurement systems. Decision Support Systems, 54(2), 1016-1029.
- Hair, J., Hult, G., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (384 p.). Thousand Oaks: Sage Publications.
- Hair, J., Risher, J., Sarstedt, M., & Ringle, C. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24.
- Heckl, D., & Moormann, J. (2010). Process performance management. In J. Brocke & M. Rosemann (Eds.), Handbook on business process management 2 (pp. 115-135). Berlin: Springer.
- Henseler, J., Hubona, G., & Ray, P. (2016). Using PLS path modeling in new technology research: updated guidelines. Industrial Management & Data Systems, 116(1), 2-20.
- Henseler, J., Ringle, C., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
- Hristov, I., & Chirico, A. (2019). The role of sustainability key performance indicators (KPIs) in implementing sustainable strategies. Sustainability, 11(20), 5742.
- Ishaq Bhatti, M., Awan, H., & Razaq, Z. (2014). The key performance indicators (KPIs) and their impact on overall organizational performance. Quality & Quantity, 48(6), 3127-3143.
- Jahangirian, M., Taylor, S., Young, T., & Robinson, S. (2017). Key performance indicators for successful simulation projects. Journal of the Operational Research Society, 68(7), 747-765.
- Jetter, J., Eimecke, J., & Rese, A. (2018). Augmented reality tools for industrial applications: What are potential key performance indicators and who benefits? Computers in Human Behavior, 87, 18-33.
- Jiang, S., Shi, H., Lin, W., & Liu, H. (2020). A large group linguistic Z-DEMATEL approach for identifying key performance indicators in hospital performance management. Applied Soft Computing, 86, 105900.
- Kadasah, N. (2014). An evaluation of service quality of Mobily and STC telecommunication companies in Saudi Arabia. Journal of Economics, Management and Trade, 4(10), 1599-1609.
- Karim, D., Majid, A., Omar, K., & Aburumman, O. (2021). The mediating effect of interpersonal distrust on the relationship between perceived organizational politics and workplace ostracism in higher education institutions. Heliyon, 7(6), e07280.
- Khalifa, M., & Khalid, P. (2015). Developing strategic health care key performance indicators: a case study on a tertiary care hospital. Procedia Computer Science, 63, 459-466.
- Khan, S., Hussain, R., Maqbool, M., Ali, E., & Numan, M. (2019). The mediating role of innovation between corporate governance and organizational performance: Moderating role of innovative culture in Pakistan textile sector. Cogent Business & Management, 6(1), 1631018.
- Kraus, S., Rehman, S., & García, F. (2020). Corporate social responsibility and environmental performance: The mediating role of environmental strategy and green innovation. Technological Forecasting and Social Change, 160, 120262.
- Krauth, E., Moonen, H., Popova, V., & Schut, M. (2005). Performance indicators in logistics service provision and warehouse management – a literature review and framework. Euroma international conference (pp. 19-22).
- Lee, S., & Lee, D. (2022). Effects of healthcare quality management activities and sociotechnical systems on internal customer experience and organizational performance. Service Business, 16, 1-28.
- Ma, Z., Shao, C., Ma, S., & Ye, Z. (2011). Constructing road safety performance indicators using fuzzy delphi method and grey delphi method. Expert systems with applications, 38(3), 1509-1514.
- Madushika, W., Perera, B., Ekanayake, B., & Shen, G. (2020). Key performance indicators of value management in the Sri Lankan construction industry. International Journal of Construction Management, 20(2), 157-168.
- Moktadir, M., Dwivedi, A., Rahman, A., Jabbour, C. J. C., Paul, S. K., Sultana, R., & Madaan, J. (2020). An investigation of key performance indicators for operational excellence towards sustainability in the leather products industry. Business Strategy and the Environment, 29(8), 3331-3351.
- Moons, K., Waeyenbergh, G., & Pintelon, L. (2019). Measuring the logistics performance of internal hospital supply chains – a literature study. Omega, 82, 205-217.
- Narkunienė, J., & Ulbinaitė, A. (2018). Comparative analysis of company performance evaluation methods. Entrepreneurship and sustainability issues, 6(1), 125-138.
- Neely, A., Gregory, M., & Platts, K. (2005). Erratum. International journal of operations & production management, 25(12), 1228-1263.
- Panicker, S., Nagarajan, H., Mokhtarian, H., Hamedi, A., Chakraborti, A., Coatanéa, E., Haapala, K. R., & Koskinen, K. (2019). Tracing the interrelationship between key performance indicators and production cost using Bayesian networks. Procedia CIRP, 81, 500-505.
- Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs. Hoboken: John Wiley & Sons.
- Phusavat, K., Kanchana, R., & Helo, P. (2007). Supplier management: past, present and anticipated future perspectives. International Journal of Management and Enterprise Development, 4(5), 502-519.
- Prajogo, D., Toy, J., Bhattacharya, A., Oke, A., & Cheng, T. (2018). The relationships between information management, process management and operational performance: Internal and external contexts. International Journal of Production Economics, 199, 95-103.
- Preacher, K., & Hayes, A. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior research methods, 40(3), 879-891.
- Reichmuth, D., Olstad, B., & Born, D. (2021). Key performance indicators related to strength, endurance, flexibility, anthropometrics, and swimming performance for competitive aquatic lifesaving. International Journal of Environmental Research and Public Health, 18(7), 3454.
- Rolstadås, A. (1998). Enterprise performance measurement. International Journal of Operations & Production Management, 18(9/10), 989-999.
- Salleh, A., Omar, K., Aburumman, O., Mat, N., & Almhairat, M. (2020). The impact of career planning and career satisfaction on employee’s turnover intention. Entrepreneurship and Sustainability Issues, 8(1), 218-232.
- Sarkheil, H. (2021). Risk and incident analysis on key safety performance indicators and anomalies feedback in south pars gas complex. Results in Engineering, 9, 100210.
- Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach (7th ed.) (448 p.). Hoboken: John Wiley & Sons.
- Siltaoja, M. (2009). On the discursive construction of a socially responsible organization. Scandinavian Journal of Management, 25(2), 191-202.
- Sinclair, D., & Zairi, M. (1995). Effective process management through performance measurement: Part II – benchmarking total quality-based performance measurement for best practice. Business Process Re-engineering & Management Journal, 1(2), 58-72.
- Singh, C., Soni, G., & Badhotiya, G. (2019). Performance indicators for supply chain resilience: review and conceptual framework. Journal of Industrial Engineering International, 15(1), 105-117.
- Toor, S.-u-R., & Ogunlana, S. (2010). Beyond the ‘iron triangle’: Stakeholder perception of key performance indicators (KPIs) for large-scale public sector development projects. International journal of project management, 28(3), 228-236.
- Wu, H.-Y. (2012). Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard. Evaluation and program planning, 35(3), 303-320.
- Zamanan, M., Alkhaldi, M., Almajroub, A., Alajmi, A. S., Alshammari, J. M., & Aburumman, O. J. (2020). The influence of HRM practices and employees’ satisfaction on intention to leave. Management Science Letters, 10(8), 1887-1894.