Management Systems Fit For Organizational Performance

The present study identifies the dimensions and variables using prior research within each of the constructs under the management systems, fit and, organizational strategy, structure, lifecycle and performance. The constructs from the research model were defined with a combination of direct, calculated and coded measures. Context analysis for each case categorized management systems design into either prescriptive or descriptive. The selected performance measures have been extensively investigated in the research fields associated with organizational management. The study uses the multiple case study design with cross-sectional data spanning from 1991 to 2005 and involving 19 aerospace companies in the United States. A priori hypothesized relationships between the constructs were tested with Mann-Whitney procedures for differences between mean ranks associated with organizational performance measures. The results from Mann-Whitney tests suggest that there exist significant differences in organizational performance from fit factors between a management system design and the organization. Present study defined organizational performance measures for analysis in terms of Return on Assets, Return on Equity and Return on Investment. When compared to a prescriptive management system design, a descriptive management system design was associated with higher levels of organizational performance. Cases with a fit state were found to score significantly higher than cases with unfit state suggesting that a correct fit state is associated with higher levels of organizational performance. A fit state was associated with higher levels of performance when each of the organizational factors for strategy, structure and lifecycle were aligned to management system design. Study results suggest equifinality as cases reached a particular fit state with differing combinations of fit factors. The study contributes to the field with interpretation of a fit model and key relationship between management systems and performance providing the base for future research efforts associated with management systems, organizational factors and the fit between them