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This study adopted PMS use typology by Henri (2006) to be applied at individual level analysis. Upper echelon theory (UET) is used as the underlying principle in developing the model of the study. UET suggested personal characteristics such as expertise and specialization are crucial in dealing with complex and complicated decision making process and consequently affect performance.
Data were collected through mail questionnaire from 100 operation managers of manufacturing firms. Path models were analyzed using structural equation model (SEM). Findings indicate the level of managers’ professionalism positively affects the use of PMS for attention focus and strategic decision making. Result also suggests that the use of PMS for strategic decision making positively affect managerial performance. In addition, results indicate that PMS use for strategic decision making has mediating effect on the relationship between professionalism and managerial performance. This study provides new insight into the improvement of PMS by considering individual element such as level of professionalism of managers and contributes to the body of knowledge by providing new empirical evidence, at the same time helping manufacturing industry to reexamine their system from individual perspectives.
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