Interactive Use of Performance Measurement Systems and its Impact to Firm Performance: Evidence from West Java Province Local-Owned Enterprise, Indonesia

We analysed the influence of the interactice use of performance measurement systems/(IPMS), organizational commitment/(OC), and effectiveness innovation type/(EIT) on the firm performance. Then, the extent to which that who have organizational commitment and effectveness innovation type as an intervening variables. We study the West Java Local-Owned Enterprise, Indonesian. From 146 distributed questionnaires, we obtain 69 usable data points which we analyse using Path-Analysis. We indicated that IPMS, organizational commitment, effectveness innovation type have positive and significantly effect on firm performance. Other word, we suggested that organizational commitment and effectveness innovation type as an inetrvening variable in the relationsip between IPMS and firm performance. This result implies that managers can open communication linness to subordinate to increase IPMS that lead to the improvement of OC and EIT in order to generate operational effectveness and performance. This research confirms that IPMS and OC should be increase implementation of EIT to encourage the employee’s motivation to creation by day to day in gaining firm strategic competitiveness. This research have confirmatory the importance employed of IPMS, OC, and EIT at middile to lower level employees in the Goverment Local-Owned Enterprise. I thing that less seriously in the decade were field of management accounting/performance measurement systems.


Introduction
Increasingly, local-owned enterprise will focus of government support in order to as supplier of city car transportation, water treatment, healthy care facility of hospital, carbage clean of city, financing low cost, social security, public services, financing performing unit business, etc. That's would be continued of performed extent to which for the community at West Java Province. So its is government liability by year to year because governmental will responsibility and consistence to be for any people. But sametime its is liability the nature provides few unsertaint and incontinue. Simons R. L. (1995a) argue that, damage a company integrity could be affecting by a fundamental problem facing managers and how to exercise adequate control in organizations that demand flexibility, innovation, and creativity. Much of the empirical research to date has focus on the role of accounting as a diagnostice tool for assessing and rewarding managerial performance despite the recognition that accounting can serve as a dialogue, learning and idea creation machine Burchell et al. (1980). Simons R. L. (1990) offers one possible explanation for the apparent inconsistencies in the literature. He argues that prior research has been preoccupied with studying the extent to which the importence of MACS in their traditional role of performance evaluation, or what he refers to as their diagnostic role Simons R. L. (1990), Simons R. L. (1991). Simons R. L. (1992) ;Simons R. L. (1995a) argue that, managers rely on accounting information useful to their decision making and control functions and managers promote innovation. Ongoing the firm will evaluation for the feedback of the innovation effectiveness and strategic implemetation (Abernethy and Brownell, 1999). For example, extence to which: how to measure of performance, when the interactive use of performance measurement systems implies. Diagnose the practical problems a government organization encounters when implementing a performance management and performance budgeting system in public services (Webb and Candreva, 2010).
Innovations is a key strategic attribute of organizations and has the potential to create competitive advantage (Subramaniam and Mia, 2003). The more rapid the competition in markets and change in technoloty, the greater is the need for innovation within organizations that's a potential challenge. Interactive use of performance measurement systems and effectiveness of innovation would like encounter on top management its is call organizational commitment persue that to competitive advantages of the management performance and firm performance will increase.

Interactive Use of Performance Measurement Systems
Based on Abernethy and Brownell (1999) and Simons R. L. (1995a) ;Simons R. (2000) prior researcher to suit in order to measurement of instruments construct of interactive use of performance measurement systems argue that extensively conceptualize has defined and used. In this study our adopted of the perceptions and encounter will explainations.
The interactive use of budgeting provides a vehicle for the top management to reveal their values and preferences to organization members (Simons R. L., 1991). It enables the interchange of information concerning the opportunities, threats, strenght and weaknesses that exist as the organization reorientation itself in the market. The interactive use of budgets, with its focus on dialogue, communication and learning, between top management and subornates as well as among manager at the same level, is consistent with the operation of cross-functional liason groups.
Simons R. L. (1995a); Simons R. (2000) claims that the interactive use of performance measurement leads to improvement in learning for the organizational members. Analysis of this claim leads us to acknowledge that the use of interactive performance measurement system within the organization serves as a stimulus for the members of the organization to pursue learning in their field of expertise and enhance their professional dexterousness; the organizational members professional and skills development, in turn, guides them to deduce a more effective business strategy and better reorient it to their customers.
As Abernethy and Brownell (1999) to suit this study's requirements and asked questions about the performance management system these organizations employed, the nature of interaction between different levels of management, and the level of communication and debate between these levels of the organizational hierarchy.

Organizational Commitment
Definning of organizational commitment in this study adopted the attitudinal view of organizational commitment; it was defined as identification with and acceptence of their organizational goals and value, their willingness to exert considerable effort on behalf of the organization and their desire to maintain organizational membership (Iftikhar et al., 2016;Monday et al., 1982). Thus, for the variable operationalization our refer by Meyer and Allen (1991) argue that have three component conceptualization of organization commitment, these dimensions of affective commitment, normative commitment, and continuance (rational) commitment. Gunday et al. (2011). argue that innovativeness has been touted as one of the fundamental instruments of growth strategies to enter new market, to increase the existing markert share and to provide the company with a competitive edge. Motivated by the increasing competition in global markets, companies have started to graps the importance of innovation, since swiftly changing technologies and severe global competition rapidly erode the value added of existing products and services.

Effectiveness of Innovations Type
Innovations is driven by the ability to see connections, to spot opportunities and to take advantage of them (Tidd and dan Bessant, 2014). Four dimensions of innovation space will focus on broad categories in this study: product innovation, changes in the things (products/services) which an organization offer; process innovation, changes in the ways in which they are created and devivered; position innovation, changes in the context in which the products/services are introduced; and paradigm innovation, changes in the underlying mental model which frame what the organization does (Shafiq et al., 2018).

Firm Performance
Evaluation and control information must be relevant to what is being monitored. One of the obstacle to effective control is the difficulty in developing appropriate measures of important activities and outputs, and then performance is the end result of activity (Wheelen et al., 2015). In according with previous research (Gupta and Govindarajan, 1984;Mahoney et al., 1963;1965) a long multiplicity of dimension rahter than on any single dimension, in arriving at a measure of overall effectiveness. Thus, in this study measurement instruments our refer to develop by (Mahoney et al., 1963;1965).

Hypothesis Development
According to research questions and leterature review, our would like concluded that have positive and significant the relationsip between interactive use of performance measurement systems, organizational commitment, effectiveness of innovation and firm performance. Performance measuremen systems can improve of the organizational commitmen, will create of the innovation effectiveness in the organization, and ongoing the organizations in order will reciept of the target and firm performance. Previouw research has suggested have correlation between innovation type and firm performance (Atalay et al., 2013;Kalkan et al., 2014;Mensah and Acquah, 2015;Ting et al., 2012) . Using tool of interactive use of budget and performance measurement systems would be increase effectiveness and top management commitment in the organization (Abernethy and Brownell, 1999;Monday et al., 1982;Simons R. L., 1990;1991;1992;Subramaniam and Mia, 2003). In the conterparth of the organization should be to promote outside on the market have important implications for designing appropriate manangement commitment, because, that's would like encourage and encompass of the firm to be effectiveness of the operations. Simons R. L. (1992); Simons R. L. (1995a); Simons R. L. (1995b) argue that, managers rely on accounting information useful to their decision making and control functions and managers promote innovation. In relevant research, Russell and Russell (1992) contend that as organization promote more innovative value, employees prefer more organic structurcs and participative management processes. Organizational commitment which relates to an employee's feelings, identification, work hard and involvement in a particular organization (Meyer and Allen, 1997;Porter et al., 1976). An employee's loyalty to the firm relates to genuine acceptance and preparedness to work hard so as to attain the firm's goals.
This reasoning suggests the following hypothesis relating to the interactive use of performance measurement systems, organizational commitment, effectiveness of innovation and firm performance is formulates: Ha: There is a positive relation between interactive use of performance measurement systems, organizational commitment, effectiveness of innovation and firm performance,

Methodology
Data were gathered by a survey research method that involved the administration of a written questionaire to a sample and units analysis of finance manager and operational manager. Questionaires were distributed and returned by mail. The potential respondence were Local-Owned Enterprise, West Java Province, Indonesian of 73 firms, that are strategic business unit have fully support by government. From 146 distributed questionnaires, we obtain 69 usable data final and Path-Analysis were used. The reliability and validity test of the questionaires instruments and measurement of construct would be employed and referencing by Nunnally (1978) and Kaiser and Rice (1974). The questionaires instruments and measurement of construct were formulated as follow: Interactive Use of Performence Measurement Systems. The questionaires instruments and measurement of construct were adapted the questionnaire used by Abernethy and Brownell (1999) to suit this study's requirements and asked questions about the performance management system these organizations employed, the nature of interaction between different levels of management, and the level of communication and debate between these levels of the organizational hierarchy. Respondents were asked these questions of five items on the 5 point Likert scale (very disaggreed to very aggreed). Because, according to Simons R. L. (1995a) ;Simons R. (2000) interactive control system is resorted to by managers to communicate, debate and question decision-making within the organization at both horizontally and vertically, and interactive use of performance measurement system was measured by a multi-scale instrument developed by Abernethy and Brownell (1999), which has been extensively used.
Effectiveness Innovation Type. The questionaires instruments and measurement of construct were adapted from the four dimensions of innovation space: product (service) innovation, process innovation, position innovation, and paradigm (mental model) innovation by Tidd and dan Bessant (2014). The four dimension will develop and adjust to relevant within the local-owned enterprise, throught we compile and were asked these questions of six items on the 5 point Likert scale (very low to very hight).
Organizational Commitment. The questionaires instruments and measurement of construct were adapted from the three component conceptualization of organization commitment, these dimensions of affective commitment, normative commitment, and continuance (rational) commitment by Meyer and Allen (1991) . After develop and adjust to relevant within the local-owned enterprise were asked these questions of six items on the 5 point Likert scale (very disaggreed to very aggreed).
Firm Performance. The questionaires instruments and measurement of construct were the extent to wich the organization have accomplised their job effectively, and the following organization activities developed by Mahoney et al. (1963); Mahoney et al. (1965). The measure provides eight sub-dimension of performance and a ninth dimension as an overall rating. That's were asked these questions of nine items on the 5 point Likert scale (very poor to excellent).

Results and Findings
Based on statistic data were analyzed correlationship between among variable show in tabel 1 and attachment too of discriptive statistics mean and standard deviation. Based on table 1 were analyzed relationship between among variable show their indicates that interactive prformance measurement systems have positive and significant between organizational commitment and effectiveness innovation type, and have not correlation between firm performance, and then the tabel 1 as a attachment too of the discriptive statistics mean and standard deviation.   According to table 3, researcher playback on the topic is Interactive Use of Performance Measurement Systems and Its Impact to Firm Performance: Evidence from West Java Province Local-Owned Enterprise, Indoensia. Checkout to the path-analysis result on its direct effect, we would like concluded that the fourth step result have positive and significant effect on its all directions "IPMS on the OC, OC on the Innovations, IPMS on the Innovations, and Innovations on the Firm Performance" were confirmed. Show that, we will restatement of interactive use of performance measurement systems and its impact to firm performance: evidence from west java province localowned enterprise, indoensia were confirmed.
The findings from the procedures involved in path analysis was carried out and all-out direct effects have positive and significant with the F-test and t-test that signicancy, we conclude that Ha was supported. At the same time, our concluded this findings suggested relevant which in the previous research. Actually, we to provide soma explainatory remarks of the results. The results as show in table 3 indicate that coefficient, b1 0.697, was significant for IPMS affecting of the organizational commitment, that's supports Simons R. L. (1992); Simons R. L. (1990); Simons R. L. (1991); Abernethy and Brownell (1999); Subramaniam and Mia (2003) and Monday et al. (1982). The b2 0.657, was significant for OC affecting of the innovations types, the evidence supports Porter et al. (1976) and Meyer and Allen (1997). The b3 0.681, was significant for IPMS affecting of the innovation types, the result supports Russell and Russell (1992); (Simons R. L., 1990); Simons R. L. (1992); Simons R. L. (1995a); Simons R. L. (1995b) and Meyer and Allen (1997). The b4 0.460, was significant for innovations types affecting of the firm performance, the finding supports Ting et al. (2012); Kalkan et al. (2014); Atalay et al. (2013); and Mensah and Acquah (2015).
The illustration for the local-owned enterprise, that's was involvement of the interactive use of IPMS; affective, normative and continuance commitment; product/service, process, position and paradigm innovations. While control systems effectively and empowerment, could be stimulus of an employee's loyalty to the firm relates to genuine acceptance and preparedness to work hard so as to attain the firm's goals, that's was correlated with the independent variables. When the performance measuremen systems was used, would be improved of the organizational commitmen, will be create of the innovation effective in the organization and ongoing the organizations at same time in order will reciept of the target and firm performance.

Conclusion
The finding research is interactive use of IPMS, top management commitment on the strategic plan, and involve of the four innovation dimension would like very important for any company and corporations, including localowned enterprise, because multiplicity implication for the ongoing organizations and may be to for the meeting of the firm performance target. In the other way, future reasearcher would like exploratory in this topic for the validation of the limitation findings of IPMS and its impact to firm performance.