CONCEPTUAL REVIEW OF MULTIDIMENSIONAL PERFORMANCE OF FINANCIAL INSTITUTIONS

Abstract

The performance measurement system is crucial for any kind of business to assess their success. It is an indicator of the level of competitiveness and dynamism of the business. One important aspect of a performance measurement tool is that the performance measures of the measurement system have to be relevant, to provide timely information and to match the internal and external attributes of the organization for long-term survival. Literature and empirical tests have indicated that the performance measures have to link with organizational factors. The multidimensional performance measurement consists of financial and non-financial measures are necessary to overcome the traditional measures. The traditional measures are financial oriented is lack measuring the other dimension strategically important. This conceptual paper discusses the significant of financial institutions measuring the performance using the multidimensional measures. The discussion includes to the extent of use the multidimensional measures in the context of Malaysian Financial institutions and provides the research proposition for future research.