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The impact of a firm’s strategic performance measurement system (SPMS) on its customer-focused strategy, under varying contexts, has largely been documented in the literature. However, the system’s capacity to positively influence the firm strategy through its impact on the firm’s peculiar internal and external capabilities, in the peculiar context of the developing countries’ financial services sector, has so far skipped a thorough academic enquiry. This study, using Indonesia’ financial services sector as its ‘site’, aims to fill this void in the literature.

The authors gleaned the study’s empirical data from financial services sector firms using survey questionnaire and analyzed it using SmartPLS. A total of 107 valid responses from management members of different financial services sector firms in Indonesia were deemed useable.

The study findings support the paper’s main thesis. The findings revealed that the strategic PMS contributes to enhancing firms’ market orientation and robustness by positively contributing to their customer-focused strategy from three distinct dimensions – competitors, customers and organizational learning.

The authors posit that an effective customer-focused strategy can be accomplished by purposefully adapting the focus of the firm’s strategic PMS to positively influence the organizational learning, which subsequently translates into the firm’s high competitiveness in the marketplace.

The unexplored link between the SPMS, firm’s internal and external capabilities and customer-focused strategy in the particular context of a developing country’s financial services sector will not only fill the current void in the literature but also instigate a new academic debate. The study will also contribute to the management accounting practice in service firms in the developing countries context.

This study aims to investigate the extent to which interactive performance measurement systems (IPMS), self-profiling and job challenge can improve individual performance.

The authors study the service sector in companies listed on the Indonesian Stock Exchange. From 200 distributed questionnaires, they obtain 89 usable data points, which they analyse using SmartPLS.

The authors find that IPMS improves both self-profiling and job challenge. Both variables significantly boost individual performance.

This study implies that managers can open communication channels to a subordinate to increase individual self-profiling that leads to the improvement of job challenge to generate excellent performance.

This study investigates the importance of self-profiling and job challenge at middle- to lower-level employees in the service sector who receive less attention in the field of management accounting.