Abstract

This study investigates how performance management systems, performance management practices, leadership style, organizational culture, top management support, and digital maturity influence organizational performance in the Indian information technology sector. Although prior studies have examined these variables independently, limited research has integrated them within a single framework while also comparing their effects across multinational corporations and local start-up firms. Addressing this gap, the present study develops and tests a comparative model using multi-group structural equation modeling. Data were collected through a structured questionnaire from 371 employees, including 192 respondents from multinational corporations and 179 respondents from start-ups. The measurement model demonstrated satisfactory reliability, convergent validity, discriminant validity, and overall model fit. The structural results reveal that organizational culture and the strategic alignment of performance management systems are the most consistent and significant predictors of organizational performance across both organizational contexts. Leadership style exerts a significant positive influence in multinational corporations, indicating the importance of structured leadership in formalized organizational settings. In contrast, performance management practices show a negative effect in start-ups, suggesting that excessive formalization may constrain flexibility, responsiveness, and innovation in entrepreneurial environments. Top management support and digital maturity do not show significant direct effects, implying that their contributions may operate indirectly through broader organizational mechanisms. Overall, the findings demonstrate that the effectiveness of management practices is strongly context dependent. The study contributes to performance management literature by offering an integrated and comparative perspective and provides practical guidance for managers seeking to design context-sensitive strategies that improve organizational performance in diverse IT environments.

Keywords

Performance Management Systems, Organizational Performance, Digital Maturity, Multi-Group SEM, Multinational Corporations, Start-Up Firms,

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