NON FINANCIAL INDICATORS IN PERFORMANCE EVALUATION AND ITS IMPACT ON FINANCIAL PERFORMANCE ( CASE STUDY ON OIL AND GAS COMPANY IN RIAU PROVINCE)

Abstract

This study examined non financial indicators based on the concept of balanced scorecard to construct performance evaluation perspectives and then to evaluate financial performance of oil and gas company in Riau Province . Structural Equation Modeling (SEM) is applied to verify the cause-and-effect relationships among performance measurement perspectives and then to construct performance relation model. Samples in this study are finance manager , HR, production and information systems. Respondents include team leader, team mananajer and corporate managers. Prior to the first study conducted interviews with key informants to obtain information about performance measurement done . From the SEM analysis, the study finds that the performance perspective of learning and growth has a positive influence on the Intemal business process perspective; the intemal business process perspective has not influence on the customer perspective (partnership) These results indicate that learning and growth, and internal business perspectives have positive influence on the financial performance but customer perspective (partnership) not influence on financial performance.