Evaluating investment centre performance: an overview on Sarawak based private limited companies practices / Hesan Roseri

This paper examines the extent of the use of divisionalisation concept in practice by Sarawak based private limited companies as a result of their expansion and diversification programmes. In addition, the study also investigates the methods of evaluation used by the companies to measure the performance of their investment centres and to ensure individual’s goals of the centres are congruent with those of organisation. The results of a number of past studies reveal that most large and diversified companies tend to resort to divisionalisation as a mean to improve decision-making process and efficiency. A majority of the companies prefer to use ROI as a method of evaluating the performance of the investment centres. The preference of ROI over other methods of evaluation can be related to its superiority and advantages associated with it. The empirical evidence discussed in this paper is based on Sarawak based private limited companies in the selected majors sectors of the economy.