Executing strategy through comprehensive performance measurement systems

2017 ◽  
Vol 37 (4) ◽  
pp. 423-443 ◽  
Author(s):  
Pietro Micheli ◽  
Matteo Mura
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Company Performance ◽  
Content Type ◽  
Cost Leadership ◽  
Measurement Systems ◽  
Comprehensive Performance ◽  
Different Types ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance. Design/methodology/approach Survey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses. Findings This research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance. Research limitations/implications Further research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions. Practical implications Greater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy. Originality/value This study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.

Governmentality and performance for the smart city

2019 ◽  
Vol 33 (1) ◽  
pp. 204-232 ◽  
Author(s):  
Daniela Argento ◽  
Giuseppe Grossi ◽  
Aki Jääskeläinen ◽  
Stefania Servalli ◽  
Petri Suomala
Keyword(s):  
Performance Measurement ◽  
Smart City ◽  
Smart Cities ◽  
Research Question ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to explore the role of performance measurement systems as technologies of government in the operationalisation of smart city programmes. It answers the research question: how do the development and use of performance measurement systems support smart cities in the achievement of their goals? Design/methodology/approach This paper presents a longitudinal case study that uses an interventionist approach to investigate the possibilities and limitations of the use of performance measurement systems as technologies of government in a smart city. Interpretations are theoretically informed by the Foucauldian governmentality framework (Foucault, 2009) and by public sector performance measurement literature. Findings The findings address the benefits and criticalities confronting a smart city that introduces new performance measurement systems as a technology of government. Such technologies become problematic tools when the city network is characterised by a fragmentation of inter-departmental processes, and when forms of resistance emerge due to a lack of process owners, horizontal accountability and cooperation among involved parties. Research limitations/implications This paper is based on a case study of a single smart city, and outlines the need for both comparative and multidisciplinary analyses in order to analyse the causes and effects of smart city challenges. Originality/value This paper offers a critical understanding of the role of accounting in the smart city. The ineffectiveness of performance measurement systems is related to the multiple roles of such technologies of government, which may lead to a temporary paralysis in the achievement of smart city goals and programmes.

Association between performance measurement systems and organisational effectiveness

2014 ◽  
Vol 34 (7) ◽  
pp. 853-875 ◽  
Author(s):  
Bedanand Upadhaya ◽  
Rahat Munir ◽  
Yvette Blount
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Financial Services ◽  
Content Type ◽  
Services Sector ◽  
Measurement Systems ◽  
Organisational Effectiveness ◽  
Financial Services Sector ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate the role of performance measurement systems in organisational effectiveness in the context of the financial services sector within a developing country. Design/methodology/approach – Using the mail survey method data were collected from 69 financial institutions operating in Nepal. Multivariate analysis, in particular multiple regression analysis was employed to test the hypotheses. Findings – The results suggest that non-financial measures and feedback are tightly intertwined with organisational effectiveness. While institutions are focused on using the performance measures concerning internal business process perspective, less emphasis is placed on using customer and employee-related performance measures because they are considered less significant to organisational effectiveness. The findings also reveal that strategy-related feedback is considered more critical by management, as opposed to performance and staff. The study also provides evidence that 40.58 per cent of the financial institutions in Nepal had implemented the Balanced Scorecard, which is considered to be high when compared with other developing countries. Practical implications – The findings provide managers with valuable insights pertaining to the role of non-financial performance measures and the importance of feedback in improving organisational effectiveness, which could assist them in (re) aligning their performance measurement practices. Originality/value – The findings of this study contributes to the limited management accounting literature on performance measurement and the impact on organisational effectiveness by providing evidence from the financial services sector within the context of a developing country.

Characteristics of supplier performance measurement systems in collaborative innovation projects: the role of the purchasing department

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Andrea Patrucco ◽  
Federico Frattini ◽  
Anthony Di Benedetto
Keyword(s):  
Performance Measurement ◽  
Innovation Management ◽  
Content Type ◽  
Measurement Systems ◽  
Purchasing Department ◽  
Supplier Performance ◽  
Innovation Projects ◽  
Management Literature ◽  
Performance Measurement Systems

Purpose In the wake of the growing popularity of the open innovation approach, leveraging suppliers as external sources of innovation has attracted increasing interest from scholars and practitioners. Successful supplier involvement largely depends on an effective performance measurement process, but both supply chain management and innovation management literature have paid limited attention to this aspect. This paper aims to fill this gap by illustrating how companies measure the performance of the suppliers involved in their innovation projects and what role is played by the purchasing department. Design/methodology/approach This study interviews project stakeholders from nine different organizations acting as focal companies in the supply chains of various industries. This paper complements this on-field information with a vast amount of data collected from secondary project documents. Structured data coding and analysis allow us to discuss how companies redesign their performance measurement systems to ease the collaboration with suppliers in innovation and what factors underly these decisions. Findings The findings show that, in many cases, supplier performance measurement systems deviate from their typical characteristics to support collaboration in innovation projects. They integrate quantitative and qualitative measures, include contributions from different project stakeholders and are oriented toward high visibility and transparency with suppliers. A more substantial redesign of these systems is favored when purchasing is assigned to strategic project responsibilities and possesses higher absorptive capacity. Originality/value The results complement the knowledge for the supply chain management field, where supplier performance measurement systems have been discussed in the context of traditional buyer-supplier relationships, but not comprehensively in innovation projects and not considering the role of purchasing. Findings also contribute to the innovation management literature, which has mostly focused on what aspects need to be measured for innovation partners, rather than how to manage the performance measurement process in practice.

Fostering individual creativity in startups: comprehensive performance measurement systems, role clarity and strategic flexibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anderson Betti Frare ◽  
Ilse Maria Beuren
Keyword(s):  
Performance Measurement ◽  
Structural Equation ◽  
High Performance ◽  
Equation Modeling ◽  
Strategic Flexibility ◽  
Role Clarity ◽  
Content Type ◽  
Measurement Systems ◽  
Comprehensive Performance ◽  
Performance Measurement Systems

Purpose The purpose of this study is to investigate the effects of comprehensive performance measurement systems (PMS), role clarity and strategic flexibility on the individual creativity of founders/managers of startups. Design/methodology/approach The research population comprises 611 Brazilian startups in the e-commerce, retail and wholesale segments. One owner/manager of each startup was contacted by the survey, obtaining 91 valid responses. For data analysis, symmetric and asymmetric techniques were applied, respectively: partial least squares-structural equation modeling and fuzzy-set qualitative comparative analysis. Findings The findings show that the comprehensive PMS is an important predictor of individual creativity, role clarity and strategic flexibility. Role clarity has a direct effect on creativity and promotes partial mediation between comprehensive PMS and creativity. Comprehensive PMS and role clarity are of great importance and have high performance in favor of creativity, while strategic flexibility has high performance, but is of low importance. Several causal combinations promote high individual creativity. Practical implications It offers founders/managers an insight into the aspects that are worth of efforts to foster individual creativity in their startup. Originality/value The key contribution of the study is that the comprehensive PMS, which includes financial, non-financial and other measures for product and process innovation, can directly and indirectly (through role clarity) influence individual creativity.

scholarly journals Social media and performance measurement systems: towards a new model?

2016 ◽  
Vol 65 (2) ◽  
pp. 139-161 ◽  
Author(s):  
Yulia Sidorova ◽  
Michela Arnaboldi ◽  
Jacopo Radaelli
Keyword(s):  
Social Media ◽  
Performance Measurement ◽  
Performance Indicators ◽  
Measurement Methods ◽  
Future Research ◽  
Holistic Model ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
The Impact

Purpose – The purpose of this paper is to analyse how social media (SM) influence performance measurement systems (PMS), examining changes in measurement methods, performance indicators and their application. Design/methodology/approach – The framework of the research was constructed to cover the technical component of PMS (measurement methods and indicators) and the use of the information obtained from SM. Empirically, the study is based on a set of case studies in eight companies. Findings – The study findings offer a theoretical and empirical framework to evaluate PMS in the era of SM. It provides a classification of SM metrics, key performance indicators correlated to their use within different departments belonging to eight companies, highlighting the benefits and threats of SM information for PMS. Research limitations/implications – The limitation of this study is the diversity of industries included into the multiple-case study. The authors choose cases with the aim of providing a broader view on the impact of SM on PMS. However, the results show the dependency of use and type of measurement on certain industries, requiring future research focused on specific sectors or PMS aspects. Practical implications – The paper provides a map of SM information measurement methods and use, which allows companies to position themselves and examine PMS evolution. Originality/value – The results of the paper propose a holistic model, employing SM as a new variable in PMS.

The contingency of performance measurement systems in Moroccan public institutions and enterprises

2019 ◽  
Vol 27 (4) ◽  
pp. 613-632
Author(s):  
Mohammed Ibrahimi ◽  
Siham Naym
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Public Institutions ◽  
Performance Measurement System ◽  
Financial Indicators ◽  
Government Control ◽  
Contextual Variables ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose In the framework of contingency theory, this paper aims to study the contextual variables that influence the variety of the contents of a performance measurement system, specifically the use of non-financial indicators in Moroccan public institutions and enterprises (MPIE). Design/methodology/approach Aiming to study the factors which influence the use of financial and non-financial indicators within MPIEs, the authors attempted to identify all performance indicators used by the MPIEs in the sample. They selected 23 MPIEs with an industrial and commercial character and analyzed their reports for the period from 2010 to 2015. To evaluate the variety of performance indicators within these organizations, they used the multi-dimensional definition of performance recommended by Kaplan and Norton (1998) and used linear regressions to explain their relationship with the contextual variables. Findings Three hypotheses were developed regarding these contingency factors, predicting a positive relationship between the age, the size and the competitive environment of the organization, on one hand, and the use of non-financial indicators on the other hand. Following the study of MPIEs, the authors found that these organizations normally use financial indicators. However, the use of non-financial indicators is influenced by the age of the organization alone. Originality/value The scientific contribution of this paper is twofold: first, the authors seek to fill the gap in studies of performance measurement systems for MPIEs; second, they wish to enrich the scientific literature for underdeveloped countries which suffer from lack of data. Its managerial contribution is also dual: first, the authors aim to provide managers of MPIEs with a clearer understanding of non-financial measures that fully address the different management needs of their organizations; second, they encourage the government control using non-financial aspects alongside financial aspects.

scholarly journals Comprehensive performance measurement and management – innovativeness and performance through reflective practice

2017 ◽  
Vol 13 (3) ◽  
pp. 425-448 ◽  
Author(s):  
Juhani Ukko ◽  
Sanna Hildén ◽  
Minna Saunila ◽  
Kati Tikkamäki
Keyword(s):  
Performance Measurement ◽  
Reflective Practice ◽  
Performance Management ◽  
Theory And Practice ◽  
Organizational Practice ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
And Performance

Purpose The purpose of the study is to investigate how organizations can exploit performance management through reflective practice to foster innovativeness and performance. Design/methodology/approach A conceptual framework has been designed to link the studied concepts and to explicitly indicate current research gaps in the area. Moreover, the authors have conducted interventionist case studies to understand the interconnections between theory and practice. Findings This study showed that there are many possibilities with which to exploit performance management through reflective practice to foster innovativeness and performance. The study has three main implications. First, reflective practice can be learned and developed. Second, reflective practice is connected to innovativeness and performance. Third, performance management through performance measurement systems can assist in targeting the reflective practice. Originality/value New forms of performance measurement and management are receiving increasingly amount of attention, because the traditional forms of managing organizations do not fulfill the needs of rapidly changing environment. Prior studies maintain that a performance measurement and management supports the periodic execution of the same routines in organizations where changes are small or non-existent. In these forms, the role of reflection as an individual, collective or organizational practice is emphasized.

Managing both the empowering and constraining effects of performance measurement: a levers of control perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aurélien Ragaigne
Keyword(s):  
Performance Measurement ◽  
User Satisfaction ◽  
Longitudinal Case Study ◽  
Case Study Method ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
Levers Of Control

PurposeThis study aims to investigate the empowering and constraining effects of performance measurement. The levers of control perspective emphasises the fact that interactive processes play an important role in balancing these effects. This paper proposes to extend the analysis of effects in this literature, by looking at them in conjunction with the role of dialogue.Design/methodology/approachThis paper analyses a longitudinal case study of the use of user satisfaction indicators in the reception of a French local authority. The data were collected using a three-year longitudinal case study method from semi-directive interviews and participations at meetings.FindingsThe case study shows that performance measurement was introduced to encourage reception employees to make changes to the experience of service users. Employees were involved in the design phase of the survey and in the development of proposals. The dialogue approach represented a way of encouraging employees to agree to accept changes. However, this dialogue offered greater empowerment of employees by the managers.Research limitations/implicationsFurther work would be needed to enrich the characteristics of the dialogue and its effects on other performance measurement systems.Practical implicationsThe dialogue between employees and managers was designed to be interactive and created a situation with both empowering and constraining effects. The method of organisation, involving regular meetings with formal tasks to be accomplished at each meeting, appears significant for the evolution of the effects.Originality/valueWe extend the levers of control perspective to demonstrate the importance of the dialogue in balancing the effects. The case study makes it easier to understand how the empowering effects are related to the objective of constraint in the dialogue approach, and how these effects evolve.

Knowledge assets, capabilities and performance measurement systems: a resource orchestration theory approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaveh Asiaei ◽  
Zabihollah Rezaee ◽  
Nick Bontis ◽  
Omid Barani ◽  
Noor Sharoja Sapiei
Keyword(s):  
Performance Measurement ◽  
Corporate Performance ◽  
Equation Modeling ◽  
Knowledge Assets ◽  
Content Type ◽  
Knowledge Resources ◽  
Measurement Systems ◽  
Resource Orchestration ◽  
Performance Measurement Systems ◽  
The Relationship

Purpose The pivotal role of knowledge management (KM) and its extensive implications have been debated in the academic literature with insufficient focus on its link to particular organizational control mechanisms such as performance measurement systems (PMS). To bridge this gap and building on resource orchestration theory, this paper aims to investigate the relationships between KM factors, PMS and corporate performance. Design/methodology/approach Based on a survey data set of 92 listed companies in Iran, the framework and hypotheses were tested using structural equation modeling (SEM) based on partial least squares (PLS). Findings The SEM-PLS results indicate that knowledge assets are significantly associated with both PMS and corporate performance while knowledge process capabilities (KPC) are not significantly associated with PMS and corporate performance. This study also shows that PMS mediates the relationship between knowledge assets and corporate performance. Practical implications The results suggest that the use of appropriate management control systems plays an effective role in synchronizing, aligning and orchestrating a company’s various knowledge resources, which, in turn, can lead to superior overall performance. Originality/value Building on a unique synthesis of resource orchestration theory and the knowledge-based view of the firm, the results of this study provide the first empirical evidence on how PMS intervenes in the relationship between knowledge resources (knowledge assets and KPC) and corporate performance.

The mediating role of fairness on the effectiveness of strategic performance measurement systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin Baird ◽  
Sophia Xia Su ◽  
Nuraddeen Nuhu
Keyword(s):  
Performance Appraisal ◽  
Human Resource ◽  
Performance Measures ◽  
Content Type ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Mediating Role ◽  
Performance Measurement Systems ◽  
Insight Into

PurposeThis study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs) with SPMS effectiveness.Design/methodology/approachData were collected using an online survey distributed to 656 Australian middle and lower level managers.FindingsThe findings reveal that informational fairness mediates the association between SPMSs (link to value drivers and the use of multidimensional performance measures) with performance-related outcomes; procedural fairness mediates the association between SPMSs (link to strategy and the use of multidimensional performance measures) with staff-related outcomes and distributive fairness mediates the association between the use of SPMSs (all three types) with both performance and staff-related outcomes.Originality/valueThe study provides a unique insight into the importance of fairness (the distributive, informational and procedural fairness of the performance appraisal system) in mediating the associations between the extent of use of SPMSs and SPMS effectiveness. The findings contribute to the human resource management (HRM) “black box” literature by providing an insight into the behavioural mechanism through which a specific human resource management practice (i.e. the SPMS) influences organisational performance.

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