No abstract

This study explores managerial behavioral responses associated with the extent to which a firm's performance measurement system is linked to its strategy (SPMS). We hypothesize that an SPMS is positively associated with higher levels of job-relevant information (JRI) and lower levels of role stressors, which are then associated with higher levels of managerial performance. Using survey data from over 700 respondents, we find that an SPMS positively affects performance through its relations with JRI and role ambiguity (RA). Managers perceive that they have higher levels of JRI and lower levels of both role conflict (RC) and RA when they have an SPMS closely linked to strategy. In turn, performance is higher when managers perceive that their RA is lower. Additionally, we find that the link to the evaluative process, complexity, and managerial experience moderate the relations between an SPMS and JRI, RA, and RC.

Strategic performance measurement systems (SPMS) that translate a firm's strategy to its employees are increasingly used. We examine whether the extent to which an SPMS is coupled with strategy affects employee performance indirectly through motivational characteristics including perceived self-efficacy and perceived psychological contract. Using data from 242 employees, we find evidence that the extent to which an SPMS is tightly coupled with strategy affects employee performance through perceived self-efficacy and perceived psychological contract. Self-efficacy is a critical dimension of intrinsic motivation. Thus, an implication of our findings is that tightly coupling an SPMS-based incentive plan with strategy facilitates internalized motivated behaviors. We also find that our hypothesized results hold across varying levels of two types of employee climate. However, the workforce's age and education levels serve as boundary conditions since we find that the relation between self-efficacy and employee performance holds only for the older, less-educated employees. Data Availability: Data used in this study cannot be made public due to a confidentiality agreement with the participating firm.

Accounting information systems (AIS) research data may suffer from severe non-normality, which, if not handled properly, may lead to incorrect statistical inferences. To address this problem, we empirically evaluate the relative merits of a Two-Step normality transformation proposed by Templeton (2011) compared to four alternative distributions available to researchers (random-normal, original, natural log transformed, and winsorization transformed). Using 45 corporate financial performance ratios (CFP), we investigated three perspectives on measurement validity: construct validity, reliability, and difference testing. We then examined the efficacy of the Two-Step method in the context of business value of IT research—we regressed four IT investment and three control variables on 31 of theoretically relevant CFP indicators. The preponderance of our evidence shows that the Two-Step method consistently outperforms the prominently used alternatives in achieving statistical normality, retaining original series means and standard deviations, exhibiting validity and reliability, and theory testing. Our findings strongly suggest that AIS researchers consider adopting the Two-Step normality transformation when utilizing non-normally distributed data to obtain a more accurate understanding and interpretation of results.

No abstract

A performance measurement system (PMS) consists of data transformed into performance measures, which is used to control operations and employee behavior. As such, a PMS is embedded within the broader accounting information system (AIS). Existing literature suggests organizations benefit from using a PMS in a way that employees perceive enables them to better perform their job tasks. However, those benefits may not always be realized depending on individual and unit-level ethical characteristics that interact with the use of AIS. The purpose of this study is to examine the intersection of AIS and business ethics by focusing on how a specific type of AIS is used; namely, the PMS. We integrate the extent of perceived amoral manipulation and the ethical work climate with the extent to which the PMS is perceived to be enabling. We document instances when the enabling use of a PMS is not always beneficial, offer implications for organizations in terms of managing the level of counterproductive work behaviors when using enabling control, and provide directions for future research.

This paper introduces system comprehensiveness, a variable reflecting the diversity of performance measurement (PM) categories captured in a PM system. Using this variable, we synthesize the information systems and management accounting literatures into an integrated model of PM systems. Based on survey responses from 646 experienced financial managers, our integrated model results provide evidence that system comprehensiveness partially explains how participation leads to job-relevant information. Furthermore, our findings indicate that system comprehensiveness is associated with employee outcomes through the mediating effect of jobrelevant information. These results suggest that organizations benefit from PM systems that incorporate a broader set of measures. Also, by linking the two research streams, this paper provides a richer understanding of how participation improves employee outcomes. Along this line, we identify a variety of future research opportunities that, if approached from a cross-disciplinary perspective, could further enhance our understanding of PM systems.

Students often enroll in the managerial principles class because of a degree requirement rather than a burning passion to learn the subject matter. Through active learning, new content can become more interesting by involving students in their own learning. This paper offers accounting faculty four active learning activities to engage students and enhance their understanding of difficult concepts: managerial accounting terminology, activity-based costing, variance analysis, and special order decision-making. During these in-class activities, students work through relevant computations and delve into additional considerations using guided class discussions. A survey of students' attitudes reveals that students perceive that these active learning activities had a positive impact on their content knowledge related to the managerial principles course, as well as their attitude toward and interest in the class. In addition, students felt that the activities were worthwhile and demonstrated the concern their instructor had for quality teaching. The accompanying Teaching Notes contain detailed, step-by-step guidance for implementing the four activities, along with sample solutions.