Managers' Commitment to the Goals Contained in a Strategic Performance Measurement System*

Webb, Rick

doi:10.1506/khw0-g7py-aqea-718j

Cited by 87 publications

(9 citation statements)

References 51 publications

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“…A distinguishing characteristic of SPMS is the inclusion of multiple performance measures and objectives that describe an organization's strategy (e.g., Kaplan and Norton 2001;Webb 2004;Chenhall 2005a). The BSC framework, a widely studied and utilized form of SPMS, offers a means of describing an organization's strategy and facilitating a shared understanding of this strategy among organizational members (Malina and Selto 2001;Kaplan and Norton 2004).…”

Section: The Bsc Framework and Managers' Strategic Judgmentsmentioning

confidence: 99%

The Differential Improvement Effects of the Strategy Map and Scorecard Perspectives on Managers' Strategic Judgments

Cheng

Humphreys

2012

The Accounting Review

104

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This study examines the effect that two key balanced scorecard (BSC) framework elements-causal linkages between strategic objectives in the strategy map and performance measures categorized by scorecard perspective-have on managers' ability to interpret the strategic relevance of external information and use this information to evaluate the appropriateness of an organization's strategy. We conduct two experiments, finding that presenting a set of strategic objectives as a strategy map enhances both managers' information relevance and strategy appropriateness judgments. We attribute this improvement to the explication of causal linkages between objectives in a strategy map. In contrast, presenting performance measures categorized by scorecard perspective only improves managers' strategy appropriateness judgments when the managers are provided with a set of strategic objectives that are not presented in a strategy map structure. Our study contributes to the literature by demonstrating that these two elements of the BSC framework have differential decision-facilitating impacts on managers' strategic judgments.

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Section: The Bsc Framework and Managers' Strategic Judgmentsmentioning

confidence: 99%

The Differential Improvement Effects of the Strategy Map and Scorecard Perspectives on Managers' Strategic Judgments

Cheng

Humphreys

2012

The Accounting Review

104

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“…Performance measurement systems (PMSs) play a crucial role in enhancing an individual’s motivation. Researchers have agreed on the effect that PMS has on motivation from the perspective of individual behavior ( Godener and Söderquist, 2004 ; Webb, 2004 ; Decoene and Bruggeman, 2006 ; Hall, 2008 ; Franco-Santos et al, 2012 ; Appuhami, 2019 ). These studies demonstrate that PMS as an effective communication mechanism enhances participation, dialogue and feedback, and contribute to stimulating motivation.…”

Section: Introductionmentioning

confidence: 99%

“…Whilst existing literature has focused mainly on the consequences of PMS in terms of organizational capabilities and performance ( Chenhall, 2005 ; Henri, 2006b ; Mundy, 2010 ), they contain little information concerning the effect of PMSs on individual behavior, and little empirical evidence to support the association between PMS, psychological empowerment and creativity. Particularly, the studies have only investigated the impact of PMS on individual’s behavior in terms of role ambiguity, perception of justice, trust, goal commitment and organizational citizenship behavior ( Webb, 2004 ; Burney and Widener, 2007 ; Burney et al, 2009 ; Franco-Santos et al, 2012 ). Comprehension is lacking on how PMS usage influences the psychological empowerment of managers, which, in turn, improves creativity and performance.…”

Section: Introductionmentioning

confidence: 99%

“…When PMSs are used interactively, continual debate and communication occur throughout the organization, manager empowerment is fostered, which leads to greater manager creativity. Moreover, prior research has highlighted that the role of PMS, as it is the resultant performance measures that yield motivational benefits according to cognitive-based psychological theory (Malina and Selto, 2001;Webb, 2004;Hall, 2008). For instance, Simons (1995) argued that different uses of PMS can generate different psychological consequences.…”

Section: Introductionmentioning

confidence: 99%

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Cultivating organizational performance through the performance measurement systems: Role of psychological empowerment and creativity

2023

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Interactive performance measurement systems (PMSs) play a critical role in shaping individual behavior and performance. To identify the underlying mechanism of how PMSs enhance organizational performance, a proposed model was constructed to investigate psychological empowerment and employee creativity as possible mediating variables. Based on a sample of 211 managers from Chinese organizations, a partial least squares structural equation modelling (PLS-SEM) approach was used to examine the mediating effect presented in the aim. Interactive use of PMS has a positive and direct impact on psychological empowerment. Psychological empowerment positively influences creativity, which, in turn, positively influences organizational performance. The findings also show that psychological empowerment and creativity mediate the impacts of interactive use of PMS on organizational performance. Our study highlights the role of PMSs, and how to use them interactively in turbulent environments. Particularly, we demonstrate that interactive use of PMS is important for facilitating a manager’s sense of psychological empowerment and fostering creativity, which, in turn, contributes to better performance and greater competitive advantages.

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“…Therefore, research is needed to examine aspects of behavior related to performance measurements. Previous studies (Webb, 2004) found that managers will concentrate on the measured performance; therefore, it is necessary to implement an appropriate performance measurement that drives managers to achieve the company’s economic, social and environmental goals. Related to CSR, the research shows that CSR investment is higher when performance measures rely more on non-financial performance measures than financial measures (Church et al , 2019).…”

Section: Introductionmentioning

confidence: 99%

The effect of regulatory focus and performance measurement on corporate social responsibility investment decisions

Rokhayati

Sholihin

Supriyadi

et al. 2021

SRJ

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Purpose This paper aims to investigate the relationship between regulatory focus, performance measurement and corporate social responsibility (CSR) investment decisions. Design/methodology/approach Using an experimental method with a 2 × 2 between-subjects factorial design involving 144 participants, the data were analyzed using t-test and contrast test. In the experiment, the authors assigned participants into prevention focus or promotion focus group and complementary performance measurement or substitute performance measurement condition. Findings The results show that CSR investment is more preferable for managers in prevention focus instead of those in promotion focus group. Additionally, CSR investment is more preferable for managers in complementary performance measurement condition compared to those in substitute performance measurement condition. This study also provides evidence that the greatest CSR investment is reached when managers are in both prevention focus group and complementary performance measurement conditions. Practical implications Companies need to activate the prevention focus for managers to motivate CSR investment. Additionally, companies need to use complementary performance measurements, which consist of CSR measurement and financial measurements. Originality/value CSR research is dominated by theories explaining the external models which trigger companies to perform CSR. Existing research related to the internal models is limited to psychological aspects that are not directly related to company performance. This study investigates the motivational attributes that have a direct and strong influence on managers behavior. This research shows that regulatory focus is better at predicting CSR investment and is more motivational for individuals to perform well at work.

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Managers' Commitment to the Goals Contained in a Strategic Performance Measurement System*

Cited by 87 publications

References 51 publications

The Differential Improvement Effects of the Strategy Map and Scorecard Perspectives on Managers' Strategic Judgments

The Differential Improvement Effects of the Strategy Map and Scorecard Perspectives on Managers' Strategic Judgments

Cultivating organizational performance through the performance measurement systems: Role of psychological empowerment and creativity

The effect of regulatory focus and performance measurement on corporate social responsibility investment decisions

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