The Balanced Scorecard as a Strategy-Evaluation Tool: The Effects of Implementation Involvement and a Causal-Chain Focus

Tayler, William B.

doi:10.2139/ssrn.999076

Cited by 30 publications

(24 citation statements)

References 73 publications

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“…To better understand these results, we examine participants’ strategy “buy‐in” (Cokins [2005], Tayler [2010]). We define buy‐in as the extent to which an individual believes in the effectiveness of and is committed to the strategy.…”

Section: Resultsmentioning

confidence: 99%

“…Second, while our study focuses on strategy selection and deliberation, it ignores other dimensions of how strategic performance measurement systems evolve with firm strategy. For instance, performance‐measure identification and selection likely run parallel to strategy formulation (Tayler [2010]). With respect to surrogation, selecting performance measures may induce a “measure‐focus” that offsets the benefits of managers’ involvement in strategy formulation.…”

Section: Discussionmentioning

confidence: 99%

“…However, distribution matching does not guarantee that those participants who ex ante would have preferred a given strategy were assigned that strategy. This relates to the question of participants’ buy‐in of each strategy (Cokins [2005], Tayler [2010]), which we discuss further in our supplemental analyses.…”

Section: Methodsmentioning

confidence: 99%

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Strategy Selection, Surrogation, and Strategic Performance Measurement Systems

Choi

Hecht

Tayler

2012

J of Accounting Research

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Strategic performance measurement systems operationalize firm strategy with a set of performance measures. A consequence of such alignment is the tendency for managers to lose sight of the strategic construct(s) the measures are intended to represent, and subsequently act as though the measures are the constructs of interest, a phenomenon referred to as surrogation. We investigate how involvement in strategy selection affects managers’ propensity to exhibit surrogation. We predict and find that strategy selection reduces surrogation. Surprisingly, we do not find that engaging in strategy deliberation, a key process underlying strategy selection, reduces surrogation. Thus, managers’ involvement in the actual choice of strategy appears to be both a necessary and sufficient condition to mitigate surrogation. Our paper broadens understanding of factors that influence surrogation, such as the effects of different aspects of managers’ strategic involvement and buy‐in. Further, by documenting how managers behave within (as opposed to simply with) strategic performance measurement systems, we highlight the potential for managers to endogenously influence the effectiveness of such systems.

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Section: Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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Strategy Selection, Surrogation, and Strategic Performance Measurement Systems

Choi

Hecht

Tayler

2012

J of Accounting Research

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“…Tayler [] investigated how to mitigate motivated reasoning when the BSC is framed as a causal chain, rather than simply as four independent quadrants. He randomly assigned 135 MBA students into six between‐subjects treatments with two levels of scorecard framing (four group format and causal chain format) crossed with three levels of scorecard implementation involvements (no involvement, strategic selection involvement, and both strategic and measures selection involvement).…”

Section: Background Theory and Hypothesesmentioning

confidence: 99%

“…They assumed that managers’ attention is linked exclusively to the format of the stimulus. This line of research is primarily concerned about how BSC should be designed or formatted to draw attention (e.g., by using a strategy map (Banker, Chang, and Pizzini [, ], Cheng and Humphreys []), causal chain (Tayler []), and different formats (Cardinaels and van Veen‐Dirks []). The main objective of this line of research is to improve the future design of the BSC.…”

Section: Introductionmentioning

confidence: 99%

The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device

Chen

Jermias

Panggabean

2016

J of Accounting Research

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This paper investigates the role of visual attention in managerial judgments during balanced‐scorecard performance evaluations. Using the Locarna eye tracker to establish the amount of time managers spent focused on visual cues, we found that managers who look more at strategically linked performance measures are more likely to make decisions consistent with the achievement of their subordinates’ strategic objectives. When aware of strategy, managers focused more on strategically linked performance measures than on nonlinked measures. The presentation format of the strategy information did not significantly affect this focus. Our findings indicate that awareness of strategically linked performance measures, but not their presentation, appears to be important in helping managers to make better decisions. This study contributes to the management accounting literature by generating useful insights into the impact of visual attention on judgments and decision‐making processes.

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Does decentralized decision making increase company performance through its Information Technology infrastructure investment?

Mohamad

Zainuddin

Alam

et al. 2017

International Journal of Accounting Information Systems

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A company's Information Technology (IT) infrastructure is a key factor in its sustainability and ongoing success and profitability. This paper explores the relationship between a company's investment in IT and its performance. Performance is measured, with the help of a Balanced Scorecard (BSC), in four ways; financial, internal business processes, innovation & learning and customer perspective. The relationship between each BSC category serves as indicators of the effect of IT investment on a company's performance. This will help establish the benefits of both financial and non-financial indicators. We focus on the Electrical and Electronic manufacturing performance of companies Malaysia. System Resource Theory (SRT) is used as the background theory to explain the concepts of organizational effectiveness, efficiency, productivity and multidimensional performance measurements and to link the variables used in this study. We conduct an empirical study in order to confirm the moderating effects of decentralized decision making. The results suggest that IT investment produces a significant relationship with all BSC perspectives, but the moderating effect is only significant only from a customer perspective.

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The Balanced Scorecard as a Strategy-Evaluation Tool: The Effects of Implementation Involvement and a Causal-Chain Focus

Cited by 30 publications

References 73 publications

Strategy Selection, Surrogation, and Strategic Performance Measurement Systems

Strategy Selection, Surrogation, and Strategic Performance Measurement Systems

The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device

Does decentralized decision making increase company performance through its Information Technology infrastructure investment?

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