Linking decision-control and decision-management uses of performance measurement systems

Abstract

Purpose

The purpose of this paper is to analyze, for both parties of a distribution channel, to what extent each party perceives the counterpart’s use of performance measurement systems (PMS) and how this perception affects the perceiver’s own use of these systems, for either decision control or decision management.

Design/methodology/approach

The paper proposes a conceptual model tested at different levels using structural equations models. A case study uses survey data from 107 distributors and 91 manufacturer managers.

Findings

PMS allow evaluation by the manufacturer and daily management by distributors; both uses of PMS can be simultaneous and complementary. Results show that each party’s perception of the counterpart’s use contributes to its own use, although real uses do not significantly influence these perceptions.

Research limitations/implications

The results must be interpreted with caution because the sample is small. This study calls for further data collection in real situations with larger samples, and for eliminating the influence of the distribution channel type. Further work is needed to analyze other constructs driving the relationship between real use and perception.

Originality/value

This study’s originality comes from the conceptual model, data set, and levels of analysis. Decoupling real use and perception, it challenges the prevailing assumption that managers accurately perceive counterpart managers’ use of PMS. Analyzing at both group and individual levels, it extends the more usual dyadic studies by recognizing that any given manager’s perception may be almost wholly formed by his/her interaction with a group of individuals.

Citation

Sanchez, J.M., Velez, M.L., Ramón-Jerónimo, M.Á. and Araujo, P. (2017), "Linking decision-control and decision-management uses of performance measurement systems", International Journal of Physical Distribution & Logistics Management, Vol. 47 No. 1, pp. 84-103. https://doi.org/10.1108/IJPDLM-12-2015-0303