The use of performance information in strategic decision making in public organizations
International Journal of Public Sector Management
ISSN: 0951-3558
Article publication date: 12 October 2015
Abstract
Purpose
The purpose of this paper is to investigate how the importance of different components of strategic performance measurement systems (SPMS) and their deployment influence the use of performance information from the SPMS in making strategic decisions.
Design/methodology/approach
Data were collected through a survey of 143 managers of Canadian public organizations.
Findings
The findings indicate that two SPMS components, namely, the importance of non-financial performance measures and the use of operational efficiency measures, have significant positive associations with performance information use for strategy implementation and strategy assessment decisions. The extent to which SPMS models were used is found to be positively associated with performance information use for strategy implementation, but not for strategy assessment, decisions. Furthermore, the relationships between SPMS variables and strategic decision making are moderated by information systems/data limitations and management’s commitment to attaining strategic goals. Managerial skills acquired through training or experience with SPMS also contribute positively to such relationships.
Research limitations/implications
The results are affected by limitations associated with the survey method used.
Practical implications
The findings could be useful for supporting public policy, strategic decision making, public service improvement, operational efficiency, and effectiveness.
Originality/value
The study contributes to public management and performance measurement literature by investigating multiple determinants of performance information use in a cross-section of Canadian public organizations.
Keywords
Acknowledgements
The authors are grateful for the two years research grant received from the National Research Foundation, United Arab Emirates (UAE-NRF No.: RSA-1108-00788) which enabled this research study to be carried out. The authors are also grateful to those who attended the British Accounting and Finance Association Annual Conference 2013, Newcastle, UK for their constructive comments on an early draft of this paper.
Citation
Abdel-Maksoud, A., Elbanna, S., Mahama, H. and Pollanen, R. (2015), "The use of performance information in strategic decision making in public organizations", International Journal of Public Sector Management, Vol. 28 No. 7, pp. 528-549. https://doi.org/10.1108/IJPSM-06-2015-0114
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited