TY  - CHAP
AB  - The present research examines the effect of incentivizing both outcome and driver measures of SPMS on middle managers' proactivity in influencing the strategy formulation process. A case-based experiment was conducted among 74 full-time employees. The results suggest that when incentives are linked to both outcome and driver measures of SPMS, compared with when they are outcome-based and not linked to the SPMS, managers are more proactive in communicating strategy-related issues to top management. In addition, this effect of SPMS-based incentives on middle managers' proactivity is mediated by their autonomous extrinsic motivation to achieve strategic goals. The results are in general consistent with postulates of the self-determination theory of motivation. This chapter also has practical implication. Specifically, recent evidence suggests that most SPMS adopters fail to validate causal business models underlying their formulated strategies (Ittner, 2008; Ittner & Larcker, 2003, 2005). Middle managers' proactive strategic behavior may be one means to prompt top management to inspect formulated strategies and their underlying business models.
VL  - 20
SN  - 978-1-78052-754-3, 978-1-78052-755-0/1474-7871
DO  - 10.1108/S1474-7871(2012)0000020015
UR  - https://doi.org/10.1108/S1474-7871(2012)0000020015
AU  - Guo Lan
AU  - Wong-On-Wing Bernard
AU  - Lui Gladie
ED  - Marc J. Epstein
ED  - John Y. Lee
PY  - 2012
Y1  - 2012/01/01
TI  - Motivational Effects of Linking Incentives to Different Measures in Strategic Performance Measurement Systems: Implications for Proactive Strategic Behavior
T2  - Advances in Management Accounting
T3  - Advances in Management Accounting
PB  - Emerald Group Publishing Limited
SP  - 209
EP  - 240
Y2  - 2024/04/25
ER  -