Performance effects of performance measurement systems – Evidence from a transition economy

Abstract

Purpose

The current study aims to advance the understanding of the role of performance measurement systems (PMS) in the improvement of companies’ performance, as well to contribute to the limited knowledge of this issue in transition economies. In order to do so, performance effects of PMS are examined, testing both dominant approaches: the performance measurement diversity view and performance measurement alignment view.

Methodology

A survey using questionnaire was conducted on a sample of large- and medium-sized manufacturing companies in Serbia.

Findings

The results of the research support the performance measurement diversity view, as we found evidence that a broader scope PMS is positively associated with performance. However, we also found partial support for the influence of the strategy–PMS alignment on performance.

Originality/value of chapter

This study investigates the complex mechanism of PMS effect on performance in a particular context – the transition economy. Moreover, this study represents a pioneering attempt to evaluate the state of performance measurement practice in Serbia and is one of the rare studies of this type on transition economies.

Citation

Pesalj, B. (2014), "Performance effects of performance measurement systems – Evidence from a transition economy", Performance Measurement and Management Control: Behavioral Implications and Human Actions (Studies in Managerial and Financial Accounting, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 127-151. https://doi.org/10.1108/S1479-351220140000028012