The Effectiveness of Strategic Performance Measurement System in Creating and Steering Tension
Performance Measurement and Management Control: Contemporary Issues
ISBN: 978-1-78560-916-9, eISBN: 978-1-78560-915-2
Publication date: 28 June 2016
Abstract
Purpose
We examine the effectiveness of strategic performance measurement system (SPMS) in creating and steering a tension characterized by the two competing values of transformation and consistency.
Methodology/approach
We identify problems with a dynamic tension and propose an alternative approach to deepen understanding of tension management. The data were collected from 312 strategic business units of Japanese firms listed in the first and second sections of the Tokyo Stock Exchange.
Findings
We obtained the following results through a cluster analysis, a multiple comparison test, a multiple regression analysis containing interactions, and a post hoc analysis. First, we found that SPMS is positively associated with the creation of tension. Second, while the organizations facing tension averagely show higher performance than the others, the group shows larger variance in the performance. Third, SPMS contributes to the steering of the tension to some extent; however, the effect is not strong enough to attain the highest performance.
Research implications
The findings have some implications for management accounting literature in the following ways; by providing a new perspective for deepening a consideration of the steering of the tension, emphasizing that the organizations facing tension give us an interesting research opportunity, and suggesting a need to search a composed mechanism (including SPMS) to steer the tension effectively.
Originality/value
We define and operationalize the tension with the competing values so that we can clearly recognize the effects of SPMS on the creation and steering of the tension.
Keywords
Acknowledgements
Acknowledgments
We would like to acknowledge the helpful advice and comments from Laurie Burney, Matti Skoog, and the participants at the 8th Conference on Performance Measurement and Management Control, Nice, France. This work was supported by JSPS KAKENHI Grant Number 24730400 and 15K17169. All errors are the responsibility of the authors.
Citation
Kondo, T. and Nishii, T. (2016), "The Effectiveness of Strategic Performance Measurement System in Creating and Steering Tension", Performance Measurement and Management Control: Contemporary Issues (Studies in Managerial and Financial Accounting, Vol. 31), Emerald Group Publishing Limited, Leeds, pp. 141-164. https://doi.org/10.1108/S1479-351220160000031005
Publisher
:Emerald Group Publishing Limited
Copyright © 2016 Emerald Group Publishing Limited