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Article
Publication date: 20 April 2015

Rusdi Akbar, Robyn Ann Pilcher and Brian Perrin

This paper aims to explore the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses…

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Abstract

Purpose

This paper aims to explore the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses Indonesia’s attempt to introduce PMSs by addressing three research questions: Do organisations in developing countries actually use PMSs to aid decision-making and help plan for future performance improvement? (RQ1) Do the three isomorphic pressures exist in the development and use of PMSs? (RQ2) and If institutional isomorphism is evident, can accountability exist within the development and use of PMSs given these pressures? (RQ3).

Design/methodology/approach

This research explores the perceived drivers behind the implementation of performance measurement systems (PMSs) in Indonesian local government (ILG). It analytically assesses Indonesia’s attempt to introduce a PMS by addressing three research questions: RQ1 Do organisations in developing countries actually use PMSs to aid decision-making and help plan for future performance improvement? RQ2 Do the three isomorphic pressures exist in the development and use of PMSs? and RQ3 If institutional isomorphism is evident, can accountability exist within the development and use of PMSs given these pressures.

Findings

Results determined that although employees perceived coercive isomorphism as being a driver of ILG compliance with President B.J. Habibie’s presidential instruction (Inpres No. 7/1999), the Laporan Akuntabilitas Kinerja Institusi Pemerintah/Performance Accountability Report of State Apparatus (known as LAKIP), many councils were still not reporting and those who were, were not doing it well. Many councils lacked management motivation, with some choosing to merely mimic (mimetic isomorphism) what others were doing. Better-resourced councils made use of external consultants or local universities where knowledge was shared (normative isomorphism).

Practical implications

An understanding of factors influencing the development and use of performance measures, in turn, can be used not only to improve PMSs in the future but to improve the quantity and quality of LAKIP reporting.

Originality/value

The theoretical development and interpretation of this research is drawn from institutional theory with a major contribution being that it provides an in-depth conceptual overview and understanding of factors influencing the development and use of performance measures. Further, it fills a gap in the literature exploring PMSs and accountability in a developing country – in this case, Indonesia.

Details

Qualitative Research in Accounting & Management, vol. 12 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Open Access
Article
Publication date: 18 August 2022

Karin Seger, Hans Englund and Malin Härström

The purpose of this paper is to describe and theorize the type of hate-love relationship to performance measurement systems (PMSs) that individual researchers tend to develop in…

Abstract

Purpose

The purpose of this paper is to describe and theorize the type of hate-love relationship to performance measurement systems (PMSs) that individual researchers tend to develop in academia. To this end, the paper draws upon Foucault’s writings on neoliberalism to analyse PMSs as neoliberal technologies holding certain qualities that can be expected to elicit such ambivalent views.

Design/methodology/approach

The paper is based on a qualitative interview study of researchers from three Swedish universities, who were asked to reflect upon questions related to three overall themes, namely, what it means to be a researcher in contemporary academia, the existence and use of PMSs at their universities and if/how such PMSs affected them and their work as researchers.

Findings

The empirical findings show that the hate-love relationship can be understood in terms of how PMSs are involved in three central moments of governmentality, where each such moment of governmentality tends to elicit feelings of ambivalence among researchers due to how PMSs rely on: a restricted centrifugal mechanism, normalization rather than normation and a view of individual academics as entrepreneurs of themselves.

Originality/value

Existing literature has provided several important insights into how the introduction and use of PMSs in academia tend to result in both negative and positive experiences and reactions. The current paper adds to this literature through theorizing how and why PMSs may be expected to elicit such ambivalent experiences and reactions among individual researchers.

Details

Qualitative Research in Accounting & Management, vol. 20 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 4 June 2020

Louisi Francis Moura, Edson Pinheiro de Lima, Fernando Deschamps, Eileen M. Van Aken, Sergio E. Gouvea Da Costa, Fernanda Tavares Treintaa, José Marcelo Almeida Prado Cestari and Ronan Assumpção Silva

The purpose of this research is to examine the factors that influence the design of performance measurement systems (PMSs) in nonprofit organizations (NPOs) and public…

Abstract

Purpose

The purpose of this research is to examine the factors that influence the design of performance measurement systems (PMSs) in nonprofit organizations (NPOs) and public administration and explore inter-relationships among these factors.

Design/methodology/approach

Findings resulted through the identification of design factors from the paper portfolio of a previous systematic literature review on this topic and the construction of a factor co-occurrence network for the identified factors. 

Findings

The methodology helped to determine the relationships among factors and show how these factors influence PMSs in NPOs and public administration. It also helped to demonstrate how PMSs in these organizations are different from PMSs in traditional companies because of the impact of the factors on the complexity and dynamics of NPOs and public administration. The findings and discussion contribute to the performance measurement literature on NPOs and public administration by presenting a set of design factors related to purpose, stakeholders and management.

Practical implications

This paper presents practical implications for managers regarding the PMS design process and shows how some design factors can be particularly related to these organizations

Originality/value

The design factors are particular to the organizational dynamic and should be considered by managers involved with the design (or redesign) process of performance measurement systems.

Details

Measuring Business Excellence, vol. 24 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 15 November 2011

Amy Tung, Kevin Baird and Herbert P. Schoch

The purpose of this paper is to examine the association between the use of multidimensional performance measures and four organizational factors with the effectiveness of…

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Abstract

Purpose

The purpose of this paper is to examine the association between the use of multidimensional performance measures and four organizational factors with the effectiveness of performance measurement systems (PMSs).

Design/methodology/approach

Data were collected by mail survey questionnaire from a random sample of 455 senior financial officers in Australian manufacturing organizations.

Findings

The results reveal that the use of multidimensional performance measures is associated with two dimensions of the effectiveness of PMSs (performance and staff related outcomes). The results also reveal that organizational factors were associated with the effectiveness of PMSs. Specifically, top management support was found to be associated with the effectiveness of PMSs in respect to the performance related outcomes, and training was associated with the staff related outcomes.

Practical implications

The findings provide managers with an insight into the desirable PMS characteristics and the specific organizational factors that they can focus on in order to enhance the effectiveness of their performance measurement system.

Originality/value

This study contributes to the limited empirical research examining the effectiveness of PMSs regarding the extent to which organizational processes are achieved. In addition, the study provides an empirical analysis of the association between the five perspective (financial, customer, internal business process, learning and growth, and sustainability) BSC model and four organizational factors with the effectiveness of PMSs.

Article
Publication date: 11 May 2015

Martyna Swiatczak, Michèle Morner and Nadine Finkbeiner

The purpose of this paper is to investigate how performance measurement systems (PMSs) might be designed in order to empower managers of state-owned enterprises (SOEs) towards an…

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Abstract

Purpose

The purpose of this paper is to investigate how performance measurement systems (PMSs) might be designed in order to empower managers of state-owned enterprises (SOEs) towards an active work role.

Design/methodology/approach

The study is based on a conceptual approach that combines insights from prior research on performance measurement with that on dimensions of psychological empowerment. An exploratory case study is used to further develop propositions for the design of an empowering PMS. Data from in-depth interviews with six managers of diverse SOEs located within a German city enables the tracing of underlying causal mechanisms.

Findings

PMSs that are designed according to the principles of goal clarity, balanced goal difficulty, autonomy-enhancing measurement, and a broad goal scope can positively influence the four dimensions of empowerment: meaning, competence, self-determination, and impact.

Practical implications

The study’s propositions can be used to enhance the governance of SOEs through a particular design of PMSs. This research thus responds to the call for a new generation of governance mechanisms within the complex setting of SOEs.

Originality/value

Current research on PMSs is extended through the construct of psychological empowerment. Thus, an existing governance mechanism is further developed towards being more effective for use in the context of SOEs.

Details

International Journal of Public Sector Management, vol. 28 no. 4/5
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 15 June 2018

Sabina Nuti, Guido Noto, Federico Vola and Milena Vainieri

Current performance measurement systems (PMSs) are mainly designed to measure performance at the organizational level. They tend not to assess the value created by the…

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Abstract

Purpose

Current performance measurement systems (PMSs) are mainly designed to measure performance at the organizational level. They tend not to assess the value created by the collaboration of multiple organizations and by the involvement of users in the value creation process, such as in healthcare. The purpose of this paper is to investigate the development of PMSs that can assess the population-based value creation process across multiple healthcare organizations while adopting a patient-based perspective.

Design/methodology/approach

The paper analyzes the development of a new healthcare PMS according to a constructive approach through the development of a longitudinal case study. The focus is on the re-framing process of the PMS put in place by a large group of Italian regional health systems that have adopted a collaborative assessment framework.

Findings

Framing information according to the population served and the patients’ perspective supports PMSs in assessing the value creation process by evaluating the contribution given by the multiple organizations involved. Therefore, it helps prevent each service provider from working in isolation, and avoids dysfunctional behaviors. Re-framing PMSs contributes to re-focusing stakeholders’ perspective toward value creation; legitimizes organizational units specifically aimed at managing transversal communication, cooperation and coordination; supports the alignment of professionals’ and organizations’ goals and behaviors; and fosters shared accountability among providers.

Originality/value

The paper contributes to the scientific debate on PMSs by investigating a case that focuses on value creation by adopting a patient-centered perspective. Although this case comes from the healthcare sector, the underlying user-centered approach may be generalized to assess other environments, processes, or contexts in which value creation stems from the collaboration of multiple providers (integrated co-production).

Details

Management Decision, vol. 56 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 8 October 2021

Matteo Mura, Pietro Micheli and Mariolina Longo

This study aims to investigate how dynamic tensions between performance measurement system (PMS) uses enable organizations to achieve both exploitation and exploration and enhance…

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Abstract

Purpose

This study aims to investigate how dynamic tensions between performance measurement system (PMS) uses enable organizations to achieve both exploitation and exploration and enhance firm performance.

Design/methodology/approach

The authors collected survey data on 153 Italian companies. Scales for each construct were validated through an exploratory factor analysis. Data on firm performance were cross-validated by using lagged accounting data. The authors tested our hypotheses using hierarchical ordinary least squares regressions, together with bootstrapping procedures for the test on mediation.

Findings

A diagnostic use of PMS has a positive association with both exploitation – e.g. reductions in total costs and lead times – and exploration, e.g. introduction of new products and extension of product ranges. The dynamic tension created by a joint diagnostic and interactive use has the strongest association with organizational ambidexterity, measured as the multiplicative interaction between exploration and exploitation.

Practical implications

If an organization or business unit is mainly pursuing exploitative goals, a mainly diagnostic use of PMS would be most suitable. If goals are both exploitative and explorative, a mix of diagnostic and interactive uses would be most effective.

Originality/value

This research helps reconcile conflicting views in the literature. The diagnostic use of PMS, far from acting as a “negative force,” appears to be necessary to guide opportunity search and to establish an appropriate scope for exploration-related activities. The authors’ focus on the uses of PMSs shows that ambidexterity is achieved through managerial capability, rather than just through the introduction of systems and structures.

Details

International Journal of Operations & Production Management, vol. 41 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 May 2020

Ann Martin-Sardesai, James Guthrie and Basil P. Tucker

This paper explores the impact of contemporary calculative practices, termed “accountingisation”, on Australian accounting academics' values. Also, it seeks to understand the…

Abstract

Purpose

This paper explores the impact of contemporary calculative practices, termed “accountingisation”, on Australian accounting academics' values. Also, it seeks to understand the rationale underlying the development of various university performance measurement systems (PMSs), and their implementation and evaluation.

Design/methodology/approach

A case study approach uses accounting academics' responses to an online survey and also semi-structured interviews with senior research-related leaders in a group of Australian universities. This is supplemented by document analysis. A narrative story-telling approach explores and presents the combined data observations, over the period 2010–2018, of two characters: a “typical” accounting academic and a “typical” vice-chancellor.

Findings

The study contributes to the literature on PMSs in understanding “accountingisation”, the rationale behind the development, implementation and evaluation of performance metrics by senior management and its impact on accounting academics. It juxtaposes and unpacks the complexities and nuances of PMSs and provides empirical evidence by highlighting the perceptions of both the Australian accounting academics and senior university management. The findings demonstrate a level of discontent among accounting academics in reconciling the expectations of increased “accountingisation” within university PMSs. These are juxtaposed against the views of senior university leaders who are influential in determining PMSs.

Originality/value

This paper is novel in considering the implications of “accountingisation” in a contemporary setting, focusing on accounting academics, values and individual PMSs within business schools.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 6
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 29 December 2017

Syrus Islam, Ralph Adler and Deryl Northcott

Performance measurement systems (PMSs) are at the heart of most organisations. The aim of this study is to examine the attitudes of top-level managers towards the incompleteness…

Abstract

Purpose

Performance measurement systems (PMSs) are at the heart of most organisations. The aim of this study is to examine the attitudes of top-level managers towards the incompleteness of PMSs.

Design/methodology/approach

This paper draws on an in-depth field study conducted in an energy and environmental services provider based in New Zealand. The data, which were obtained from 20 semi-structured interviews, were triangulated against on-site observations and company documents.

Findings

The findings suggest that whether the incompleteness of a PMS is considered problematic or non-problematic depends on the role that the PMS plays in implementing a firm’s strategy. The authors show that when the PMS is mainly used to trigger improvement activities on and around strategic objectives and managers perceive adequate improvement activities to exist, then they consider the incompleteness of the PMS in relation to these strategic objectives to be non-problematic.

Originality/value

This study contributes to the nascent literature on managerial attitudes towards the incompleteness of PMSs by identifying conditions under which the incompleteness is considered problematic or non-problematic. The authors also contribute to the literature on the association between design qualities of PMSs and firm performance by suggesting that poor design qualities of a PMS (such as incompleteness) may not always translate into poor firm performance.

Details

Qualitative Research in Accounting & Management, vol. 15 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 23 May 2022

Stefano Baraldi, Antonella Cifalinò, Irene Eleonora Lisi and Marco Giovanni Rizzo

Scholars have recognised that an inherent ambiguity underlines the roles of controllers, as they navigate multiple expectations of various organisational counterparts, including…

Abstract

Purpose

Scholars have recognised that an inherent ambiguity underlines the roles of controllers, as they navigate multiple expectations of various organisational counterparts, including the control-type needs of corporate top managers and the decision-making needs of business managers. Role ambiguity (RA) is a form of psychological distress leading to dysfunctional work-related outcomes (WROs); therefore, the purpose of this study is to analyse whether the use of performance measurement systems (PMSs) by controllers influences their RA and, in turn, their job satisfaction and organisational commitment.

Design/methodology/approach

This study used data collected from a survey of 158 controllers to investigate whether controllers’ diagnostic and interactive uses of PMSs affect their RA and, indirectly, organisational commitment and job satisfaction.

Findings

The results show that an interactive use of PMSs by controllers decreases their RA, with positive effects on their commitment and satisfaction. On the contrary, PMS diagnostic use has no significant influence on either RA or WROs.

Originality/value

This study contributes to the body of literature on the psychological effects of PMSs related to RA, providing further empirical evidence to suggest that the adoption of PMSs may decrease individuals’ RA and, in turn, increase their WROs. In particular, this study enriches the existing literature with two elements of novelty: focus on controllers’ role instead of that of popular managers and focus on the behavioural effects of the diagnostic and interactive uses of PMSs.

Details

Journal of Accounting & Organizational Change, vol. 19 no. 1
Type: Research Article
ISSN: 1832-5912

Keywords

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