A Balancing Act? The Implications of Mixed Strategies for Performance Measurement System Design

Henri Dekker, Tom L. C. M. Groot, Martijn Schoute

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Abstract

This paper examines how firms design performance measurement systems (PMSs) to support the pursuit of mixed strategies. In particular, we examine the implications of firms' joint strategic emphasis on both low cost and differentiation for their use of performance measurement and incentive compensation. Analysis of survey data of 387 firms shows that more than half of the sample to some extent or fully mixes strategic priorities, while strategic priorities resembling strategic archetypes (primarily low cost or differentiation) populate only 36 percent of the sample. Our analyses support that, as compared to archetypal strategies, pursuing mixed strategies elicits design of more comprehensive and complex PMSs that are aimed at balancing effort and decisions toward the multiple strategies pursued.
OriginalsprogEngelsk
TidsskriftJournal of Management Accounting Research
Vol/bind25
Udgave nummer1
Sider (fra-til)71-98
Antal sider28
ISSN1049-2127
DOI
StatusUdgivet - 2013
Udgivet eksterntJa

Emneord

  • Cluster analysis
  • Incentives
  • Mixed strategies
  • Performance measurement
  • Survey

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