The Curvilinear Association between Performance Measurement System Design and Strategic Performance

Melanie L. Schneider, Matthias D. Mahlendorf, Utz Schäffer

Publikation: KonferencebidragPaperForskningpeer review

Abstrakt

This paper reconciles prior research regarding beneficial and detrimental effects of performance measurement system (PMS) design on performance by arguing for a curvilinear association. By taking the too-much-of-a-good-thing effect as a starting point, we challenge the assumption of a linear association between PMS design and performance outcomes predominantly found in prior research. Based on the example of the level of detail of reporting information, we provide empirical evidence for a curvilinear association following the functional form of an inverse u-shape between this PMS design facet and two strategic performance outcomes. We attribute this to information under- and overload at extreme values of level of detail.
Based on a sample of 59 matched dyadic survey observations of heads of administration and chief orthopaedists of German hospitals, we provide empirical support for the curvilinear association between PMS design and strategic performance outcomes. Results are robust against the inclusion of different sets of controls and an additional specification as a seemingly unrelated regression model.
OriginalsprogEngelsk
Publikationsdato2017
Antal sider26
StatusUdgivet - 2017
Begivenhed14th Annual Conference for Management Accounting Research 2017 - WHU – Otto Beisheim School of Management, Vallendar, Tyskland
Varighed: 9 mar. 201710 mar. 2017
Konferencens nummer: 14
http://www.whu-acmar.com/acmar-2017/

Konference

Konference14th Annual Conference for Management Accounting Research 2017
Nummer14
LokationWHU – Otto Beisheim School of Management
LandTyskland
ByVallendar
Periode09/03/201710/03/2017
Internetadresse

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