The Curvilinear Association between Performance Measurement System Design and Strategic Performance

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

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

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.
Original languageEnglish
Publication date2017
Number of pages26
Publication statusPublished - 2017
Event14th Annual Conference for Management Accounting Research 2017 - WHU – Otto Beisheim School of Management, Vallendar, Germany
Duration: 9 Mar 201710 Mar 2017
Conference number: 14
http://www.whu-acmar.com/acmar-2017/

Conference

Conference14th Annual Conference for Management Accounting Research 2017
Number14
LocationWHU – Otto Beisheim School of Management
CountryGermany
CityVallendar
Period09/03/201710/03/2017
Internet address

Bibliographical note

CBS Library does not have access to the material

Cite this

Schneider, M. L., Mahlendorf, M. D., & Schäffer, U. (2017). The Curvilinear Association between Performance Measurement System Design and Strategic Performance. Paper presented at 14th Annual Conference for Management Accounting Research 2017, Vallendar, Germany.
Schneider, Melanie L. ; Mahlendorf, Matthias D. ; Schäffer, Utz. / The Curvilinear Association between Performance Measurement System Design and Strategic Performance. Paper presented at 14th Annual Conference for Management Accounting Research 2017, Vallendar, Germany.26 p.
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Schneider, ML, Mahlendorf, MD & Schäffer, U 2017, 'The Curvilinear Association between Performance Measurement System Design and Strategic Performance' Paper presented at, Vallendar, Germany, 09/03/2017 - 10/03/2017, .

The Curvilinear Association between Performance Measurement System Design and Strategic Performance. / Schneider, Melanie L.; Mahlendorf, Matthias D.; Schäffer, Utz.

2017. Paper presented at 14th Annual Conference for Management Accounting Research 2017, Vallendar, Germany.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - The Curvilinear Association between Performance Measurement System Design and Strategic Performance

AU - Schneider, Melanie L.

AU - Mahlendorf, Matthias D.

AU - Schäffer, Utz

N1 - CBS Library does not have access to the material

PY - 2017

Y1 - 2017

N2 - 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.

AB - 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.

M3 - Paper

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Schneider ML, Mahlendorf MD, Schäffer U. The Curvilinear Association between Performance Measurement System Design and Strategic Performance. 2017. Paper presented at 14th Annual Conference for Management Accounting Research 2017, Vallendar, Germany.