The Influence of Performance Measurement on the Processual Dynamics of Strategic Change

Margaret A. Abernethy, Henri Dekker, Jennifer Grafton

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

We draw on a five-year longitudinal data set to investigate the influence of performance measurement in the processual dynamics of strategic change, particularly in enacting effective strategic change. Our model examines the role of performance measurement in driving strategy-consistent operational changes and in ensuring that the desired objectives of the strategic change process are achieved. We investigate these roles for performance measurement over time and empirically document lags between changes in strategic priorities, changes in operational processes, and subsequent changes in firm performance. We find that performance measurement supports the implementation of strategic change by influencing the extent to which changes to operational tasks and activities are made in response to new strategic priorities, as well as influencing the quality and impact of these operational changes, as reflected in improved contemporaneous and future firm performance.
Original languageEnglish
JournalManagement Science
Number of pages20
ISSN0025-1909
DOIs
Publication statusPublished - 11 Jun 2020
Externally publishedYes

Bibliographical note

Epub ahead of print. Published online: June 11, 2020.

Keywords

  • Performance measurement
  • Strategic change
  • Firm performance

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