The Role of Visual Attention on Managerial Judgment in Balanced Scorecard Performance Evaluation: Insights from Using Eye-Tracking Device

Abstract

This paper investigates the role of visual attention in managerial judgments during balanced-scorecard performance evaluations. Using the Locarna eye tracker to establish the amount of time managers spent focused on visual cues, we found that managers who look more at strategically-linked performance measures are more likely to make decisions consistent with the achievement of their subordinates’ strategic objectives. When aware of strategy, managers focused more on strategically-linked performance measures than on non-linked measures. The presentation format of the strategy information did not significantly affect this focus. Our findings indicate that awareness of strategically-linked performance measures, but not their presentation, appears to be important in helping managers to make better decisions. This study contributes to the management accounting literature by generating useful insights into the impact of visual attention on judgments and decision-making processes.