Strategic Performance Measurement Systems Research Articles

Power Dynamics in Accounting-Related Strategic Decision-Making within Hospital Management: A Narrative Literature Review

This paper aims to explore how power dynamics shape strategic decisions and performance measurement systems in hospital management, elucidating their impact on managerial choices in healthcare settings. Key themes and factors related to power dynamics in hospitals are identified, including the distribution of power among management teams, the influence of individual and group power dynamics, and the effects of power on decision-making across organizational levels. By synthesizing insights from previous research, this paper informs the development of theoretical frameworks and methodological approaches for studying the interplay between power dynamics and strategic decision-making in hospital management. Furthermore, it offers practical implications for hospital administrators and managers, providing guidance on navigating power dynamics to enhance decision-making effectiveness and organizational performance. This paper contributes to advancing our understanding of the complex dynamics of power and decision-making in hospital management, offering valuable insights for both research and practice in healthcare administration.

The Strategic Performance Measurement System and Organisational Performance Through the Lenses of Contextual Factors: Empirical Evidence from the Hotel Industry

Abstract The unprecedented effects of COVID-19 have been problematic for hotels. Therefore, implementing a performance measurement system (PMS) has become critical for hotel organisations. This study thus examined how the balanced scorecard (BSC) as a strategic PMS has a function in revealing hotel performance. Two contextual factors of hotels—external environmental uncertainty (EEU) and decentralised decision-making—were also investigated to understand their effects on the use of the BSC, which, in turn, determines hotel performance. A survey was conducted involving 145 four- and five-star hotels in Turkey. Partial least squares structural equation modelling was used to test the hypotheses. It was found that EEU is significantly related to decentralised decision-making but not to the BSC. Meanwhile, the BSC does not have an indirect effect on the relationship between EEU and hotel performance; however, it was found to act as a mediator between the decentralisation of decision-making and hotel performance. Finally, decentralised decision-making was found to act as a mediator between EEU and the BSC.

The effects of strategic alignment and strategic clarity on multidimensional task performance

The alignment of a firm's performance measures with its strategic objectives is fundamental to effective management control, at least in part because performance measures and stated strategy represent separate sources of information that workers can rely on to guide their efforts. We experimentally examine the effects of strategic alignment and strategic clarity (i.e., the specificity with which strategic objectives are communicated) on workers' performance on a multidimensional task. We predict and find that alignment improves performance under a vague strategy statement but impairs performance under a clear strategy statement. These results are consistent with strategic clarity and performance measure alignment magnifying the tradeoff between conflicting performance dimensions, leading to reduced commitment to the firm's strategic objectives. Our results confirm the importance of alignment in strategic performance measurement systems and suggest a substitutive relationship with strategic communication: alignment can overcome the negative effects of strategic vagueness, and strategic clarity can help overcome the negative effects of imperfectly aligned performance measures.

Pengaruh Sistem Pengukuran Kinerja Strategis, Job Relevant Information, Dan Kejelasan Peran Terhadap Kinerja Manajerial Perguruan Tinggi Swasta Di Bandar Lampung

Higher education is one of the educational institutions that are the main means in educating the nation. At this time many universities are established, managed, and developed by the government (state) or private. The main role of universities is to explore by conducting research and transmit knowledge by means of education. Managerial performance is a result of managerial activities that begin with planning, implementing, monitoring business, accountability reports, coaching, and monitoring. Managerial performance can be used to assess the processes and activities of managers in carrying out management functions which are calculated using indicators of planning, investigating, coordinating, evaluating, representing, negotiating, staffing, and supervising.The research design used in this research is explanatory research with a quantitative approach presented with numbers and analysis using statistics. Conducted from December 2021 to July 2022 on 7 private universities in Bandar Lampung where data collection using a questionnaire was then analyzed and presented in the form of a characteristic distribution table.From the results of research conducted by the author that the Strategic Performance Measurement System has a positive influence (O = 0.353) with the performance construct. the value of t – statistic in this construct relationship is 2.103 > 1.96, and the value of p – value is 0.031 < 0.05. Job Relevant Information has a positive effect (O = 0.338) with the performance construct. the value of t – statistic in this construct relationship is 2.072 > 1.96, and the value of p – value is 0.027 < 0.05. Role Clarity has a positive effect (O = 0.335) with the performance construct. the value of t – statistic in this construct relationship is 2.035 > 1.96, and the value of p – value is 0.025 < 0.05.Thus, it can be concluded that the influence of the strategic performance measurement system, job relevant information, and role clarity simultaneously have a significant effect on managerial performance. This shows that each variable is in accordance with what is expected so that managerial performance increases.

Strategic Management Accounting and Performance Measurement Systems: A Loose Coupling?

This study aims to clarify the association between strategic management accounting (SMA) and performance measurement system (PMS) based on configurational and contingency theories assumptions. For that, data were collected from 98 higher-level accounting managers working in Saudi companies listed at the Saudi Exchange's Main Market at the end of 2022. The results show that there is a positive and significant correlation between SMA and PMS, and there is a statistically significant positive effect of the level of practicing SMA on PMS adopted by surveyed companies. This means that the company that is practicing SMA in higher level tends to adopt a non-traditional PMS. The results also show that there is a statistically significant difference between surveyed companies in the level of performance due to the linkage between their PMS and SMA practices. Appropriate linkage between SMA and PMS leads for better performance. However, the present study supports the idea that SMA can be a contextual factor affecting the type of PMS adopted by companies. Keywords: Strategic management accounting, performance measurement systems, contextual factor, Saudi Exchange's Main Market. DOI: 10.7176/RJFA/14-10-06 Publication date: May 31 st 2023

Role Clarity and Job-related Information as the Linkage between Planning Implementation Processes and Individual-level Performance

The purpose of this study is to investigate how role clarity and job-relevant information serve as the linkage between planning imple-mentation processes and individual-level performance. We hypothesize that participative budgeting and strategic performance measurement systems serve as inputs into the social system of an organization that allow managers to understand their roles, thus enabling them to implement the plans of the organization. We then apply a role theory lens to further examine the mechanisms underlying the relationship between organizational planning and managerial performance. Specifically, we explore the role-related relationships among the constructs involved by performing Hunter-Schmidt meta-analyses and meta-analytic structural equation modeling (MASEM) to examine causal paths among constructs that have been hypothesized in the literature. Further tests utilizing MASEM found positive relationships among participative budgeting, strategic performance measuring systems, job-related information, role clarity, and job performance. In conclusion, our findings indicate the importance of clarifying roles in determining the degree to which managers have the information needed to perform their jobs.

Strategic stances and organizational performance: Are strategic performance measurement systems the missing link?

PurposeAlthough prior researchers have consistently established a significant relationship between different strategic stances and organizational performances across different research contexts, the mechanisms underlying this link remain unclear. This study attempts to fill this gap in the literature by testing the mediating effect of the use of strategic performance measurement systems (SPMS) on the relationship between strategic stances (prospector, defender, and reactor) and organizational performance in the public sector.Design/methodology/approachThis research is based on data collected by surveying 224 managers at public organizations in the Turkish Republic of Northern Cyprus (TRNC) and conducts an analysis using structural equation modeling (SEM).FindingsThe study findings show that prospector strategy is positively associated with organizational performance through the use of SPMS. The reactor strategy was negatively related to organizational performance through the use of SPMS. The defender strategy shows mixed results in terms of its effect on the use of SPMS and organizational performance.Research limitations/implicationsThe results obtained here provide strong evidence of the vitality of the use of SPMS for efficiency and effectiveness as a mediator between prospector strategy and organizational performance. To extend this position, future researchers could incorporate other contingent variables, such as structural autonomy, or use experimental design methods during economic austerity in the aftermath of the coronavirus disease 2019 (COVID-19) global pandemic.Originality/valueThis study represents an attempt to address public administration literature' general calls for grounded research that spells out to practitioners how different strategic stances are likely to affect the use of SPMS to achieve organizational performance levels in the public sector. The present study extends the public administration literature by examining the unexplored linkage of the use of SPMS through which strategic stances influence organizational performance in major public sector organizations.

Standardization of the strategy translation process, procedural fairness in budgeting and firm performance

This paper studies the effect of the standardization of the strategy translation process on procedural fairness in budgeting and firm performance. Analysis of 250 valid questionnaires using a structural equation model shows that the strategy translation process (STP) affects firm performance not only directly but also indirectly, through budget participation and procedural fairness in budgeting. This study enriches the literature on the economic consequences of strategic performance measurement systems and expands research on procedural fairness in budgeting and the factors influencing firm performance. This study shows that the standard translation and implementation of strategy will decrease managers’ bias in the target-setting process, thus increasing manager’s sense of fairness in the budget process and ultimately improving firm performance.

Strategic Performance Measurement System in Higher Education in Indonesia: New Public Management Approach

This research is a descriptive overview to describe the alignment between the criteria and measurements of several performance indicators compiled in the university's strategic plan. Key Performance Indicators (KPI) as indicators of organizational performance based on the Vision, Mission, and Organizational Strategy which are derived from Key Performance Indicators and Program Performance Indicators or Activity Performance Indicators. The alignment measurement method uses the correspondence analysis technique. This study finds that most of the measurement criteria are still dominated by the input aspect, with economic criteria. Performance measurement that focuses on input criteria will have an impact on 1 the orientation of higher education on the budget and does not describe how well the objectives of the program are being implemented. Higher education KPIs should be more result-oriented, the impact of which is on public trust, brand image, reputation, and university performance

Strategic Performance Measurement System and Its Impact on Organizational Effectiveness: A Study of United Arab Emirates Based Organizations

Performance measurement has been subject to a considerable amount of research and attention over the past 15 years. The inadequacy of traditional financially based performance measurement systems and the introduction of nonfinancial measures have been the triggers for much of this research. The purpose of this paper is to review the performance measurement framework (Input-process-output), their application in the UAE based organizations in quality enhancement and to identify gaps in knowledge and practice that suggest future research. The paper draws on the study of performance indicators used in the 6 UAE based organizations. The design of indicators has been covered by many publications, but the design of measures specific and appropriate to UAE based organizations has not been well addressed. Based on the study of these organizations, a conceptual model is proposed that treats performance measurement as an integrated system, based on the TQM philosophy of continuous improvement cycles.

Significant Role of Islamic Work Ethic in Islamic Banking: A Systematic Literature Review and Direction for Future Research

Islamic Work Ethic (IWE) showed a significant role in various Islamic institutions, including Islamic banking. Unfortunately, only a few scholars studied the critical role of IWE in Islamic Banking and how it affected the whole organization. This study attempted to explore the degree of IWE implementation and its implications in Islamic banking. We investigated in-depth 22 articles related to IWE in Islamic banking between 2012-2021 through various reputable journal indexing sites. We concluded that the implication of IWE in Islamic banking is associated with work behavior/attitude, work outcomes, and organizational outcomes. IWE implications related to work behavior included organizational citizenship behavior (OCB), employee attitudes towards organizational change, and auditor's opinion and behavior. IWE implications related to work outcomes included employee job performance, organizational commitment, job satisfaction, and intrinsic motivation. IWE implications related to organizational outcomes included organizational performance, strategic performance measurement systems (SPMS), organizational culture, and customer satisfaction. Thus, due to the enormous implication of IWE in Islamic banking, it's supposed to be integrated with the HR management system, started from HR planning strategy, HR training & development program, performance appraisal system as well as benefit and compensation. Limitations and directions for future research are discussed further.

Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making

There is much enthusiasm for analytics and the measurement of intangibles, such as human capital. In stark contrast, the study of strategic human capital analytics is plagued with definitional disunity, a lack of empirical research, and inconsistent results from the handful of research studies that have been undertaken. This study contributes to the extant literature and academic debate through the original and foundational study of strategic human capital analytics effect on organisation and market performance and mediation by managerial decision-making drawn from the resource-based view, human resource accounting and persuasion theory. Our analyses, from a sample of 383 senior- and middle-level managers, suggest that managerial decision-making determines the extent to which strategic human capital analytics, as part of a strategic performance measurement and management system, improve organisation and market performance. Implications for theory and practice in this emergent field of study are discussed along with directions for future research.

The Impact of Knowledge Transfer on Investment in Knowledge Creation in Firms†‡

ABSTRACTKnowledge is key to success in the modern business landscape. Firms invest billions of dollars every year in knowledge management systems, which commonly use artificial intelligence to allow within‐firm knowledge transfer to occur automatically. Despite this investment, these systems often fall short of producing expected results. Using psychology theory on goal dilution, we argue that a potential cause of the failure is that the prospect of knowledge transfer has a negative effect on knowledge creation. We further propose a mechanism to mitigate that effect. Specifically, we predict that the negative effect of knowledge transfer on knowledge creation will be mitigated when the linkages among firm‐ and unit‐level goals are communicated. We conduct an experiment and find that while, as predicted, the prospect of knowledge transfer has a negative effect on knowledge creation when the linkages among firm‐ and unit‐level goals are not communicated, it has the predicted positive effect when the linkages among firm‐ and unit‐level goals are communicated due to increased goal congruence. Additional analyses provide support for our underlying theories. Our results suggest that firms can adopt and communicate strategic performance measurement systems to improve the knowledge creation in a firm.

The mediating role of fairness on the effectiveness of strategic performance measurement systems

PurposeThis study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs) with SPMS effectiveness.Design/methodology/approachData were collected using an online survey distributed to 656 Australian middle and lower level managers.FindingsThe findings reveal that informational fairness mediates the association between SPMSs (link to value drivers and the use of multidimensional performance measures) with performance-related outcomes; procedural fairness mediates the association between SPMSs (link to strategy and the use of multidimensional performance measures) with staff-related outcomes and distributive fairness mediates the association between the use of SPMSs (all three types) with both performance and staff-related outcomes.Originality/valueThe study provides a unique insight into the importance of fairness (the distributive, informational and procedural fairness of the performance appraisal system) in mediating the associations between the extent of use of SPMSs and SPMS effectiveness. The findings contribute to the human resource management (HRM) “black box” literature by providing an insight into the behavioural mechanism through which a specific human resource management practice (i.e. the SPMS) influences organisational performance.

Development of a balanced scorecard as a strategic performance measurement system for clinical radiology as a cost center

ObjectivesTo develop a goal-oriented indicator system based on the balanced scorecard (BSC) concept, which takes into account the perspectives of the referring physician and patient and emphasizes the focus on the internal processes of the radiology department.MethodsDevelopment of a BSC occurred in six steps: (Step 1) strengths/weaknesses and opportunities/risks (SWOT-) analysis of the radiology department, (Step 2) setting-specific objectives (model, core values, key objective) followed by the development of 4 perspectives, (Step 3) and definition of strategic issues oriented to the value-added chain of the processes of the radiology department. (Step 4) Creation of a “Strategy Map” with regard to the perspective and their cause–effect relationships. (Step 5) Development of an automated key performance indicator (KPI) cockpit for the monitoring, reporting, and management scorecard.ResultsA total of 10 success factors were identified using SWOT analysis. The core values include high quality in clinical, teaching, and research areas. The radiological value-added chain is composed of three processing steps. 1. registration, 2. examination, and 3. reading/X-ray demonstration. Three action programs were derived: 1. increase competency (e.g., specialist standard), 2. improve referring physician/patient satisfaction, 3. increase productivity. Daily process monitoring was added to the management cockpit as a monitoring scorecard. The scorecard comprises 18 KPIs and is automatically updated every month. The annual management scorecard comprises 10 KPIs.ConclusionsThe BSC makes it possible to implement a strategy for radiology that is strongly oriented toward the requirements of the referring physicians and the demands of patients.

RESPON PERILAKU AUDITOR DALAM SISTEM PENGUKURAN KINERJA STRATEGI TEHADAP KINERJA KANTOR AKUNTAN PUBLIK

This study examined the behavioral response to the auditor in the Strategic Performance Measurement System (SPMS) to improve performance of public accounting firms. The population in this study were 170 auditors working in public accounting office Sulawesi. The data analysis technique in this study using AMOS 16.0. The results found that the performance measurement system strategy plays into the source of relevant information by the auditor's job in improving the performance of public accounting firms. While ambiquitas and conflict does not affect the behavior of auditors in improving performance.

Measuring strategic performance in Arab universities: A suggested model (MSP UNIs)

The main objective of this article is to determine the validity of the proposed system for measuring strategic performance (MSP Unis) in Arab universities at the level of its three Perspectives; performance measurement, measurement processes, and measurement potentials. However, most of the Arab universities face difficulties in the measurement of their strategic performance due to cost and the lack of human resources specialists in that field. The study was conducted through a questionnaire consisting of 38 items distributed on a sample of 116 experts working in the field of strategic planning in universities registered in the Association of Arab Universities. So, by the use of factor analysis, the results disclosed a very high degree of correlation between the paragraphs and the three dimensions that make up the system. The results of the statistical analysis demonstrated the validity of the proposed strategic performance measurement system for use in measuring the strategic performance of Arab universities from the viewpoint of respondents with a very high arithmetic average amounted 4.30, and a very high approval rate for the content of the paragraphs reaching to 86%. Accordingly, the current study is consistent with the previous studies. The research recommendations obviously have been concluded as (a) An implementation of the suggested system (MSP Unis) in Arab universities and supporting its implementation’s potentials. (b) A Benefiting from the results of the factor analysis in implementation plans on the level of its three Perspectives. (c) Developing training programs to consolidate the proposed MSP Unis. (d) Enabling strategic planning departments to implement the proposed MSP Unis.

Designing supply chain performance system: a strategic study on Indian manufacturing sector

PurposeA well-designed supply chain performance measurement system, should account for not only the capabilities and performance attributes of the focal firm but also its supply chain partners. The purpose of this paper is to help design a system that strikes a balance between the strategic objectives of the focal firm and its supply partners vis-à-vis the requirements of supply chain performance (cost, quality, speed and customer taste).Design/methodology/approachA theoretical framework on the strategic supply chain performance measurement system is developed based on existing literature and subsequently tested using a survey on 136 successful manufacturing organizations in India. The organizations were clustered into three strategy types and compared using analysis of variance on ranks to look for differences in preference for performance parameters.FindingsThe study examined the five dimensions of the supply chain practices, namely, strategic supply/distribution network, customer relationship, internal operations, information sharing and social and environmental responsiveness. The empirical results demonstrate the inclusion of business strategy orientation in designing today’s supply chain and hence its performance measurement system. Not supported hypotheses were addressed in the light of contextual factors.Research limitations/implicationsThe study is confined to finding preferences of non-financial aspects of supply chain performance and tier-1 suppliers. The research helps better design and benchmark supply chain performance metrics, based on the strategic choice of the firm.Originality/valueThis paper highlights the shortcomings in the existing performance measurement and gaps in the existing literature in the supply chain context. Further, it gives a holistic view of strategic supply chain performance measurement design.

High Performance, Eco-Friendly SPM Cleaning Technology Using Integrated Bench-Single Wafer Cleaning System

Batch SPM systems do not meet the current clean specification/requirements below 28nm. Single wafer SPM systems use a high volume of chemistry which runs to drain, while meeting the cleaning specifications below 28nm. The work in this paper describe the use of a batch SPM system and a single wafer clean in an integrated system, Ultra-C Tahoe which results in meeting the technical specification and using less that 80% of the SPM chemistry used in single wafer systems. The data collected shows this new system meet the specifications, whilst saving more than 80%of SPM chemistry.

The role of information or the information from roles? A meta-analysis of planning and performance

We use meta-analytic structural equation modeling (MASEM) to examine how organizational planning leads to managerial performance. Specifically, we test a theoretically-driven model of how participative budgeting and strategic performance measurement systems can positively impact managerial job performance through role clarity. Our analyses of 60 studies (containing 99 effect sizes) from multidisciplinary literature indicate role clarity mediates the relationship between planning implementation processes and managerial job performance. Additionally, and contrary to previous research, path analysis suggests job-relevant information mediates the relationship between role clarity and managerial job performance. We explain how participation in planning may prompt managers who are clear about their roles to seek additional information in order to perform well. Finally, we identify a need in future research for a greater diversity of the operationalizations of the constructs, levels of analysis, and data collection methods.