Strategic Performance Measurement 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.

Strategic alignment in multispecialty hospitals: Implementing a balanced scorecard approach for optimal performance

The study investigates the relationship between strategic alignment, balanced scorecard (BSC) implementation, and optimal performance (OP) in multispecialty hospitals. Data from 530 healthcare professionals in Lucknow, Varanasi, Kanpur, and Prayagraj were collected using a cross-sectional design. Descriptive statistics, correlation analysis, and regression analysis were employed for data analysis. The results demonstrate significant positive relationships between strategic alignment, balanced scorecard, and optimal performance. Both strategic alignment and balanced scorecards were identified as significant predictors of optimal performance, indicating that higher scores in these constructs are associated with higher levels of performance. The findings underscore the critical role of strategic alignment and performance measurement frameworks in enhancing organizational performance in healthcare settings. However, the study faces limitations, including reliance on self-reported data and limited generalizability to other healthcare settings and regions. Future research should explore longitudinal or experimental designs and incorporate objective performance measures to enhance the validity and generalizability of the findings. Overall, the study contributes to understanding strategic management practices in healthcare organizations and highlights avenues for further research in this area.

Banks Strategic Performance Measurement: A Case Study from Jordan

Banks Strategic Performance Measurement: A Case Study from Jordan

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

Exploring EO strategic performance measures: value-added versus efficiency outcomes

PurposeResearch on entrepreneurial orientation (EO) seeks to understand the EO–performance relationship. However, at a strategic level, performance relates to a competitive advantage and comprises both value-added and efficiency measures. Following arguments that performance is context and strategy dependent, the paper argues that EO research needs to clarify and specify the type of performance relationship measured.Design/methodology/approachTo explore the EO–performance relationship, the research considers the agricultural sector where policy has traditionally encouraged the maximisation of efficiency in production and has only recently promoted entrepreneurship, providing fertile ground to explore different approaches to measuring performance. A survey collected detailed accounting records and context specific EO for 282 commercial farms. The authors estimate two models (Heckman selection regression and stochastic production frontier) that examine the relationships between EO and value-added/efficiency performance outcomes.FindingsThe analysis confirms the EO–value-added performance relationship, with significant positive relationships for the EO components proactiveness and innovativeness and a negative relationship for risk. No EO–efficiency performance relationship was found, despite a robust analysis of technical efficiency using detailed accounting data.Originality/valueThe paper contributes to EO theory by problematizing performance and highlighting the importance of the type of performance measured. This paper contributes empirically with findings relating to a mature industry contributes to entrepreneurship methodology by outlining how EO–performance relationships can be measured in terms of productivity and technical efficiency.

The Return of Decentralization Greek Local Government Response to the COVID-19 Pandemic

The COVID-19 pandemic was one of the greatest crisis faced by humanity. It had a significant negative impact that affected public health, the society, the economy, and the performance of public administration. Although national administrative system's response to COVID-19 pandemic was set up, the performance and the resilience of strategic management patterns at national and local level was also initiated. This paper focuses on identifying and evaluating the strategies and models adopted by Greek local government to build resilience during the COVID-19 crisis. The results of the research are based on an empirical survey conducted in 27 municipal authorities in Greece, which showed that despite the various government policy initiatives and funding provided during the last decade and the formal introduction of crisis management and resilience focused planning models, urban resilience is downgrading due to the continuation of important implementation and compliance gaps in strategic planning and performance measurement adoption from the municipal authorities and the lack of an effective model of multi-level coordination among policy’s stakeholders.

Strategic Performance Measurement and Management: The Distinctive Nature of the Public Sector and Implications on Performance Measures

Purpose : Strategic performance measurement and management (SPMM) as a subject has come over increased research radar over the last four or so decades. The so-called “performance measurement revolution” of the 1980s to 1990s concentrated on the private sector. “Business managerialism” and “accountingisation” kicked-in into the public sector with transplanting of hitherto private sector management techniques under New Public Management (NPM) and other administrative reform programmes by various governments internationally. Specifically, the 1990s saw the implementation of modern multi-dimensional SPMM systems originally in the private sector. Considering the nuanced nature of the public sector, the transfer of SPMM systems from the private to the public sector has not been straightforward due to technical, conceptual and behavioral factors. This paper contrasts the features of the private and public sectors and investigates the implication of the distinctive nature of the public sector on the application of SPMM in the public sector. This will augment our perceptions and comprehension of existing public sector SPMM theory and practice. Design/Methodology/Approach: The study adopted a systematic literature review (SLR), a mode of research which has been widely adopted and strongly justified for adoption in business and management research since the turn of the 21st century. The study conducted a content and thematic analysis on the commonalities and differences between private and public sectors and implication of the differences on public sector strategic performance measurement and management. The study itself covered 233 published and unpublished documents covering the seven decades to 2023 which to our knowledge constitutes the most comprehensive update on the public-private debate trends to date. Findings: The study thoroughly interrogated the literature perspectives or models on the commonalities and differences between the public and private sectors. The study then deep-dived into the underlying characteristics which differentiate the public and private sectors producing one of the most detailed side-by-side analyses of public-private differentiation based on organisational characteristics, dimension, or concept of all time. The systematic review further identified and derived several thematic areas related to public-private differences and went on to establish the implications of the public-private divergences from an SPMM perspective especially as it relates to the derivation and application of public sector performance measures. These findings are critical for both practitioners and academics as they explore the subject of transplanting private sector SPMM practices into the public sector which is another overripe area for research. The findings provide public managers with a comprehensive and critical cog in their management toolbox as they navigate the practical realities and difficulties of implementing SPMM in the public sector’s unique and complex environment. Research Limitations: The main challenge with conducting a comprehensive research of this magnitude relates mainly to the broad range of literature covered, the unwieldy and onerous analysis and lots of judgement calls which could impact bias and replicability. Practical Implications - This paper conducts a comparative analysis of the key features of the private and public sectors found in the literature and evaluates how they drive attendant management practices in the two sectors and specifically how the public sector’s distinctive nature impacts on the measures of performance. Originality/value - Studying the differences and how they impact the choice of public sector KPIs is crucial in attempting to address the myriad of challenges and potential hindrances to future institutionalisation of SPMM in contemporary PSOs. Exploring and understanding the differences and similarities between public and private sectors is a beneficial springboard to cultivate erudition, cross-pollination and facilitation of knowledge transfer between the two sectors of the contemporary global political economy. Keywords: Strategic, performance management, performance measurement, performance measures, key performance indicators, public-private differences DOI: 10.7176/PPAR/13-2-03 Publication date: March 31 st 2023

Differing paths to organizational performance: strategic implications of resource transformation and capability reinforcement

Abstract Globally, organizations have little insight into mechanisms that enable them to leverage their resources and capabilities successfully. In that endeavor, this study demonstrates that organizations can achieve competitive advantages through resource transformation and capability reinforcement. Using a conceptual framework grounded in the resource-based view and the dynamic capabilities theory in combination with Miles and Snow typology, we show how different types of organizations can succeed in the currently evolving competitive landscape by developing mechanisms that match the strategic performance measures of the organizations, such as return on assets or Tobin's Q. Notably, analyzing data obtained from 114 firms with seemingly unrelated regression, the findings reveal central roles of alternating mechanisms that drive differential organizational performance and enable the organizations to successfully deploy resources and capabilities.

The Relation Among Business Process Orientation Practices in Influencing Organizational Performance

Organizations always look for ways to improve their performance to survive in the business environment. One way to improve organizational performance is to improve business process orientation (BPO). Several studies identified practices that can be implemented and significantly impact an organization’s BPO maturity. These practices are called Critical Practices (CPs) strategic view, process definition and documentation, process measurement and management, organizational process structure, people management, process organizational culture, market orientation, supplier view, and information technology. However, most studies treat CPs independently, and the relationship between CPs and between CPs with organizational performance has not been addressed. This study tests and confirms the relationship between CPs, BPO, and organizational performance. Based on the literature, a structural model of the relationship between CPs and organizational performance is developed. An online questionnaire is designed to collect data from various organizations in Indonesia. The survey results are analyzed using Structural Equation Modeling (SEM) to investigate the relationship between variables. Most hypothesized relationships between CPs are confirmed except the relationship between supplier practices (SU) and culture (CT), which are not supported. Not all practices affect organizational performance directly, but they must be mediated by other practices to have a significant effect. The results suggest that to improve organizational performance, an organization needs to improve the practice of strategic view (SV), performance measurement (PM), customer (CU), process definition (PD), and information technology (IT).

How The Reliance on Integrative Strategic Performance Measurement affects Organizational Performance, and Employee Motivation: The Mediatory Role of Business Strategy

How The Reliance on Integrative Strategic Performance Measurement affects Organizational Performance, and Employee Motivation: The Mediatory Role of Business Strategy

SMA-Technique Strategic Planning, Control and Performance Measurement in Village-Owned Enterprises in Indonesia

This study was conducted to find empirical evidence of a causal relationship between organizational size, market orientation, and strategic planning, control, and performance measurement in the strategic management accounting (SMA) technique of village-owned enterprises in Indonesia. This research is based on contingency theory. The objects of this research are 51 village-owned enterprises in Indonesia. Respondents in this study were administrators (managers) of village-owned enterprises in Indonesia. The research instrument used was questionnaire that developed by Simon and Guilding (2008) for SMA techniques. The hypotheses were tested using SEM – PLS, that is Warppls 6.0. The results showed that market orientation had a significant effect on the development of strategic planning, control, and performance measurement of the SMA technique in village-owned enterprises in Indonesia, while organizational size had no significant effect. Keywords: market orientation; organizational size; strategic management accounting .

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 a number of 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 (KPI) and Program Performance Indicators or Activity Performance Indicators. Alignment measurement method uses correspondence analysis technique. This study finds that most of the measurement criteria are still dominated by the economic aspect.

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.