Examining the joint effects of strategic priorities, use of management control systems, and personal background on hospital performance

This study aims to respond to recent calls for a better understanding of the factors that support the effectiveness of formal control practices in hospitals. Based on survey data from 117 top-level managers in Belgian hospitals, the study investigates the performance effects of the alignment between the use of performance measurement systems (PMS), strategic priorities, and the particular role top-level managers’ personal background plays in this context. The quantitative results suggest that it is the top-level managers’ personal background that brings to life the benefits of the alignment between the use of PMS and strategic priorities in hospitals. Specifically, this paper shows that when the emphasis on partnership or governance strategic priority is high, the effect of the interactive use of PMS on hospital performance is more positive for top-level managers with a clinical background than for those with an administrative background. This study offers value for practitioners in that it supports the argument that hospitals can benefit from involving physicians in the top-level management team.