Using strategic performance measurement systems for strategy formulation: Does it work in dynamic environments?

Josep Bisbe, Ricardo Malagueño

Research output: Contribution to journalArticlepeer-review

113 Citations (Scopus)
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Abstract

This paper examines how strategic performance measurement systems (SPMS)
influence organisational performance through the shaping of the strategic agendas and strategic decision arrays that result from the processes of (re)formulation of intended strategies. Using a combination of archival and survey data collected from 267 medium and large Spanish companies, we find evidence supporting a positive association between SPMS and organisational performance which is mediated by the comprehensiveness of the strategic decision arrays. We find this mediation is negatively moderated by the level of environmental dynamism, so that the comprehensiveness of strategic decision arrays that result from strategy (re)formulation processes mediates the association between SPMS and organisational performance when environmental dynamism is low, but not when environmental dynamism is high.
Original languageEnglish
Pages (from-to)296-311
Number of pages16
JournalManagement Accounting Research
Volume23
Issue number4
DOIs
Publication statusPublished - 1 Dec 2012

Keywords

  • strategic performance measurement systems
  • balanced scorecard
  • strategy formulation
  • organisational performance
  • strategyenvironmental dynamism

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