The role of performance measurement systems in strategy formulation processes

Xavier Gimbert, Josep Bisbe, Xavier Mendoza

Producción científica: Artículo en revista indizadaArtículorevisión exhaustiva

136 Citas (Scopus)

Resumen

Since most studies have focused on the role of strategic performance measurement systems (SPMSs) in communicating the firm's strategy and facilitating its execution and control, little is known about the role they might potentially play in shaping strategy (re)formulation processes. In this paper, we examine whether organisations that use SPMSs engage in strategy formulation processes differently from those that use performance measurement systems (PMSs) which do not qualify as SPMSs, or those which do not use any type of PMS. In particular, we hypothesise that the use of SPMSs will relate to 1) a greater frequency of strategy (re)formulations, and 2) a more comprehensive strategic agenda, reflected through a greater number and a wider variety of strategic decisions in each strategy (re)formulation. Empirical data gathered from surveys completed by 349 CEOs of medium and large Spanish companies provide support for a positive association between the use of SPMSs and both the number and variety of strategic decisions taken in each strategic review. Our findings suggest that the use of SPMSs (as opposed to other forms of PMS) by an organisation's top management team translates into a more comprehensive strategic agenda. Prior studies have shown that strategic agendas shape the extent and direction of corporate strategic change.

Idioma originalInglés
Páginas (desde-hasta)477-497
Número de páginas21
PublicaciónLong Range Planning
Volumen43
N.º4
DOI
EstadoPublicada - ago 2010
Publicado de forma externa

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