Abstract
We draw on a five-year longitudinal data set to investigate the influence of performance measurement in the processual dynamics of strategic change, particularly in enacting effective strategic change. Our model examines the role of performance measurement in driving strategy-consistent operational changes and in ensuring that the desired objectives of the strategic change process are achieved. We investigate these roles for performance measurement over time and empirically document lags between changes in strategic priorities, changes in operational processes, and subsequent changes in firm performance. We find that performance measurement supports the implementation of strategic change by influencing the extent to which changes to operational tasks and activities are made in response to new strategic priorities, as well as influencing the quality and impact of these operational changes, as reflected in improved contemporaneous and future firm performance.
| Original language | English |
|---|---|
| Pages (from-to) | 640-659 |
| Number of pages | 20 |
| Journal | Management Science |
| Volume | 67 |
| Issue number | 1 |
| Early online date | 11 Jun 2020 |
| DOIs | |
| Publication status | Published - Jan 2021 |
Funding
History: Accepted by Suraj Srinivasan, accounting. Funding: This work was supported by the Faculty of Business and Economics of the University of Melbourne. The authors thank the Australian Bureau of Statistics for its assistance in accessing the data. They also thank the Faculty of Business and Economics of the University of Melbourne for providing financial support for this project. They are grateful to Chung Yu Hung, Anne Lillis, Sujay Nair, Ra-Pee Pattana-panyasat, Martijn Schoute, Ruidi Shang, Jacco Wielhouwer,
Keywords
- Firm performance
- Performance measurement
- Strategic change