Empirical performance management research: observations from AOS and MAR

Abstract

Purpose -This paper seeks to respond to Otley's calls for future research to take an integrated and longitudinal approach to examining the operation of performance management in real organizations. The paper reviews 120 field studies published in Accounting, Organizations and Society and Management Accounting Research over the past 15 years. Design/methodology/approach -The Otley's performance management framework is used to classify the field studies in terms of five central issues that relate to objectives, strategies, target setting, reward systems, and information flows. Findings -The key findings are that only nine field studies examine the integrated performance management framework in any depth, and the research to date is fragmentary with regard to, for example, the performance management issues studied and theories used. Research limitations/implications -Implications from this research include the need to examine the operation of the integrated performance management framework together with in-depth research methods to understand the system in use, rather than the intended design of performance management processes. Future theoretical development could also be enhanced by better selection of research sites and building on prior studies. The limitations of this review include journal bias and limitations associated with classifying the diverse range of field studies using any framework, including the Otley's framework. Originality/value -The novelty of this review lies in using Otley's framework to classify the expansive performance management literature and to document the extent of the integrative nature of the field studies, the depth of the studies, and the diversity of theories applied.

The design and use of performance management systems: An extended framework for analysis

“…Ittner and Larcker, 2001), which focus only on for-profit entities. Stringer (2007) maintains that the main strength is the breath of performance issues it includes and its integrated nature. Second, the general nature of the framework enables other frameworks to be used to complement its interpretations and insights, as shown by the Tuomela (2005) and Ferreira (2002) studies.…”

“…A more explicit consideration of the process of change and of its dynamics would clearly enrich the study of MCS. Finally, it has also been noted that the interconnections between different parts of the performance management system are not explicitly addressed (Malmi and Granulund, 2005;Stringer, 2007). ' (1995) levers of control framework Simons (1995) proposed the levers of control (LOC) framework as a tool for the implementation and control of business strategies.…”

“…Similarly, Tuomela (2005) has drawn on this framework to present the findings of his case study that investigated the introduction of a new performance measurement system. More recently, Stringer (2007) has drawn extensively on the framework to evaluate research published in two major journals. She found that less than one tenth of the studies examined displayed an integrated approach to the study of performance management and that research is generally fragmentary.…”

The Importance Of Performance Management Tools Usage For Surviving The Economic Crisis

“…Kaplan & Norton, 1996, 2008. The design and use of PM tools to enhance performance are of central interest to managers in firms and to management accounting researchers (Stringer, 2007). Firms are continually adapting their PM tools to help them survive in the dynamic business environments in which they operate (Otley, 1994).…”

Management control systems in logistics and supply chain management: a literature review

“…As the focus of our study is on MCS in a certain area of application, the framework has to consider a management accounting and control perspective. A well-established framework [41,42] that fulfills this requirement to be used for the purpose of this review was developed by Otley [18]. Its character is rather descriptive than normative [43], and aims at providing a holistic view about the existing practices in the field of management accounting and control systems.…”