How Strategic Priorities Are Reflected in Features of Strategic Performance Measurement System?

Abstract

Strategic Performance Measurement Systems (SPMSs) are designed to present integrated information, which together with other controls in Management Control Systems (MCSs) helps managers to implement strategy properly and thus outperform the company's competitors. A wide range of potential factors impacting the design and use of SPMS and MCS has been studied by proponents of the contingency theory since the 1980s who soon found strategy to be one of the most dominant contingencies. But recent reviews of contingency theory provide mixed, sometimes even conflicting evidence, partly because of inconsistent definitions of MCS and SPMS, partly because of exploring contingencies in isolation from other context factors and components. This article addresses both of these challenges. Firstly, it introduces four distinctive features of SPMS and complements them with often neglected "Beliefs" and "Boundaries" controls from the influential MCS framework "Levers of Control" devised by Simons (1995). Secondly, the resulting MCS concept is tested by PLS-SEM whether or not it is influenced by contingency factors of size, industry and especially by two opposing Porter's generic strategic prioritiesdifferentiation and/or cost-leadership (low prices). Surprisingly, only the former is found to be positively connected to the features of SPMS, however, the link is not direct but mediated by improvements in Boundaries and Beliefs. So the study broadens current knowledge on antecedents of SPMSs, that are applied in the medium-sized and large companies. At the same time, the study urges managers trying to implement differentiation strategy not only to establish the SPMS with all analyzed features, but concurrently to promote values and other belief controls as well as to set organizational rules and boundaries. In other words, the implementation of differentiation strategy has to be accompanied by establishment of the MCS incl. Beliefs and Boundaries, not just SPMS. Contrary to this implication, in case of low-price strategy, the detailed analysis proves that Belief and Boundary components of MCS are not very important tools for achieving cost-leadership.

Dynamic Capabilities and Strategic Control Systems: A Study at Itaipu Binacional

“…For this research, Simons´ (1995) model of strategic levers of control proved to be more adequate, as this methodology considers the rationality of traditional management models, thus mitigating risk, but on the other hand also encourages experimentation, a factor so important in highly competitive and changeable environments. The strategic levers of control framework proposed by Simons (1995), although not recent, at least according to the meta-analysis performed by Pujiati et al (2019), has received continuous attention from researchers in the field of strategy and management control (Cruz et al, 2015;Naranjo-Gil, 2016;Oro & Lavarda, 2019;Siska, 2018). According to Simons (1995), this framework encompasses four systems (levers) which provide top management with the necessary tools to implement a strategy, creating opposing self-balancing forces.…”

Capacidades Dinâmicas e Sistemas de Controles Estratégicos: um Estudo na Itaipu Binacional

“…Para esta pesquisa, o modelo das alavancas de controle estratégico de Simons (1995) é mais adequado, porque essa metodologia considera a racionalidade dos modelos tradicionais de gestão, mitigando desta forma o risco, mas, por outro lado, estimula a experimentação, tão importante em ambientes de alta competição e mudanças. O framework das alavancas de controle estratégico proposto por Simons (1995), embora não recente, conforme metanálise realizada por Pujiati et al (2019), tem recebido constante atenção por parte dos pesquisadores da área de estratégia e controles de gestão (Cruz et al, 2015;Naranjo-Gil, 2016;Oro & Lavarda, 2019;Siska, 2018). De acordo com Simons (1995), o framework é composto por quatro sistemas (alavancas), que proporcionam à alta gestão as ferramentas necessárias para que a estratégia seja implementada, criando forças opositoras e autoequilibradas.…”

A Internet das coisas como recurso interativo na aprendizagem: Benefícios percebidos por discentes de Ciências Contábeis

“…No entanto, destes, em dois questionários houve missings, abrangendo um total de cinco assertivas. Para garantir a preservação da maior quantidade de dados possíveis, observando que os missings correspondem a menos de 5%, tratou-se os dados ausentes inserindo a média dos demais respondentes na mesma assertiva (Nascimento & Macedo, 2016;Siska, 2018).…”