Purpose: This paper examines the influences of performance measurement (PM) on not-forprofit organizations' stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders.Design/methodology/approach: An in-depth case study is conducted in a large not-for-profit organization in the United Kingdom. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed.Findings: Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile or inhibit stakeholders' understandings and propensity to act towards goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with.
Research implications/limitations:A theoretical framework is proposed for how PM practices firstly interact with stakeholders at a cognitive level and secondly influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities.