Management Accounting Section Midyear Meeting

Effects of Strategic Performance Measurement Systems Over Profitability, Evidence from Emerging Markets

• In Event: Break/Research Exhibition 2: Performance Measurement and Control Systems

Abstract

This paper compares the impact of different configurations of Strategic Performance Measurement Systems (SPMS) over financial performance in Latin-American firms. We adopt the attention-based view approach to argue that SPMS impact on performance depends on the functional areas of business where decision-makers place their attention, rather than the tool itself. We compare the performance effect of nine SPMS alone and combined, and classify them into three functional areas of business: Accounting and Control, Information Systems, and Management. While we did not find an impact of a specific SPMS over performance, we find that organizations that cover all three core functional areas of business, obtain better performance than organizations that include them partially. Moreover, we find that the performance effect of SPMS is contingent on the type of strategy the firms implement as well as their business diversification level.

Authors

• Mauricio Melgarejo, Butler University

• Carlos Rodriguez, INCAE Business School

• Jose Torres, Rice University