The Influence of Performance Measurement on the Processual Dynamics of Strategic Change

Forthcoming in Management Science

Posted: 13 Aug 2020

See all articles by Margaret A. Abernethy

Margaret A. Abernethy

University of Melbourne, Department of Accounting

Henri C. Dekker

VU University Amsterdam

Jennifer Grafton

The University of Melbourne

Date Written: June 11, 2020

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.

Keywords: Performance Measurement, Strategic Change, Firm Performance

Suggested Citation

Abernethy, Margaret A. and Dekker, Henri C. and Grafton, Jennifer, The Influence of Performance Measurement on the Processual Dynamics of Strategic Change (June 11, 2020). Forthcoming in Management Science, Available at SSRN: https://ssrn.com/abstract=3650461

Margaret A. Abernethy (Contact Author)

University of Melbourne, Department of Accounting ( email )

Victoria
Melbourne, Victoria 3010 3010
Australia
+61 3 8344 7655 (Phone)
+61 3 9349 2397 (Fax)

Henri C. Dekker

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands

Jennifer Grafton

The University of Melbourne ( email )

198 Berkeley Street
The University of Melbourne, Victoria 3010
Australia

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