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The Decision-Facilitating and Decision-Influencing Roles of Performance Measurement Information
Jennifer Grafton, University of Melbourne
Anne M Lillis, University of Melbourne
Sally K Widener, Rice University
ABSTRACT. This study examines the impact of the interaction between two roles of performance measurement information – the decision facilitating (DF) and the decision influencing (DI) roles. While there are extensive literatures addressing the normative design attributes of DF performance measurement systems (eg the Balanced Scorecard literature) and the decision impacts of measures used in DI (eg the contracting literature), the two roles are rarely studied simultaneously. Using a structural equation model, we find that the extent to which DF measures are captured in DI mechanisms is a significant driver of the use of those measures, which in turn impacts on the adaptive capability of the organization and its performance. Overall the results support the proposition that the inclusion of DF measures in a DI role impacts on the effort allocation of subordinate managers and their propensity to actually use those measures.
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