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In a Performance Measurement System, Is It Job-Relevant Information or Its Decision-Making Use that Leads to Better Performance?
Laurie L. Burney,
Mississippi State University
Michele Matherly, University of North Carolina at Charlotte
ABSTRACT. Prior budgeting studies consistently report that participation improves individual performance, and that this relation is mediated by the availability of job-relevant information (JRI). However, anecdotal evidence in the strategic performance measurement system (SPMS) literature suggests that having measures available (data) does not necessarily mean that they are used for decision-making (information). To explore this distinction, we investigate whether JRI’s relation to performance is associated with the measures’ use in decision-making. Based on 698 usable responses from a survey of financial managers (50% response rate), we successfully replicate Kren’s (1992) findings in a performance measurement system context. More importantly, we find that information’s decision-making use partially mediates the JRI-Performance relation. Overall, our results imply that organizations should make a concerted effort to increase the use of relevant measures to fully benefit from having a SPMS.
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