Influences of timeline and perceived strategy effectiveness on balanced scorecard performance evaluation judgments

Eric N. Johnson, Philip Reckers, Geoffrey D. Bartlett

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

This study examines evaluator ratings of subordinate performance in implementing a new corporate strategy in a Balanced Scorecard environment. We focus on two factors predicted to influence strategic performance judgments: (1) the presence or absence of an explicit timeline for strategy implementation, and (2) the evaluator's perceptions of the effectiveness of the new strategy. One hundred eleven M.B.A. students averaging over eight years of work experience participated in the study. Consistent with predictions, we find that (1) absence of an implementation timeline was associated with fixation on lagging financial performance measures outside of the subordinate's time span of control, and (2) evaluator perceptions of the strategy's effectiveness were positively associated with evaluations of strategy-congruent performance. These results extend prior research by highlighting the importance of the time dimension and perceptions of strategy effectiveness in performance judgments. Implications for future research in strategic performance evaluation are discussed.

Original languageEnglish (US)
Pages (from-to)165-184
Number of pages20
JournalJournal of Management Accounting Research
Volume26
Issue number1
DOIs
StatePublished - 2014

Fingerprint

Performance evaluation
Balanced score card
Evaluator
Corporate strategy
Financial performance
Performance measures
Factors
Prediction
Work experience
Evaluation
Span of control
Rating
Strategy implementation

Keywords

  • Balanced scorecard
  • Performance evaluation
  • Strategy implementation
  • Timeline

ASJC Scopus subject areas

  • Accounting
  • Business and International Management

Cite this

Influences of timeline and perceived strategy effectiveness on balanced scorecard performance evaluation judgments. / Johnson, Eric N.; Reckers, Philip; Bartlett, Geoffrey D.

In: Journal of Management Accounting Research, Vol. 26, No. 1, 2014, p. 165-184.

Research output: Contribution to journalArticle

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