The influence of strategy map communications and individual differences on multidimensional performance evaluations

David Lowe, Salvador Carmona-Moreno, Philip Reckers

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

Multidimensional performance evaluation systems such as the Balanced Scorecard (BSC) were developed to overcome the documented tendency of managers to focus almost exclusively on short-term financial performance measures while disregarding or de-emphasising other shortterm and/or long-term non-financial performance measures. Evidence suggests, however, that implementation of many of these systems has not achieved desired outcomes. Cogent communication of a corporation's goals and management's strategy to achieve those goals can be expected to influence employee 'buy-in' and the subsequent use or resistance to multidimensional performance measures. In this study we examine the role of strategy maps in communicating goals and strategy. We also examine individual differences (tolerance of ambiguity and functional background) that we believe also influence individuals to be more (or less) receptive to the guidance of strategy maps. An experiment was conducted with 165 experienced professionals enrolled in MBA programmes in Spain and the US. Our experimental results indicate that a strategy map reflecting integrated dependencies can debias evaluations of certain groups of individuals, who have high tolerance for ambiguity and have a financial work background. Implications and suggestions for future research are also provided.

Original languageEnglish (US)
Pages (from-to)375-391
Number of pages17
JournalAccounting and Business Research
Volume41
Issue number4
DOIs
StatePublished - Sep 1 2011

Keywords

  • Balanced scorecard
  • De-biasing
  • Performance evaluations
  • Strategy maps

ASJC Scopus subject areas

  • Accounting

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