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Strategic alignment of manufacturing processes in a Balanced Scorecard-based compensation plan: a theory illustration case

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  • V. DECOENE
  • W. BRUGGEMAN

Abstract

The present paper integrates the operations management and the management control literature in order to focus on the issue of strategic alignment of manufacturing processes in a Balanced Scorecard-based compensation plan. The specific objectives for this paper are twofold. First, the study offers a theoretical foundation for the thesis that alignment of manufacturing processes with business strategy will result in higher organizational performance. Second, a case study at a Belgian manufacturing division of a Danish Corporate Company shows that it is not possible to realize higher organizational performance when there is no strategic alignment of manufacturing processes.

Suggested Citation

  • V. Decoene & W. Bruggeman, 2003. "Strategic alignment of manufacturing processes in a Balanced Scorecard-based compensation plan: a theory illustration case," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/200, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:03/200
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    File URL: http://wps-feb.ugent.be/Papers/wp_03_200.pdf
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    References listed on IDEAS

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    1. Baker, George P & Jensen, Michael C & Murphy, Kevin J, 1988. " Compensation and Incentives: Practice vs. Theory," Journal of Finance, American Finance Association, vol. 43(3), pages 593-616, July.
    2. Bonner, Sarah E. & Sprinkle, Geoffrey B., 2002. "The effects of monetary incentives on effort and task performance: theories, evidence, and a framework for research," Accounting, Organizations and Society, Elsevier, vol. 27(4-5), pages 303-345.
    3. Abernethy, Margaret A. & Lillis, Anne M., 1995. "The impact of manufacturing flexibility on management control system design," Accounting, Organizations and Society, Elsevier, vol. 20(4), pages 241-258, May.
    4. Perera, S. & Harrison, G. & Poole, M., 1997. "Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: A research note," Accounting, Organizations and Society, Elsevier, vol. 22(6), pages 557-572, August.
    5. Chenhall, Robert H., 2003. "Management control systems design within its organizational context: findings from contingency-based research and directions for the future," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 127-168.
    6. Epstein, Marc & Manzoni, Jean-François, 1998. "Implementing corporate strategy:: From Tableaux de Bord to balanced scorecards," European Management Journal, Elsevier, vol. 16(2), pages 190-203, April.
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    Cited by:

    1. Denis Choffel & François Meyssonnier, 2005. "Dix Ans De Debats Autour Du Balanced Scorecard," Post-Print halshs-00581157, HAL.

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