IDEAS home Printed from https://ideas.repec.org/a/bla/joares/v54y2016i1p113-146.html
   My bibliography  Save this article

The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device

Author

Listed:
  • YASHENG CHEN
  • JOHNNY JERMIAS
  • TOTA PANGGABEAN

Abstract

This paper investigates the role of visual attention in managerial judgments during balanced‐scorecard performance evaluations. Using the Locarna eye tracker to establish the amount of time managers spent focused on visual cues, we found that managers who look more at strategically linked performance measures are more likely to make decisions consistent with the achievement of their subordinates’ strategic objectives. When aware of strategy, managers focused more on strategically linked performance measures than on nonlinked measures. The presentation format of the strategy information did not significantly affect this focus. Our findings indicate that awareness of strategically linked performance measures, but not their presentation, appears to be important in helping managers to make better decisions. This study contributes to the management accounting literature by generating useful insights into the impact of visual attention on judgments and decision‐making processes.

Suggested Citation

  • Yasheng Chen & Johnny Jermias & Tota Panggabean, 2016. "The Role of Visual Attention in the Managerial Judgment of Balanced‐Scorecard Performance Evaluation: Insights from Using an Eye‐Tracking Device," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 113-146, March.
    • Handle: RePEc:bla:joares:v:54:y:2016:i:1:p:113-146
    DOI: 10.1111/1475-679X.12102
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-679X.12102
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1475-679X.12102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrew J. Hoffman & William Ocasio, 2001. "Not All Events Are Attended Equally: Toward a Middle-Range Theory of Industry Attention to External Events," Organization Science, INFORMS, vol. 12(4), pages 414-434, August.
    2. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    3. Rosbergen, Edward & Pieters, Rik & Wedel, Michel, 1997. "Visual Attention to Advertising: A Segment-Level Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(3), pages 305-314, December.
    4. Wedel, Michel & Pieters, Rik, 2008. "Eye Tracking for Visual Marketing," Foundations and Trends(R) in Marketing, now publishers, vol. 1(4), pages 231-320, August.
    5. Cardinaels, Eddy, 2008. "The interplay between cost accounting knowledge and presentation formats in cost-based decision-making," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 582-602, August.
    6. Banker, Rajiv D. & Chang, Hsihui & Pizzini, Mina, 2011. "The judgmental effects of strategy maps in balanced scorecard performance evaluations," International Journal of Accounting Information Systems, Elsevier, vol. 12(4), pages 259-279.
    7. Birnberg, Jacob G. & Shields, Michael D., 1984. "The role of attention and memory in accounting decisions," Accounting, Organizations and Society, Elsevier, vol. 9(3-4), pages 365-382, October.
    8. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    9. Rosbergen, E. & Pieters, R. & Wedel, M., 1997. "Visual attention to advertising : A segment-level analysis," Other publications TiSEM c77552c4-5b16-4ecb-8a21-2, Tilburg University, School of Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dalla Via, Nicola & Perego, Paolo & van Rinsum, Marcel, 2019. "How accountability type influences information search processes and decision quality," Accounting, Organizations and Society, Elsevier, vol. 75(C), pages 79-91.
    2. Brian D. Knox, 2020. "A strategy map’s effect on the feedback that middle managers pass along to upper management," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(4), pages 381-404, February.
    3. Jingyu Li & Yigang Pan & Yi Yang & Caleb H. Tse, 2022. "Digital platform attention and international sales: An attention-based view," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1817-1835, October.
    4. Borozan, Miloš & Loreta, Cannito & Riccardo, Palumbo, 2022. "Eye-tracking for the study of financial decision-making: A systematic review of the literature," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    5. Brian D. Knox, 2021. "A replication about cause–effect linkage benefits and managers’ strategic judgments," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(2), pages 225-251, June.
    6. Eric Floyd & Michael Hallsworth & John List & Robert Metcalfe & Kristian Rotaru & Ivo Vlaev, 2022. "What motivates people to pay their taxes? Evidence from four experiments on tax compliance," Natural Field Experiments 00750, The Field Experiments Website.
    7. Kerry A. Humphreys, 2023. "The balanced scorecard: Do managers need a strategy map when evaluating performance?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4357-4373, December.
    8. Ivo Hristov & Antonio Chirico, 2023. "The cultural dimension as a key value driver of the sustainable development at a strategic level: an integrated five-dimensional approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7011-7028, July.
    9. Sara Fanati Rashidi, 2020. "Studying productivity using a synergy between the balanced scorecard and analytic network process," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1404-1421, December.
    10. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    11. Svitlana Kuznetsova, 2017. "Evaluation of Accounting Information for Making Management Decisions," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 21-26, June.
    12. Kai A. Bauch & Peter Kotzian & Barbara E. Weißenberger, 2021. "Likeability in subjective performance evaluations: does it bias managers’ weighting of performance measures?," Journal of Business Economics, Springer, vol. 91(1), pages 35-59, February.
    13. Michel Wedel & Rik Pieters & Ralf Lans, 2023. "Modeling Eye Movements During Decision Making: A Review," Psychometrika, Springer;The Psychometric Society, vol. 88(2), pages 697-729, June.
    14. Victor S. Maas & Niels Verdoorn, 2017. "The effects of performance report layout on managers’ subjective evaluation judgments," Accounting and Business Research, Taylor & Francis Journals, vol. 47(7), pages 731-751, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martinovici, A., 2019. "Revealing attention - how eye movements predict brand choice and moment of choice," Other publications TiSEM 7dca38a5-9f78-4aee-bd81-c, Tilburg University, School of Economics and Management.
    2. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    3. Rosbergen, Edward & Wedel, Michel & Pieters, Rik, 1997. "Analyzing visual attention tot repeated print advertising using scanpath theory," Research Report 97B32, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    4. Antoaneta P Petkova, 2016. "Standing Out or Blending In? The Formation of New Firms’ Legitimacy and Reputation under Different Levels of Market Uncertainty," Corporate Reputation Review, Palgrave Macmillan, vol. 19(1), pages 22-34, February.
    5. Yuri Borgianni & Lorenzo Maccioni & Anton Dignös & Demis Basso, 2022. "A Framework to Evaluate Areas of Interest for Sustainable Products and Designs," Sustainability, MDPI, vol. 14(13), pages 1-17, June.
    6. Suvrat Dhanorkar & Enno Siemsen, 2021. "How Nudges Lead to Improved Energy Efficiency in Manufacturing: Evidence from Archival Data and a Field Study," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3735-3757, October.
    7. Khandeparkar, Kapil & Motiani, Manoj & Sharma, Amalesh, 2021. "Thank you for not smoking – A multi-method investigation to understand the effect of anti-smoking warnings in television programs," Journal of Business Research, Elsevier, vol. 128(C), pages 462-472.
    8. Suvrat S. Dhanorkar & Enno Siemsen & Kevin W. Linderman, 2018. "Promoting Change from the Outside: Directing Managerial Attention in the Implementation of Environmental Improvements," Management Science, INFORMS, vol. 64(6), pages 2535-2556, June.
    9. Rodolphe Durand & Panayiotis (Panikos) Georgallis, 2018. "Differential Firm Commitment to Industries Supported by Social Movement Organizations," Organization Science, INFORMS, vol. 29(1), pages 154-171, February.
    10. Li, Qian & Huang, Zhuowei (Joy) & Christianson, Kiel, 2016. "Visual attention toward tourism photographs with text: An eye-tracking study," Tourism Management, Elsevier, vol. 54(C), pages 243-258.
    11. Datta, Subhadeep & Mukherjee, Sourjo, 2022. "In families we trust: Family firm branding and consumer’s reaction to product harm crisis," Journal of Business Research, Elsevier, vol. 151(C), pages 257-268.
    12. Zuschke, Nick, 2020. "The impact of task complexity and task motivation on in-store marketing effectiveness: An eye tracking analysis," Journal of Business Research, Elsevier, vol. 116(C), pages 337-350.
    13. Santa, Juana Castro & Drews, Stefan, 2023. "Heuristic processing of green advertising: Review and policy implications," Ecological Economics, Elsevier, vol. 206(C).
    14. Yoon, Hyungseok & Tashman, Peter & Benischke, Mirko H. & Doh, Jonathan & Kim, Namil, 2024. "Climate impact, institutional context, and national climate change adaptation IP protection rates," Journal of Business Venturing, Elsevier, vol. 39(1).
    15. Sun, Xiaochi & Foscht, Thomas & Eisingerich, Andreas B., 2021. "Does educating customers create positive word of mouth?," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    16. Li, Yaoqi & Liu, Biqiang & Xie, Lishan, 2022. "Celebrity endorsement in international destination marketing: Evidence from eye-tracking techniques and laboratory experiments," Journal of Business Research, Elsevier, vol. 150(C), pages 553-566.
    17. Yang, Shuai & Carlson, Jeffrey R. & Chen, Sixing, 2020. "How augmented reality affects advertising effectiveness: The mediating effects of curiosity and attention toward the ad," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    18. Shinkle, George A. & Hodgkinson, Gerard P. & Gary, Michael Shayne, 2021. "Government policy changes and organizational goal setting: Extensions to the behavioral theory of the firm," Journal of Business Research, Elsevier, vol. 129(C), pages 406-417.
    19. Behe, Bridget K. & Bae, Mikyeung & Huddleston, Patricia T. & Sage, Lynnell, 2015. "The effect of involvement on visual attention and product choice," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 10-21.
    20. Pieters, R. & Warlop, L., 1998. "Visual Attention During Brand Choice : The Impact of Time Pressure and Task Motivation," Other publications TiSEM 0d2ce004-d72e-40e8-9c01-2, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:joares:v:54:y:2016:i:1:p:113-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-8456 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.