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Understanding performance measurement dynamism: a case study

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  • Tuomas Korhonen
  • Teemu Laine
  • Petri Suomala

Abstract

This paper elaborates on the notion of performance measurement (PM) dynamism. The paper’s argument is based on a literature review and an interventionist case study. The analysis of the structure of PM dynamism is deepened by using New Institutional Sociology theory as a tool. PM dynamism was found to occur at four different levels: in setting the role of performance measures for decision making in general, in the use of measures, in the selection of measures and within the components of single measures. PM dynamism allows, for instance, measures used only for specific and topical purposes (ad hoc), in contrast to the views presented in the extant literature, which reject measures that are not institutionalized. The use of up-to-date measures, a major implication of understanding PM dynamism more thoroughly, could lead to more efficient strategy implementation and enactment at different levels. The originality of the article consists of identifying the rationale and the levels of PM dynamism and of the consideration that the use of ad hoc measures may have a positive impact on managing performance. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Tuomas Korhonen & Teemu Laine & Petri Suomala, 2013. "Understanding performance measurement dynamism: a case study," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 35-58, February.
    • Handle: RePEc:kap:jmgtgv:v:17:y:2013:i:1:p:35-58
    DOI: 10.1007/s10997-012-9217-6
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    References listed on IDEAS

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    Cited by:

    1. Gutierrez, Debora M. & Scavarda, Luiz F. & Fiorencio, Luiza & Martins, Roberto A., 2015. "Evolution of the performance measurement system in the Logistics Department of a broadcasting company: An action research," International Journal of Production Economics, Elsevier, vol. 160(C), pages 1-12.
    2. Emmi Tervala & Teemu Laine & Tuomas Korhonen & Petri Suomala, 2017. "The role of financial control in new product development: empirical insights into project managers’ experiences," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(1), pages 81-106, February.
    3. Tuomas Korhonen & Virpi Sillanpää & Aki Jääskeläinen, 2023. "Anchor practices that guide horizontal performance measurement: an interventionist case study of the financial aspect of new technology implementation in healthcare," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(3), pages 787-816, September.

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