Examining Performance Measurement from an Integrated Perspective

Abstract

This paper introduces system comprehensiveness, a variable reflecting the diversity of performance measurement (PM) categories captured in a PM system. Using this variable, we synthesize the information systems and management accounting literatures into an integrated model of PM systems. Based on survey responses from 646 experienced financial managers, our integrated model results provide evidence that system comprehensiveness partially explains how participation leads to job-relevant information. Furthermore, our findings indicate that system comprehensiveness is associated with employee outcomes through the mediating effect of jobrelevant information. These results suggest that organizations benefit from PM systems that incorporate a broader set of measures. Also, by linking the two research streams, this paper provides a richer understanding of how participation improves employee outcomes. Along this line, we identify a variety of future research opportunities that, if approached from a cross-disciplinary perspective, could further enhance our understanding of PM systems.