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Performance Measurement and Management Systems: A Perspective from Complexity Theory
Stockholm Univ, Stockholm Business Sch, SE-10691 Stockholm, Sweden..
Gandhi Inst Technol & Management, GITAM Sch Int Business, Visakhapatnam 530045, Andhra Prades, India..
Univ Rovira & Virgili, Tarragona, Spain..
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial Management.ORCID iD: 0000-0003-0904-5822
2018 (English)In: International journal of management reviews (Print), ISSN 1460-8545, E-ISSN 1468-2370, Vol. 20, no 3, p. 731-754Article in journal (Refereed) Published
Abstract [en]

Complexity negatively impacts the process of continually improving performance management systems (PMSs). The extant PMS literature considers complexity to be a result of the external environment rather than a user response to that environment. However, this paper argues that organizations generally face internal complexity when adopting PMSs. Introducing PMSs into an organization can have varied effects in those organizations based on the complexity of an organization's associated members and its interactions. This study aims to understand the emergence of complexities while implementing and using PMSs in organizations. From the complexity theory perspective, four system properties (ontological, teleological, genetic and functional) are used to understand complexity in PMSs. The paper builds on a systematic literature review consisting of 76 papers and analyses them in the light of exploring sources of complexity when implementing and using PMSs. From the outset, complexity is understood to be a result of the conflict between existing organizational practices and mechanisms and the organizational controls associated with PMSs. The key findings abstracted six sources of complexity in this study: role, task and procedural types of complexity associated with the social dimension, and methodological, analytical and technological types of complexity associated with the technical dimension. The study findings contribute to the current discussion regarding why PMSs typically lag and are not responsive and resilient in emerging contexts. While understanding and exploring all organizational controls that moderate a PMS is useful, organizations should construct the necessary capabilities, depending on their context and adapt to the changes associated with PMSs.

Place, publisher, year, edition, pages
WILEY , 2018. Vol. 20, no 3, p. 731-754
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kth:diva-232404DOI: 10.1111/ijmr.12184ISI: 000437117200004Scopus ID: 2-s2.0-85049316333OAI: oai:DiVA.org:kth-232404DiVA, id: diva2:1235632
Funder
EU, European Research Council
Note

QC 20180726

Available from: 2018-07-26 Created: 2018-07-26 Last updated: 2019-08-20Bibliographically approved

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