How different are performance management systems? Empirical typology of performance management systems
The purpose of the research is to extract an empirical typology presenting the diverse types of PMSs. For creating empirical typology, a Two-Step cluster analysis was applied. The types of PMSs are characterized by the variables extracted from the chain model found in the literature. We discovered...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2023-06-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vilniustech.lt/index.php/JBEM/article/view/19248 |
| _version_ | 1797799421643063296 |
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| author | Tarmo Kadak Erkki K. Laitinen |
| author_facet | Tarmo Kadak Erkki K. Laitinen |
| author_sort | Tarmo Kadak |
| collection | DOAJ |
| description |
The purpose of the research is to extract an empirical typology presenting the diverse types of PMSs. For creating empirical typology, a Two-Step cluster analysis was applied. The types of PMSs are characterized by the variables extracted from the chain model found in the literature. We discovered two relevant dimensions specifying the PMSs: the importance of strategy for the firms and the multitude of organizational levels. Based on these, we extracted four clusters (types) of PMS along the dimensions of strategy focusing and organizational level. The findings show that the most advanced PMSs are found in the Strategy-focused Multi-level cluster, before the Strategyfocused One-level cluster. We also linked the dimensions within the four aspects of PMSs: strategic, alignment and process, usage, and information aspects. We found that the expected success of PMSs is positively related to the strategy-focus and multiplicity of levels. These findings broaden the common typologies of PMS and add the intrinsic features of the firm to the types of PMS reflecting strategy orientation and the multitude of hierarchy levels of the firm.
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| first_indexed | 2024-03-13T04:18:38Z |
| format | Article |
| id | doaj.art-4d654d14f0434197a7ba32fb83499224 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-03-13T04:18:38Z |
| publishDate | 2023-06-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-4d654d14f0434197a7ba32fb834992242023-06-20T15:18:48ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332023-06-0124210.3846/jbem.2023.19248How different are performance management systems? Empirical typology of performance management systemsTarmo Kadak0Erkki K. Laitinen1Centre of Accounting, Department of Business Administration, School of Business and Governance, Tallinn University of Technology, Ehitajate tee 5, 19086, Tallinn, EstoniaACA Research Group, School of Accounting and Finance, University of Vaasa, P.O. Box 700, 65100, Vaasa, Finland The purpose of the research is to extract an empirical typology presenting the diverse types of PMSs. For creating empirical typology, a Two-Step cluster analysis was applied. The types of PMSs are characterized by the variables extracted from the chain model found in the literature. We discovered two relevant dimensions specifying the PMSs: the importance of strategy for the firms and the multitude of organizational levels. Based on these, we extracted four clusters (types) of PMS along the dimensions of strategy focusing and organizational level. The findings show that the most advanced PMSs are found in the Strategy-focused Multi-level cluster, before the Strategyfocused One-level cluster. We also linked the dimensions within the four aspects of PMSs: strategic, alignment and process, usage, and information aspects. We found that the expected success of PMSs is positively related to the strategy-focus and multiplicity of levels. These findings broaden the common typologies of PMS and add the intrinsic features of the firm to the types of PMS reflecting strategy orientation and the multitude of hierarchy levels of the firm. https://journals.vilniustech.lt/index.php/JBEM/article/view/19248Performance Management Systems (PMS)cluster analysiskey success factorsclusters of PMShierarchy levelsstrategy focus |
| spellingShingle | Tarmo Kadak Erkki K. Laitinen How different are performance management systems? Empirical typology of performance management systems Journal of Business Economics and Management Performance Management Systems (PMS) cluster analysis key success factors clusters of PMS hierarchy levels strategy focus |
| title | How different are performance management systems? Empirical typology of performance management systems |
| title_full | How different are performance management systems? Empirical typology of performance management systems |
| title_fullStr | How different are performance management systems? Empirical typology of performance management systems |
| title_full_unstemmed | How different are performance management systems? Empirical typology of performance management systems |
| title_short | How different are performance management systems? Empirical typology of performance management systems |
| title_sort | how different are performance management systems empirical typology of performance management systems |
| topic | Performance Management Systems (PMS) cluster analysis key success factors clusters of PMS hierarchy levels strategy focus |
| url | https://journals.vilniustech.lt/index.php/JBEM/article/view/19248 |
| work_keys_str_mv | AT tarmokadak howdifferentareperformancemanagementsystemsempiricaltypologyofperformancemanagementsystems AT erkkiklaitinen howdifferentareperformancemanagementsystemsempiricaltypologyofperformancemanagementsystems |