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Performance measures, consensus on strategy implementation, and performance: Evidence from the operational-level of organizations

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  • Ho, Joanna L.Y.
  • Wu, Anne
  • Wu, Steve Y.C.

Abstract

In this article, we examine how consensus between operational-level managers and employees on strategy implementation affects the effectiveness of performance measures and employee performance. We use field-based surveys and proprietary archival data from a Taiwanese financial services company to answer our research questions. Consistent with the predictions of person–organization fit theory, we find that consensus on the implementation of the customer-oriented strategy is positively associated with frontline employees’ performance. Our results also indicate that the incentive effect of using performance measures in performance evaluation and promotion is stronger for employees with a higher level of consensus. Our findings suggest that consensus is critical to the success of an organization’s strategy implementation and the effectiveness of performance measures.

Suggested Citation

  • Ho, Joanna L.Y. & Wu, Anne & Wu, Steve Y.C., 2014. "Performance measures, consensus on strategy implementation, and performance: Evidence from the operational-level of organizations," Accounting, Organizations and Society, Elsevier, vol. 39(1), pages 38-58.
    • Handle: RePEc:eee:aosoci:v:39:y:2014:i:1:p:38-58
    DOI: 10.1016/j.aos.2013.11.003
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    9. Kiehne Jan & Ceausu Ioana & Arp Ann-Katrin & Schüler Timm, 2017. "Middle management’s role in strategy implementation projects: a behavioral analysis," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 539-549, July.
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    14. Fallahnejad Ali & Nazari Reza & Fard Mehdi Moradzadeh, 2023. "Analysis of the Relationship Between the Development of Performance Criteria and Job Performance of Employees with Respect to the Mediating Role of Employee Participation," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(2), pages 1-26, June.
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