The Influence of Performance Measurement on the Processual Dynamics of Strategic Change

Abstract

We draw on a five-year longitudinal dataset to investigate the influence of performance measurement in the processual dynamics of strategic change, and particularly in enacting effective strategic change. Our model examines the role of performance measurement in driving strategy-consistent operational changes and in ensuring that desired objectives of the strategic change process are achieved. We investigate these roles for performance measurement over time and empirically document lags between changes in strategic priorities, changes in operational processes and subsequent changes in firm performance. We find that performance measurement supports the implementation of strategic change by in..