Taxonomy of performance measurement systems

This study aims to provide an integrated view of performance measurement systems (PMS) by developing a taxonomy reflecting the interdependencies among various PMS aspects. This study aims to move the study of PMS from a cartesian form of contingency fit to a configuration form. More specifically, the following research question is investigated in this study: To what extent do similar patterns across various dimensions of PMS occur with regularity? Using a survey approach to collect data from a sample of manufacturing firms, this study aims to develop a taxonomy based on three aspects of the PMS process, namely the design (i.e., the mix of financial, customer, internal processes, innovation and learning measures), the use (i.e., monitoring, strategic decision-making, attention-focusing, legitimization), and the revision (i.e., the addition, deletion, and changes in performance indicators). Three patterns of relationships reflecting the role and importance of PMS within the organization emerge: (a) PMS as an outcomes surveillance mechanism, (b) PMS as a management support tool, and (c) PMS as an institutionalized organizational process. This study contributes to the management accounting literature by providing a different understanding of the various levels of integration of PMS within organizational routines.