IJOPM-10-2016-0632.pdf (525.28 kB)
A decision theory perspective on complexity in performance measurement and management
journal contribution
posted on 2023-06-09, 12:13 authored by Anthony AlexanderAnthony Alexander, Maneesh Kumar, Helen WalkerPurpose – The purpose of this paper is to apply the aspects of decision theory to performance measurement and management (PMM), thereby enabling the theoretical elaboration of volatility, uncertainty, complexity and ambiguity in the business environment, which are identified as the barriers to effective PMM. Design/methodology/approach – A review of decision theory and PMM literature establishes the Cynefin framework as the basis for extending the performance alignment matrix. Case research with seven companies explores the relationship between two concepts underexamined in the performance alignment matrix – internal dominant logic (DL) as the attribute of organisational culture affecting decision making, and the external environment – in line with the concept of alignment or fit in PMM. A focus area is PMM related to sustainable operations and supply chain management. Findings – Alignment between DL, external environment and PMM is found, as are instances of misalignment. The Cynefin framework offers a deeper theoretical explanation about the nature of this alignment. Other findings consider the nature of organisational ownership on DL. Research limitations/implications – The cases are exploratory not exhaustive, and limited in number. Organisations showing contested logic were excluded. Practical implications – Some organisations have cultures of predictability and control; others have cultures that recognise their external environment as fundamentally unpredictable, and hence there is a need for responsive, decentralised PMM. Some have sought to change their culture and PMM. Being attentive to how cultural logic affects decision making can help reduce the misalignment in PMM. Originality/value – A novel contribution is made by applying decision theory to PMM, extending the theoretical depth of the subject.
History
Publication status
- Published
File Version
- Published version
Journal
International Journal of Operations and Production ManagementISSN
0144-3577Publisher
EmeraldExternal DOI
Issue
11Volume
38Page range
2214-2244Department affiliated with
- Management Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2018-02-19First Open Access (FOA) Date
2018-02-28First Compliant Deposit (FCD) Date
2018-02-18Usage metrics
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