Enabling performance measurement system and job performance: Focus on psychological mechanism
List of Authors
  • Maiko Kodama

Keyword
  • Enabling performance measurement system, Psychological empowerment, Job performance, Japanese company

Abstract
  • This study aimed to provide evidence of the impact of enabling perception of performance measurement systems (PMS) on psychological empowerment and job performance. We surveyed 500 middle managers in Japan to test our hypotheses. The results of the analysis supported our hypotheses. Specifically, it was evident that an enabling PMS positively influenced managers' job performance through its impact on four dimensions of psychological empowerment (meaning, competence, self-determination, and impact).

Reference
  • 1. Adler, P. S., & Borys, B. (1996). Two types of bureaucracy: Enabling and coercive. Administrative science quarterly, 61-89.

    2. Ahrens, T., & Chapman, C. S. (2004). Accounting for flexibility and efficiency: A field study of management control systems in a restaurant chain. Contemporary accounting research, 21(2), 271-301.

    3. Burkert, M., Fischer, F. M., & Schäffer, U. (2011). Application of the controllability principle and managerial performance: The role of role perceptions. Management accounting research, 22(3), 143-159.

    4. Chapman, C. S., & Kihn, L. A. (2009). Information system integration, enabling control and performance. Accounting, organizations and society, 34(2), 151-169.

    5. Chin, W. W. (1998). “Commentary: Issues and Opinion on Structural Equation Modeling.” The Mississippi Quarterly, 22(1), vii – xvi.

    6. Drake, A. R., Wong, J., & Salter, S. B. (2007). Empowerment, motivation, and performance: Examining the impact of feedback and incentives on nonmanagement employees. Behavioral research in accounting, 19(1), 71-89.

    7. Fornell, C. & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error, Journal of Marketing Research, 18(1), 39–50.

    8. Franco-Santos, M., Lucianetti, L., & Bourne, M. (2012). Contemporary performance measurement systems: A review of their consequences and a framework for research. Management accounting research, 23(2), 79-119.

    9. Fuller, C. M., Simmering, M. J., Atinc, G., Atinc, Y., & Babin, B. J. (2016). Common methods variance detection in business research. Journal of business research, 69(8), 3192-3198.

    10. Hair, J. F., Ringle, C. M. & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet, Journal of Marketing Theory and Practice, 19(2), 139–52.

    11. Hall, M. (2008). The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance. Accounting, organizations and society, 33(2-3), 141-163.

    12. Hartmann, F. G. (2000). The appropriateness of RAPM: toward the further development of theory. Accounting, Organizations and Society, 25(4-5), 451-482.

    13. Hartmann, F. G., & Maas, V. S. (2011). The effects of uncertainty on the roles of controllers and budgets: An exploratory study. Accounting and Business Research, 41(5), 439-458.

    14. Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The Use of Partial Least Squares Path Modeling in International Marketing. In New Challenges to International Marketing, 20, 277–319. Emerald Group Publishing Limited.

    15. Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204.

    16. Ittner, C. D., Larcker, D. F., and Randall, T. (2003). Performance implications of strategic performance measurement in financial services firms. Accounting, organizations and society, 28, 7-8, 715-741.

    17. Larrue, R., Fellah, S., Van der Hauwaert, C., Hennino, M. F., Perrais, M., Lionet, A., ... & Cauffiez, C. (2022). The Versatile role of MIR-21 in renal homeostasis and diseases. Cells, 11(21), 3525.

    18. Mahama, H., & Cheng, M. M. (2013). The effect of managers' enabling perceptions on costing system use, psychological empowerment, and task performance. Behavioral Research in Accounting, 25(1), 89-114.

    19. Mahoney, T. A., Jerdee, T. H., & Carroll, S. J. (1965). The job (s) of management. Industrial Relations: A Journal of Economy and Society, 4(2), 97-110.

    20. Mundy, J. (2010). Creating dynamic tensions through a balanced use of management control systems. Accounting, Organizations and society, 35(5), 499-523.

    21. Nunnally, J. C., & Bernstein, I. H. (1978). “Psychometric Testing.”

    22. Podsakoff, P. M., & Organ, D. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of management, 12(4), 531-544.

    23. Shields, M. D., Deng, F. J., & Kato, Y. (2000). The design and effects of control systems: tests of direct-and indirect-effects models. Accounting, Organizations and Society, 25(2), 185-202.

    24. Sholihin, M., & Pike, R. (2009). Fairness in performance evaluation and its behavioural consequences. Accounting and Business Research, 39(4), 397-413.

    25. Shrout, P. E., & Bolger, N. (2002). Mediation in experimental and nonexperimental studies: new procedures and recommendations, Psychological Methods, 7(4), 412-422.

    26. Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation, Academy of Management Journal, 38, 5, 1442-1465.

    27. Spreitzer, G. M., Kizilos, M. A., and Nason, S. W. (1997). A dimensional analysis of the relationship between psychological empowerment and effectiveness satisfaction, and strain, Journal of Management, 23, 5, 679-704.

    28. Thomas, K. W., and Velthouse, B. A. (1990). Cognitive elements of empowerment: An “Interpretive” model of intrinsic task motivation, Academy of management review, 15, 4, 666-681.

    29. Van der Hauwaert, E., Hoozée, S., Maussen, S., & Bruggeman, W. (2022). The impact of enabling performance measurement on managers’ autonomous work motivation and performance. Management Accounting Research, 55, 100780.

    30. Wouters, M., & Wilderom, C. (2008). Developing performance-measurement systems as enabling formalization: A longitudinal field study of a logistics department. Accounting, Organizations and Society, 33(4-5), 488-516.