Title: Explaining the scope of information in performance measurement: managerial roles and contextual variables

Authors: Erkki K. Laitinen

Addresses: Department of Accounting and Finance, University of Vaasa, P.O. Box 700, 65101 Vaasa, Finland

Abstract: This study analyses the influence of contextual variables and managerial roles on the scope of job-relevant information in performance measurement. Five hypotheses are drawn for the effects on potential (intended) scope, real (existing) scope and difference (gap) between these scopes. Empirical results are based on survey data from 76 Finnish managers (CEOs) of manufacturing firms in 2008. The rate of survey response was 26.5%. Typology of managerial job is extracted from the ten roles of Mintzberg (1973) by the factor analysis. The scope of information is extracted from a set of 27 information items in the IPMS framework presented by Laitinen (2002). The influence on the scope of information is analysed by regression analysis. The evidence shows that the managerial role is strongly associated with the potential scope of information. However, contextual variables (size, strategy, industry, competition, and PEU) are important determinants of the gap. Thus, in designing management information systems, more attention should be paid to managerial roles and to release the restrictions set by context.

Keywords: information scope; managerial jobs; performance measurement; survey; Finnish firms; Mintzberg types; Finland; manufacturing industry; managerial role; management information systems: MIS.

DOI: 10.1504/IJAAPE.2011.042773

International Journal of Accounting, Auditing and Performance Evaluation, 2011 Vol.7 No.4, pp.303 - 336

Published online: 13 Mar 2015 *

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