Over the last two decades we have seen some remarkable changes in managerial control systems literature. From the traditional attention to the financial measures and budgetary control, management control systems (MCS) has shifted to a strategic approach directed towards the design and measurement of key performance indicators and superordinate value-based metrics (Ittner, Larcker, 2001). Recently, some empirical studies verified the positive association between the use of Value Based Management systems (VBM) and firm performance (Lueg, Schäffer, 2010). VBM systems is a management control systems that support the implementation of corporate strategy toward the objective of creating shareholder value. By means of a superordinate value-based metrics, VBM systems allow to align strategy, firm processes, decision making, performance measurement, and the overall view of the organization with the main purpose of value creation (Malmi, Ikäheimo, 2003; Burket, Lueg, 2013). The positive effects of VBM on firm performance are based on several factors (Firk, et al., 2016). First, by aligning manager and shareholder interests, VBM systems should decrease agency costs. Second, VBM systems facilitate the sharing of strategic goals to all level of organizations. Third, they develop and reinforce value-creating strategies. With the aim to solve the inconsistent evidence of the VBM performance effect, scholars are increasing their attention to the strategic and external factors that may magnify or mitigate the impact of VBM on firm performance (Brück, et al., 2018; Knauer, et al., 2018). Following this stream of research, our exploratory study tries to understand if strategic ambidexterity and environmental turbulence enhance the relation between VBM systems and firm performance. We empirically analyse our research questions on a sample of indexed firms from FTSE Italian index in the period between 2008-2018 by using quantitative method approach. The preliminary analysis of research data confirms our expectations about the existence of a positive association between the adoption of VBM systems and firm performance. Moreover, the same preliminary data suggest that strategic ambidexterity and environmental turbulence amplify the positive effect of VBM systems on firm performance.

VBM Systems and Firm Performance. The Moderating Effect of Strategic Ambidexterity and Environmental Turbulence

CORAZZA, GIULIO;Filippo Zanin;Eugenio Comuzzi
2019-01-01

Abstract

Over the last two decades we have seen some remarkable changes in managerial control systems literature. From the traditional attention to the financial measures and budgetary control, management control systems (MCS) has shifted to a strategic approach directed towards the design and measurement of key performance indicators and superordinate value-based metrics (Ittner, Larcker, 2001). Recently, some empirical studies verified the positive association between the use of Value Based Management systems (VBM) and firm performance (Lueg, Schäffer, 2010). VBM systems is a management control systems that support the implementation of corporate strategy toward the objective of creating shareholder value. By means of a superordinate value-based metrics, VBM systems allow to align strategy, firm processes, decision making, performance measurement, and the overall view of the organization with the main purpose of value creation (Malmi, Ikäheimo, 2003; Burket, Lueg, 2013). The positive effects of VBM on firm performance are based on several factors (Firk, et al., 2016). First, by aligning manager and shareholder interests, VBM systems should decrease agency costs. Second, VBM systems facilitate the sharing of strategic goals to all level of organizations. Third, they develop and reinforce value-creating strategies. With the aim to solve the inconsistent evidence of the VBM performance effect, scholars are increasing their attention to the strategic and external factors that may magnify or mitigate the impact of VBM on firm performance (Brück, et al., 2018; Knauer, et al., 2018). Following this stream of research, our exploratory study tries to understand if strategic ambidexterity and environmental turbulence enhance the relation between VBM systems and firm performance. We empirically analyse our research questions on a sample of indexed firms from FTSE Italian index in the period between 2008-2018 by using quantitative method approach. The preliminary analysis of research data confirms our expectations about the existence of a positive association between the adoption of VBM systems and firm performance. Moreover, the same preliminary data suggest that strategic ambidexterity and environmental turbulence amplify the positive effect of VBM systems on firm performance.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11390/1168342
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