Linking decision-control and decision-management uses of performance measurement systems

Abstract

Purpose—For both parties of a distribution channel, this paper analyzes (a) to what extent each party perceives the counterpart’s use of performance measurement systems, and (b) how this perception affects the perceiver’s own use of these systems, for either decision control or decision management. Design/methodology/approach—The paper proposes a conceptual model tested at different levels using Structural Equations Models. A case study uses survey data from 107 distributors and 91 manufacturer managers. Findings—Performance measurement systems allow evaluation by the manufacturer, but also daily management by distributors; both uses can be simultaneous and complementary. Results show that (1) each party’s perception of the counterpart’s use contributes to its own use, although (2) real uses do not significantly influence these perceptions. Research limitations/implications—The results must be interpreted with caution because the sample is small. This study calls for further data collection in real situations with larger samples, and for eliminating the influence of the distribution channel type. Further work is needed to analyze other constructs driving the relationship between real use and perception. Originality/value—This study’s originality comes from the conceptual model, dataset, and levels of analysis. Decoupling real use and perception, it challenges the prevailing assumption that managers accurately perceive counterpart managers’ use of performance measurement systems. Analyzing at both group and individual levels, it extends the more usual dyadic studies by recognizing that any given manager’s perception may be almost wholly formed by his/her interaction with a group of individuals.