Decentralization, Interdependence and Performance Measurement System Design

Sequences and Priorities

M. Abernethy, J.F.M.G. Bouwens, L.A.G.M. van Lent

Research output: Working paperDiscussion paperOther research output

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Abstract

We investigate the determinants of decentralization and performance measurement choices in multidivisional firms.We extend the research on the economics of organizational design choices by examining the impact of two important determinants of those choices, namely, subunit interdependencies and knowledge transfer costs.We test our predictions with a simultaneous equation model that captures the endogenous choices relating to the level of decentralization and the use of alternative subunit performance measures using data collected from 78 business units.Our findings are generally consistent with our predictions.
Original languageEnglish
Place of PublicationTilburg
PublisherAccounting
Number of pages39
Volume2001-28
Publication statusPublished - 2001

Publication series

NameCentER Discussion Paper
Volume2001-28

Fingerprint

Interdependence
Prediction
System design
Performance measurement system
Decentralization
Knowledge transfer
Simultaneous equations model
Performance measurement
Organizational design
Economics
Performance measures
Interdependencies
Costs

Keywords

  • performance measurement
  • interdependency
  • knowledge
  • decentralization
  • organizational structure

Cite this

Abernethy, M., Bouwens, J. F. M. G., & van Lent, L. A. G. M. (2001). Decentralization, Interdependence and Performance Measurement System Design: Sequences and Priorities. (CentER Discussion Paper; Vol. 2001-28). Tilburg: Accounting.
Abernethy, M. ; Bouwens, J.F.M.G. ; van Lent, L.A.G.M. / Decentralization, Interdependence and Performance Measurement System Design : Sequences and Priorities. Tilburg : Accounting, 2001. (CentER Discussion Paper).
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Abernethy, M, Bouwens, JFMG & van Lent, LAGM 2001 'Decentralization, Interdependence and Performance Measurement System Design: Sequences and Priorities' CentER Discussion Paper, vol. 2001-28, Accounting, Tilburg.

Decentralization, Interdependence and Performance Measurement System Design : Sequences and Priorities. / Abernethy, M.; Bouwens, J.F.M.G.; van Lent, L.A.G.M.

Tilburg : Accounting, 2001. (CentER Discussion Paper; Vol. 2001-28).

Research output: Working paperDiscussion paperOther research output

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KW - organizational structure

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Abernethy M, Bouwens JFMG, van Lent LAGM. Decentralization, Interdependence and Performance Measurement System Design: Sequences and Priorities. Tilburg: Accounting. 2001. (CentER Discussion Paper).