Badu, Daniella Abena (2020) How the uses of performance measurement systems constrain or enable organizational ambidexterity. PhD thesis, University of Warwick.

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Abstract

Organizational ambidexterity (OA) has been associated with increased organizational performance and growth. However, it can be difficult to achieve, as organizations require systems and practices that can help them exploit their existing resources while, at the same time, explore new opportunities. Traditionally, Performance Measurement System (PMS) have been known to enable exploitative activities such as strategy implementation and organizational alignment. However, its role in facilitating or restricting exploration remains unclear.

Taking a realist perspective, this study employs a naturalistic case study to investigate the interplay between OA and the uses of PMS. Specifically, practices used in four departments of an automotive firm based in the UK were examined. Semi-structured interviews, documentary analysis and observations were used to gather data.

This research reveals that the uses of PMS can constrain OA, if deployed in particular ways. For example, if they are used to focus attention primarily on output and financial measures, if they reinforce old practices and processes, and if they are strongly linked to individual rewards or sanctions. However, this study also shows that the combined diagnostic and interactive uses of PMS can facilitate OA in four main ways: (1) performance information can be used to highlight areas that require both exploitation and exploration; (2) the collaborative development of performance objectives and targets helps align individual objectives to the organization’s and discussions regarding targets can lead to activities that support both exploitation and exploration; (3) employee and project review sessions can also create fora to simultaneously discuss aspects related to exploitation and exploration; (4) Using lessons learnt from previous experiences can inform exploitative and exploratory initiatives. Interestingly, the data also reveals that the diagnostic use of PMS is critical for exploration because it can focus attention on creativity and innovation, align exploratory initiatives to the organization’s vision and mission and provide a framework for new product development

Item Type:	Thesis (PhD)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Library of Congress Subject Headings (LCSH):	Organizational change -- Management, Performance -- Measurement, Strategic planning, Business planning, Organizational effectiveness -- Measurement, Employees -- Rating of
Official Date:	November 2020
Dates:	Date Event November 2020 UNSPECIFIED
Institution:	University of Warwick
Theses Department:	Warwick Business School
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Micheli, Pietro ; Beer, Haley
Extent:	xii, 212 leaves : illustrations
Language:	eng

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