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How performance measurement systems enable or hinder organizational ambidexterity
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Badu, Daniella Abena and Micheli, Pietro (2024) How performance measurement systems enable or hinder organizational ambidexterity. International Journal of Operations & Production Management . doi:10.1108/IJOPM-07-2023-0591 ISSN 0144-3577. (In Press)
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Official URL: http://doi.org/10.1108/IJOPM-07-2023-0591
Abstract
Purpose
This study aims to examine how different uses of performance measurement systems (PMS) enable or hinder organizational ambidexterity (OA), intended as the simultaneous pursuit of exploitation and exploration.
Design/methodology/approach
Following a qualitative research design, we gathered data through semi-structured interviews, observations and reviews of documents at four departments of an automotive firm.
Findings
We contribute to operations management research and practice by demonstrating how PMS, which are typically associated with exploitation, can also foster exploration and enable organizations to become ambidextrous. Specifically, we show how PMS can be structured and used in more agile ways and, in relation to innovation, we identify which PM practices should be introduced and with what effects and those that should be avoided. We also contribute to organization theory by highlighting how a single management tool can promote the achievement of both exploration and exploitation.
Practical implications
In investigating PMS uses and their effects, we identify several positive practices. For example, we show how managers can use PMS more effectively and how targets could be deployed to stimulate creativity and innovation. We also emphasize the need for managers to opt more often for team incentives rather than individual ones to encourage the collaboration needed for OA.
Originality/value
We provide in-depth insight into how PM tools affect an organization’s ability to pursue exploitation and exploration, thus contributing to research in operations, innovation and organization theory.
Item Type: | Journal Article | ||||||||
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Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
Journal or Publication Title: | International Journal of Operations & Production Management | ||||||||
Publisher: | Emerald Group Publishing Ltd. | ||||||||
ISSN: | 0144-3577 | ||||||||
Official Date: | 2024 | ||||||||
Dates: |
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DOI: | 10.1108/IJOPM-07-2023-0591 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | In Press | ||||||||
Re-use Statement: | Copyright © 2024, Emerald Publishing Limited. This AAM is provided for your own personal use only. It may not be used for resale, reprinting, systematic distribution, emailing, or for any other commercial purpose without the permission of the publisher. | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 1 May 2024 | ||||||||
Date of first compliant Open Access: | 1 May 2024 |
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