Doctoral thesis: Performance measurement systems of importance on corporate profitability

Doctoral thesis: Performance measurement systems of importance on corporate profitability

It is widely acknowledged that strategic performance measurement systems play an important role for businesses. The design of performance measurement systems can have an impact on corporate profitability, giving businesses a competitive advantage.

In her doctoral thesis “The Contextual Factors that Enable the BSC to Create Profitability,” Eva-Maria Ström explores one of the best known formats for performance measurement systems – the balanced scorecard (BSC).

“In my study I have developed a new model aimed at understanding how BSC can be used to achieve the expected performance improvements from the balanced scorecard,” Eva-Maria Ström explains.   

She shows that the chosen strategic focus and management’s active involvement affect the design of performance measurement systems. Her study shows that businesses introduce measurement systems to achieve competitive advantages in the market, and there is evidence that companies follow their competitors in the market, introducing measurement systems because others are doing so.

“Management’s reasons have an impact on the design of the performance measurement system and companies that introduce such systems outperform their competitors, both financially and strategically,” Eva-Maria Ström says.   

According to Eva-Maria Ström, the role played by management has a crucial impact when BSC is introduced, in terms of management’s active involvement in the implementation as well as the actual decision to introduce the measurement system.

Eva-Maria Ström will defend her doctoral thesis on the subject on Saturday 24 November, at 2 p.m. The research field is accounting.

More information:

Eva-Maria Ström
eva.strom@hanken.fi