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The use of multi-perspective performance reporting systems (MPRS), such as the balanced scorecard (BSC), has become widespread. The BSC reports performance about four perspectives (learning and growth, internal business processes, customer, and financials). Although these systems are important (Libby et al., 2004), research in the area has only just scratched the surface, hence the motivation for this study. Continuous improvement systems (CIS) are another management accounting innovation. These systems constantly look for ways to improve performance and, if implemented, will be used in conjunction with performance reporting systems. This research studies the effectiveness of CIS in organisations using MPRS. The objectives of the research are to study organisations using MPRS and: (1) investigate the dimensions of multi-perspective performance reporting and organisational performance in that context, and (2) explore the relationship between CIS and organisational performance. We found (1) 10 dimensions of performance reporting, 7 multi-item dimensions and 4 single-item measures of performance, and (2) that CIS were positively associated with organisational performance.
This document has been peer reviewed.