The use of performance information in strategic decision making in public organizations

Abstract

Purpose – The purpose of this paper is to investigate how the importance of different components of strategic performance measurement systems (SPMS) and their deployment influence the use of performance information from the SPMS in making strategic decisions. Design/methodology/approach – Data were collected through a survey of 143 managers of Canadian public organizations. Findings – The findings indicate that two SPMS components, namely, the importance of non-financial performance measures and the use of operational efficiency measures, have significant positive associations with performance information use for strategy implementation and strategy assessment decisions. The extent to which SPMS models were used is found to be positively associated with performance information use for strategy implementation, but not for strategy assessment, decisions. Furthermore, the relationships between SPMS variables and strategic decision making are moderated by information systems/data limitations and management’s commitment to attaining strategic goals. Managerial skills acquired through training or experience with SPMS also contribute positively to such relationships. Research limitations/implications – The results are affected by limitations associated with the survey method used. Practical implications – The findings could be useful for supporting public policy, strategic decision making, public service improvement, operational efficiency, and effectiveness. Originality/value – The study contributes to public management and performance measurement literature by investigating multiple determinants of performance information use in a cross-section of Canadian public organizations.