http://repub.eur.nl/res/aut/13290/ List of Publications en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/31780/ 2012-03-02T00:00:00Z We conduct an explorative study to investigate the effect of subjectivity in performance evaluation practices on managerial motivation in public sector organisations. Increased subjectivity can enhance motivation if supervisors are able to provide better informational feedback. However, subjectivity is likely to reduce motivation if it reduces perceived mission clarity or negatively affects relations between supervisors and subordinates. Our analysis is based on a survey among 94 public sector managers in the Netherlands. We predict and find that subjectivity in performance evaluation practices reduces perceived mission clarity, which in turn decreases motivation. We also find that subjectivity negatively affects subordinate managers’ trust in their supervisor, which also reduces motivation. Jointly, these results indicate that the negative effects of subjectivity in performance evaluation practices outweigh its potential positive consequences, suggesting that New Public Management's focus on more objective performance measures can indeed be beneficial. By itself, however, this does not automatically imply that more objective systems in general are optimal in all public sector organisations as such systems may have dysfunctional side effects such as distortion of performance measures, gaming or manipulation. In addition, we find that the effects of subjectivity are moderated by organisational characteristics. http://repub.eur.nl/res/pub/31239/ 2011-08-01T00:00:00Z Purpose: The purpose of this research project is to validate the claim that recent developments in the public sector have increased the demand for and use of cost management information in public sector organizations. Design/methodology/approach: The approach taken is a survey of financial managers in public sector organizations in The Netherlands. Findings: The findings indicate that the design and use of cost management systems differs across branches. In addition, the results suggest that information from cost management systems is used to legitimate the organization's activities to external stakeholders rather than to manage public sector organizations. Finally, cost management information is used mostly by financial managers yet hardly used by political managers. The results defy claims that cost management information has become important in managing public sector organizations. Research limitations/implications: All limitations of survey research apply. The survey is based on a non-random sample of public sector organizations in The Netherlands; findings may not be transferable to other countries. Practical implications: Legal and regulatory requirements relating to the use of cost management information may not have their intended effects. Originality/value: The paper responds to previous calls in literature to use quantitative research methods to generalize findings from previous case studies. Also, the paper empirically tests the use of cost management information in The Netherlands, a country with a Nordic style of public management. http://repub.eur.nl/res/pub/26593/ 2011-07-01T00:00:00Z Currently, companies spend a great deal of effort on Corporate Social Responsibility (CSR) disclosures. CSR disclosure relates to the provision of information on companies' environmental and social performance. From an economic perspective, companies might disclose this information to avoid or decrease potential political costs. We construct a CSR disclosure index based on the Global Reporting Initiative (GRI) guidelines. Using content analysis, we analyze 130 listed German companies' CSR disclosures (470 firm-year observations) to investigate the determinants of these voluntary disclosure activities. Our results show that, consistent with the political cost theory, German companies' disclosures of all CSR issues are affected by their visibility, shareholder structure, and relationship with their US stakeholders. In addition, higher profitability is associated with more environmental disclosures. Finally, size and industry membership affect the amount of CSR disclosure. http://repub.eur.nl/res/pub/21632/ 2010-01-01T00:00:00Z This study tests the hypothesis that business unit strategy and business unit structure affect change in a business unit’s Management Accounting & Control System (MACS). Business units are parts of a larger ‘whole’ organization, such as departments, teams, strategic groups or divisions. Change in MACS has been assessed by asking managers to estimate the number of changes that has taken place in their business unit’s MACS over a two-year time period. Using data from a survey amongst 61 business unit managers in the Netherlands, the study suggests that the costing & transfer pricing and reward system are relatively ‘resistant to change’. The results also indicate that the administrative capacity of a business unit is the main driver of change in MACS. Finally, business unit strategy and business unit structure affect change in specific components of MACS at the business unit level, apparently depending on whether the change in MACS facilitates or influences managerial decisions. http://repub.eur.nl/res/pub/22956/ 2010-01-01T00:00:00Z We investigate the association between brand-equity measures and business-unit financial performance. Brand-equity measures may complement historic accounting information in explaining business-unit financial performance. Capitalizing on a unique data set, we find an association between some (yet not all) brand-equity measures and contemporaneous as well as future business-unit financial performance. Our results provide important insights for both managers and designers of performance-measurement systems. http://repub.eur.nl/res/pub/18281/ 2009-04-01T00:00:00Z The aim of this study is to investigate whether the strategic priorities of an organization are associated with the use and effectiveness of specific performance measures. The results of a survey of Dutch firms indicate that specific strategic priorities (i.e., the importance of market/customer orientation, innovation and personnel development) tend to be associated with the use of non-financial performance measures. In addition, institutional factors appear to affect the use of specific performance measures. However, we find no support for the claim that aligning the performance measurement system to the strategic priorities of the firm positively affects performance. http://repub.eur.nl/res/pub/21645/ 2008-03-31T00:00:00Z Abstract Purpose – The aim of this study is to investigate whether performance management practices affect performance in public sector organizations. Design/methodology/approach – Theoretically, the research project is based on economic as well as behavioral theories. The study distinguishes amongst quantitative performance (efficiency, quantities produced) and qualitative performance (accuracy, quality, innovation and employee morale) and uses survey data from 93 public sector organizations in the Netherlands. Findings – The research shows that the definition of clear and measurable goals is positively associated with quantity performance as well as quality performance. In addition, the use of incentives is positively associated with quantity performance yet not related to quality performance. Finally, the effects of performance management practices in public sector organizations are affected by institutional factors. The results suggest that the behavioral effects of performance management practices are as important as the economic effects in public sector organizations. Research limitations/implications – All limitations of survey research apply. The survey is based on public sector organizations in The Netherlands; findings may not be transferable to other countries. Practical implications – The joint introduction of performance management practices may provide an opportunity to increase quantity performance yet may have no impact on quality performance. Originality/value – The paper responds to previous calls in the literature to use quantitative research methods to generalize findings from previous case studies. Also, the paper empirically tests the impact of performance management practices on performance, an area that has attracted scarce research attention http://repub.eur.nl/res/pub/21886/ 2006-03-01T00:00:00Z This study examines the impact of uncertainty on the sophistication of capital budgeting practices. While the theoretical applications of sophisticated capital budgeting practices (defined as the use of real option reasoning and/or game theory decision rules) have been well documented, empirical evidence on the factors that affect the importance and use of these sophisticated capital budgeting practices is scarce. I investigate the relation between specific uncertainties and sophisticated capital budgeting practices in 189 Dutch organizations. The empirical results show that sophisticated capital budgeting involves the use of multiple tools and procedures (such as Monte Carlo simulations, certainty equivalents, Game Theory decision rules and Real Option Reasoning). An increase in financial uncertainty is associated with the use and importance of sophisticated capital budgeting practices. Finally, size and industry are also related to the use and importance of sophisticated capital budgeting practices. http://repub.eur.nl/res/pub/6993/ 2005-10-14T00:00:00Z This study investigates the extent to which Dutch organizations use ‘new’ performance measures to deal with the perceived inadequacies of traditional accounting performance measures. In addition, the determinants of the use of these ‘new’ performance measures are documented; finally, the alignment hypothesis is tested. Using survey data from Dutch firms, I find that non-financial measures appear to be used most often in addition to more traditional performance measures; economic value measures and subjective measures appear to be used to a lesser extent. Second, the results indicate that the importance of the shareholder value goal and size are positively related to the use of economic value measures. The importance of the shareholder value goal, a growth mission, task culture and size are all positively associated with the use of non-financial measures. The (relative) use of subjective measures is negatively related to size. Finally, I find no support for the alignment hypothesis that a mismatch between the firm’s strategic and contextual characteristics and its performance measurement system adversely affect performance.