Performance measurement system change in an emerging economy bank

Rahat Munir, Kevin Baird and Sujatha Perera

Accounting, Auditing & Accountability Journal, 2013, vol. 26, issue 2, 196-233

Abstract: Purpose - This study aims to describe and understand performance measurement system (PMS) change in an emerging economy bank. Design/methodology/approach - Using institutional theory as a theoretical lens, the study uses Kasurinen's accounting change model to explain management accounting change as a product of motivators, catalysts and facilitators. The model also focuses on how confusers, frustrators and delayers inhibit PMS change and the role of leaders in the change process. Data were gathered from multiple sources including relevant internal and external documents covering a ten‐year period (1997‐2007), and semi‐structured interviews with managers from different hierarchical levels. Findings - The bank's PMS experienced two significant changes from 1997 to 2007. While uncertain economic conditions, increasing competition, and pressures to improve performance and enhance accountability motivated changes in the bank's performance measurement system, the major catalysts of change were the financial losses experienced, major regulatory changes, and the appointment of a new board of directors and president. The change leader played an important role in overcoming resistance to change and in ensuring adequate technical support and training was provided to facilitate the change. Practical implications - Bank managers must be aware of the influence of institutional factors on PMSs. In particular, they need to be aware of the factors that can necessitate change (motivators), initiate change (catalysts) and the prevailing conditions required to support change (facilitators) in order to maintain the utility of PMSs. Originality/value - The paper provides a more detailed insight into the impact of institutional factors on changes in PMSs in the context of an emerging economy, which will assist practitioners in addressing issues concerning PMSs changes in similar contexts.

Keywords: Performance measurement systems; Factors influencing and inhibiting change; Banking sector; Emerging economy; Change management; Emerging markets (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:aaajpp:v:26:y:2013:i:2:p:196-233

DOI: 10.1108/09513571311303710

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