Performance Measurement System as a Driver Employee Innovation: A Study of the Role of Organizational Ambidexterity and Organizational Structure – A Conceptual Analysis

Parjiyati Parjiyati ()
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Parjiyati Parjiyati: Universitas Sarjanawiyata Tamansiswa

A chapter in Proceedings of the 1st International Conference on Business, Economic, and Social Sustainability (ICOBES 2025), 2026, pp 400-412 from Springer

Abstract: Abstract This study aims to develop a conceptual understanding of the role of the Performance Measurement System as a driver of employee innovation by considering the mediating role of Organizational Ambidexterity and Organizational Structure. Based on the integration of various theories such as Contingency Theory, Dynamic Capabilities Theory, Ambidextrous Organization Theory, and Agile Organizational Structure Theory. This article proposes a conceptual framework that emphasizes the strategic relationship between the Performance Measurement System, exploration – exploitation balance, organizational structure flexibility, and employee innovative behavior. This research approach is conceptual in nature, using conceptual analysis methods through an in-depth review of empirical and theoretical literature. Theoretically, this study contributes to the enrichment of literatures on the integration of Performance Measurement Systems, organizational ambidexterity, and organizational structure within the framework of dynamic capability theory.

Keywords: Performance Measurement System; Organizational Ambidexterity; Organizational Structure; Employee Innovation; Conceptual Analysis (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-626-5_30

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DOI: 10.2991/978-94-6239-626-5_30

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