An Analytical framework to examine changes in performance measurement systems within the banking sector

Rahat Munir, Sujatha Perera, Kevin Baird

Research output: Contribution to journalArticlepeer-review

Abstract

Drawing on institutional theory, more specifically DiMaggio & Powell’s (1983) notion of institutional isomorphism, and Oliver’s (1991) typology of strategic responses to institutional pressures, this paper develops an analytical framework to examine the factors that influence organisations to change their performance measurement systems, and the responses to consequential change efforts within the context of the banking industry. The paper suggests that various macro-level environmental factors which affect the functioning of banks (e.g. economic conditions, technological innovations, socio-cultural and political factors) exert pressure (coercive, mimetic and normative) to change their performance measurement practices. The paper proposes that rather than passively conforming to such pressure, banks respond strategically, with the strategic responses taking various forms including non-compliance. The proposed framework could be used by managers and researchers to examine and understand changes in performance measurement systems in banks and to facilitate the effective adoption and implementation of performance measurement systems.
Original languageEnglish
Pages (from-to)93-115
Number of pages23
JournalAustralasian Accounting, Business and Finance Journal
Volume5
Issue number1
Publication statusPublished - 2011

Keywords

  • change in performance measurement systems
  • institutional theory
  • banking sector
  • strategic responses

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