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

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.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 15 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.