USE OF NON-FINANCIAL PERFORMANCE MEASURES, STRATEGY, AND MANAGERIAL TIME ORIENTATION FROM ‘BEST COMPANIES TO WORK IN’

• Autor(a) principal: Braga de Aguiar, Andson
• Data de Publicação: 2014
• Outros Autores: Frezatti, Fábio
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: REAd (Porto Alegre. Online)
• Texto Completo: https://seer.ufrgs.br/index.php/read/article/view/46088
• topic: Estratégia; Medidas de Desempenho; Orientação Temporal dos Gestores; Strategy; Performance Measures; Managerial Time Orientation; Estrategia; Medidas de Desempeño; Orientación Temporal de los Gestores

The main purpose of this study is to investigate the relationship between the use of non-financial performance measures and managerial time orientation by empirically examining normative accounting predictions with regard to the positive relationship between the use of non-financial performance measures and managerial time orientation. In addition, this paper explores the moderating effect of firm’s strategic mission on the relationship between the use of non-financial performance measures and managerial time orientation by examining whether a long-term strategic mission intensifies the positive relationship between nonfinancial performance measures and managerial time orientation. Therefore, hypotheses are developed concerning the association between the use of non-financial indicators and managerial time orientation, as well as whether strategy moderates this relationship, based on the relevant accounting literature on the theme. A survey is carried out in which questionnaires are sent to the email address of a sample of middle level managers working in companies with business in Brazil. It is applied the statistical technique of partial least squares (PLS) and subgroup analysis to test the research hypotheses. The results indicate the presence of a significant relationship between the use of non-financial performance measures and managerial time orientation, but, contrary to normative predictions and our expectations, a shorter-term orientation is associated with a greater relative importance of non-financial indicators. Moreover, contrary to our expectations either, the results indicate that the firm’s strategic mission moderates this relationship as follows: for firms pursuing a build strategy, the use of non-financial measures is negatively related to managerial time orientation. The main implication of this study is that there may be certain situations where the use of non-financial performance is does not contribute for long-term decision-making. Future research could explore these situations so that you can get a broader understanding of the effects of different performance measures on managerial time orientation.