We examine (1) the association between performance measurement system (PMS) diversity and product innovation; and (2) the interdependence between PMS diversity and PMS use (diagnostic or interactive) for product innovation. We expect the association between PMS diversity and product innovation to depend on the trade-off between PMS diversity's potential benefits of meeting enhanced information needs and potential costs of information overload. Further, we apply knowledge recombination theory of innovation, which suggests that innovation requires access to diverse information and integration efficiency. Thus, we expect PMS diversity and PMS use to be complementary in supporting product innovation. We test our predictions using survey data collected over two waves. We find a positive association between PMS diversity and product innovation. We test for bidirectional effects, and find that the direction of the association is from PMS diversity to innovation. Furthermore, we find strong support for the complementarity between PMS diversity and PMS use (diagnostic or interactive) in supporting product innovation. Lastly, we document that environmental uncertainty moderates these effects.
Performance measurement system diversity and product innovation: Evidence from longitudinal survey data
Lucianetti, Lorenzo
2023-01-01
Abstract
We examine (1) the association between performance measurement system (PMS) diversity and product innovation; and (2) the interdependence between PMS diversity and PMS use (diagnostic or interactive) for product innovation. We expect the association between PMS diversity and product innovation to depend on the trade-off between PMS diversity's potential benefits of meeting enhanced information needs and potential costs of information overload. Further, we apply knowledge recombination theory of innovation, which suggests that innovation requires access to diverse information and integration efficiency. Thus, we expect PMS diversity and PMS use to be complementary in supporting product innovation. We test our predictions using survey data collected over two waves. We find a positive association between PMS diversity and product innovation. We test for bidirectional effects, and find that the direction of the association is from PMS diversity to innovation. Furthermore, we find strong support for the complementarity between PMS diversity and PMS use (diagnostic or interactive) in supporting product innovation. Lastly, we document that environmental uncertainty moderates these effects.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
