Performance measurement effects on organizational responses to threats

Purpose – The purpose of this paper is to explain how an organization’s performance measurement system can influence the appropriateness of an organization’s responses to threats. Design/methodology/approach – Inductive and deductive reasoning, drawing on major theories and on empirical findings in the management literature. Findings – An organization’s performance measurement system can influence the effectiveness of the organization’s detections of threats and the appropriateness of the organization’s responses to threats and, in these ways, contribute to the organization’s robustness and sustainability. Practical implications – Formation of an appropriate performance management system can prove critical to both detection of and responses to organizational threats. As such, an organizational performance management system can contribute to organizational robustness and sustainability. Originality/value – The idea, that an organization’s performance measurement system can influence the effectiveness of the organization’s detections of threats and the appropriateness of the organization’s responses to threats, is not articulated in the management literature. Thus, the research reported here is original and would seem to have value to the research community, the organization design community (as an organization’s control systems are an important component of its architecture), and the management community.