The effects of nonfinancial performance measures on role clarity, procedural fairness and managerial performance

Abstract

Purpose

The purpose of this paper is to ascertain if it is procedural fairness, or role clarity, or both procedural fairness and role clarity that mediate the relationship between non-financial measures and managerial performance. Role clarity and procedural fairness may mediate the relationship between performance measures and managerial performance.

Design/methodology/approach

A survey questionnaire was used to collect the required data. The sample was drawn from 149 managers from 103 large manufacturing organisations located in the UK. The data were analysed by structural equation modelling.

Findings

The results indicate that it is role clarity that significantly mediates the relationship between non-financial measures and managerial performance. Surprisingly, procedural fairness has no significant mediating effect on the relationship.

Originality/value

To date, no prior studies have investigated systematically the effects of non-financial measures as well as the mechanism by which non-financial measures influence role clarity, procedural fairness and managerial performance. This study contributes by incorporating both procedural fairness and role clarity within an integrated model. This assists the research to ascertain precisely which variable (procedural fairness or role clarity) mediates the relationship between non-financial measures and managerial performance as well as the relative strengths of the two mediating variables.

Citation

Lau, C.M. (2015), "The effects of nonfinancial performance measures on role clarity, procedural fairness and managerial performance", Pacific Accounting Review, Vol. 27 No. 2, pp. 142-165. https://doi.org/10.1108/PAR-03-2013-0017