Joint Selection of Balanced Scorecard Targets and Weights in a Collaborative Setting

Posted: 18 Feb 2011 Last revised: 25 Jan 2018

See all articles by Hemantha Herath

Hemantha Herath

Brock University

Wayne G. Bremser

Villanova University

Jacob G. Birnberg

University of Pittsburgh - Katz Graduate School of Business

Date Written: Decekber 1, 2010

Abstract

Information asymmetries may create problems in developing both the balanced scorecard (BSC) targets and weights. In practice, the process of assigning weights to performance measures can be challenging in terms of reaching a consensus between top management and divisional managers. In this research, we address the issues of target and weight selection using a collaborative decision-making model. Most of the previous research related to performance measurement has assumed self-interested agents. When weights are assigned subjectively, there is evidence in the literature of common-measure bias leading to BSC disagreement (conflict). We contribute to the literature by considering actor preferences in a novel approach that permits the parties jointly to determine optimal (or approximately optimal) BSC targets and weights.

Suggested Citation

Herath, Hemantha and Bremser, Wayne G. and Birnberg, Jacob G., Joint Selection of Balanced Scorecard Targets and Weights in a Collaborative Setting (Decekber 1, 2010). Journal of Accounting and Public Policy, Vol. 29, No. 1, 2010, Available at SSRN: https://ssrn.com/abstract=1762675

Hemantha Herath (Contact Author)

Brock University ( email )

St. Catharines, Ontario L2S 3A1
Canada

Wayne G. Bremser

Villanova University ( email )

Villanova, PA 19085
United States

Jacob G. Birnberg

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States
412-648-1719 (Phone)
412-648-1693 (Fax)

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