Does Functional Experience Impair the 'Balance' in Balanced Scorecards?

42 Pages Posted: 17 Sep 2007

See all articles by M. Elizabeth Haywood-Sullivan

M. Elizabeth Haywood-Sullivan

affiliation not provided to SSRN

Nathan V. Stuart

University of Wisconsin Oshkosh

Date Written: August 9, 2007

Abstract

In this paper, we examine the effect that individual characteristics, specifically functional experience and level of work experience, have on how managers acquire and use balanced scorecard information. Using Hambrick and Mason's information processing theory, we predict that a manager's functional experience will be associated with his or her information-acquisition behavior and final choice in an investment decision. We test our hypotheses using a laboratory experiment in which participants make a capital investment decision from a menu of available opportunities. We do not detect an association between individual characteristics and information-acquisition behavior but we do detect an association between individual characteristics and investment choice. We discuss how our findings help resolve the discrepancies in previous studies and suggest implications for companies that use the balanced scorecard.

Keywords: Management Accounting, Balanced Scorecard, Information Processing, Functional Experience

JEL Classification: M40, M46, G31, M52

Suggested Citation

Haywood-Sullivan, M. Elizabeth and Stuart, Nathan V., Does Functional Experience Impair the 'Balance' in Balanced Scorecards? (August 9, 2007). Available at SSRN: https://ssrn.com/abstract=1014424 or http://dx.doi.org/10.2139/ssrn.1014424

M. Elizabeth Haywood-Sullivan

affiliation not provided to SSRN ( email )

No Address Available

Nathan V. Stuart (Contact Author)

University of Wisconsin Oshkosh ( email )

College of Business
800 Algoma Boulevard
Oshkosh, WI 54904
United States
920-424-3472 (Phone)
920-424-7413 (Fax)

HOME PAGE: http://www.uwosh.edu/cob/faculty-and-staff/faculty/individual-pages/nathan-stuart

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