Strategic Performance Management Systems: Impact on Business Results

This study proposes and tests a model to explain the impact on business results of a specific type of information systems: Strategic Performance Measurement Systems (SPMS). Drawing from the literatures in management, information systems, and accounting, the model proposes that SPMS information technology (IT) variables, which include both technical characteristics and technical outcomes, affect business results. Those IT variables are, in turn, affected by SPMS system variables (information quality and system design). Finally, IT and system variables are affected by organizational variables related to information processing capabilities and requirements. Using path analysis, we found empirical support for the model by analyzing data from large-scale survey with a sample of 1,990 respondents. System effectiveness and Internet usage were the two IT variables found to have the most impact on business results. Furthermore, system design had a significant role in determining all IT variables that had an impact on business results.