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Advisor(s)
Abstract(s)
This study explores the relationship between contextual variables—strategy, per ceived environmental uncertainty (PEU), and decentralization—and the use of non fnancial performance measures (NFPM) for managerial compensation in small and medium enterprises (SMEs). Using questionnaire data from SMEs’ managers, we fnd that the use of NFPM is positively associated with PEU hostility and decentrali zation. Furthermore, our study shows that these results are mostly driven by CEO’s compensation (in comparison to non-CEOs compensation) and family frms (in comparison to non-family frms). Finally, our analyses reveal that the use of diferent types of NFPM (customer-oriented, employee-oriented and operations-oriented) is
associated with distinct contextual variables. Particularly, customer-oriented NFPM are negatively related to PEU dynamism and positively related to decentralization, while operations-oriented NFPM are positively related to PEU hostility.
Description
Artigo publicado em revista científica internacional.
Keywords
SME Compensation Non-financial performance measures Strategy Perceived environmental uncertainty Decentralization
Citation
Alves, I., Lourenço, S.M. (2022). The use of non-financial performance measures for managerial compensation: Evidence from SMEs. Journal of Management Control, 33(2), 151–187. https://doi.org/10.1007/s00187-022-00337-8
Publisher
Springer