The design and use of an integrated performance management system: a descriptive case study

Purpose: This study aims to evaluate the applicability of Ferreira and Otley’s (2009) framework in describing and explaining the structure and components of performance management systems (PMSs). Design/methodology/approach: Data are gathered through semi-structured interviews and by analyzing the company’s annual reports, electronic records and printed documents. To enhance the understanding of the observed performance management (PM) practices, the study utilizes Burns and Scapens’ (2000) institutional framework. Findings: The findings reveal that the selected case company operates a relatively advanced PMS with objectives, techniques and procedures that transcend the conventional boundaries of performance measurement. While the analysis of the case materials shows certain alignments with the chosen theoretical framework, the PM practices observed within the company and its strategic business units also highlight certain gaps in the conceptualization of the framework. Research limitations/implications: The results and interpretations in this study are derived from a single case company, which restricts the ability to generalize the findings across a broader range of organizations. However, the study’s findings are expected to contribute to the theory-building of PM frameworks. Practical implications: The study’s findings may help bridge the gap between PM theories and real-world business practices, providing feedback on how PMSs are applied in practice and their usefulness and relevance to practitioners. Originality/value: This study’s insights may inspire researchers in the field of management accounting (MA) to continue developing more integrated theoretical frameworks and to delve further into the study of PM and management control (MC) practices.