Article Critique Report: Management Accounting PG6253, Sem 2, 2018

This report provides a critical analysis of the research article "Contemporary performance measurement systems: A review of their consequences and a framework for research" by Franco-Santos, Lucianetti, and Bourne. The report summarizes the article's framework, which classifies the consequences of contemporary performance measurement (CPM) systems into individual behavior, performance consequences, and organizational capabilities. It highlights the strengths of the study, including its structure, sources, and validity, while also acknowledging limitations such as its reliance on a literature review and limited scope. The report discusses opportunities for future research, emphasizing the need to consider factors beyond CPM systems, such as managerial capabilities and cognitive biases. The study's internal and external validity are assessed, concluding that the study is supported by internal validity but has relatively less external validity due to its generalized nature. The report concludes that CPM systems play a significant role in communication, managerial processes, strategies, and organizational capabilities, but their impact on organizational routines and practices should be carefully considered. The references used in this article critique are also listed.

Article Critique Assignment (Weighting
percentage- 30%)
Management Accounting PG 6253,
Semester 2, 2018

Table of Contents
1. Introduction..................................................................................................................................3
2. Main body....................................................................................................................................3
2 (a). Summary paragraph...........................................................................................................3
2. (b). Assessment paragraphs.....................................................................................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

1. INTRODUCTION
The present study aims to make a critical analysis of considered research study that is
Contemporary performance measurement systems: A review of their consequences and a
framework for research and author of the study is Monica Franco-Santos a, Lorenzo Lucianetti
and Mike Bourne. This will be including of conceptual structure for interpreting the literature on
the outcomes of contemporary performance systems and the theories, supporting and explaining
the same consequences. Further, the framework is conducted on the basis of a deep review of 76
key studies in best academic journals in terms of operations, accounting and strategy. The study
intends to generate a better critique of a research article that critically evaluates the strengths,
weaknesses, as well as opportunities and internal and external validity, supported by validity and
reliability of appropriate measures. The study is based on secondary sources of data published in
the literature review, as all the information and data is collected from secondary sources and the
literature review is performed by following six key steps namely: a scoping study, literature
searching with identification of relevant studies, selection of studies that met the criteria,
development of dataset covering main variables, impacts of CPM system and assessing the
insights gained from literature review to arrive at valid conclusions(Franco-Santos, Lucianetti
and Bourne, 2012).
2. MAIN BODY
2 (a). Summary paragraph
The entire framework has classified the CPM’s outcomes into three elements which are
individual behaviour, performance consequences and organizational capabilities. In addition, the
paper considers the existing knowledge on the influence of the CPM, assessing the instability of
the limitation and scope of future research (Franco-Santos, Lucianetti and Bourne, 2012). At
present, contemporary performance measures are made up of the utilization of financial and non-
financial performance measures associated with the ultimate business strategy of the
organization.
The study makes evidence from the review conducted from 76 empirical studies that make a
suggestion, that CPM system considerably impacts the individual conduct, performance

capabilities intensely. In a specific manner, the claim is supported by data that, CPM is a
significant aspect when it comes to strategic communication, organizational capabilities and
management process.
2. (b). Assessment paragraphs
The study has been strengthened by various factors and has contributed to making the study
more relevant and useful. The strengths of the study are inclusive of:
 Proper structuring
 Viable sources
 Authenticity, reliability and validity
 Standardized approaches
 Key findings and empirical can be generalized
With the proper structure and mixture of viable sources, the research objectives and desired aims
and purpose of the articles are fulfilled (Silverman, 2016). The analysis and literature are linked
properly, and the key findings and empirical are presented effectively which are also aligned
with the analysis. In addition, the article is properly cited, while it is making sure that none of the
unauthentic sources is covered.
Regardless of the study’s strength, the study consists of some limitations, which are
 The study is conducted on the basis of literature review method, that in spite of being an
established and logical, the study has neglected some reliable and viable aspects.
 Its publishing has been done on an external journal basis, which was not given and the
referencing of the same has not been done in association with the work published on the
given list of journals.
 Another limitation of the study is that its publishing has not been done in the areas, apart
from the accounting, strategy and operations.
 Further limitations are that the study has been published in journals which are ranked as
low; also its publishing has been done in a language which is non-English, regarded to
the public sector firm.

 The study has been based on personal judgement and interpretation regarding the
variables as well as relationships examined. Further, this interpretation may not
correspond in a full manner with the emphasised findings developed by the authors.
The available opportunities for the prevailing research, and to cope up with the prescribed limit
is to pursue the approach recommended by the Franco-Santos et al. (2007) which states that, the
CPM system definition must concentrate on its essential and adequate requirements. It is argued
by the author that, there is the existence of a CPM system by considering financial as well as
non-financial performance factors that is employed to operate the strategic goals. In this way, the
explanation is based on several assumptions, which are that it assumes the work of the CPM
system allows assessing performance for the purpose of information and motivation. Next, it
makes assumptions of the fact that CPM systems include of a supportive infrastructure, which
differs from method merely comprise a unpretentious data collection and analysis procedure to a
set information system ease by the business intelligence solutions. Ultimately, it makes the
assumption of the fact that a CPM system is engaged with the information provision processes
(Bakotić, 2014).
For the future scope of the study, some aspects are required to be emphasized, that only CPM
does not work alone, but it is supported by the managerial and employees capabilities to respond
it. However, there is a little study conducted on the degree to which the personal characteristics
impact the CPM system; it calls for more improvement to investigate more on this topic. In
addition, the studies can also investigate the cognitive biases of managers like cognitive
dissonance which can highlight and can take into account that why the majority of the existing
CPM systems, fail to forecast the emerging financial crises (Leung, 2015). Moreover, the studies
can also empathize on the impacts of the manager’s age, experience, skills and capabilities, in
contrast with the evidence which are held and studied. Additionally, the new research can make
further investigation of the effect of CPM system made on innovation; it is because this specific
area is not clear and described in a better manner.
Regardless of the classification of the CPM consequences in accordance with the given
framework, the internal and external factors and variables are considered that were held to have
an impact over the consequences and the possible literature area that are required to the future
research. The internal validity and reliability of the research are based on the general relationship

between the particular subject variables in the conducted study. It is the extent by which the
consequences are attributed to the independent variables (Upadhaya, Munir and Blount, 2014).
By considering this framework and concept, it can be considered that the report is supported by
the internal validity as all the subparts are connected with the main objective of search; systems
applied for contemporary performance measurement, control framework level, balanced
scorecard, strategic performance measurement systems, diverse performance measures and key
performance indicators (LoBiondo-Wood and Haber, 2014). Further justification of selected
methodology is provided to ensure the suitability for the current research. In addition to this, data
analysis and literature review are developed in a sequential manner to complement one another
to achieve the research objectives and purpose in an optimum manner.
On the other hand, the external validity is supported by procedural variables, representing the
study generalization and the manner in which it is generalized to the particular area. It is the
extent by which the consequences of the study could be generalized (Sutton and Austin, 2015).
The external validity of the study is comparatively less because the study is very generalized it
is totally based on a single topic which is contemporary performance measures. However, the
study is conducted by making use of authentic, viable and justifiable links, academic sources and
journals which is a good point. Another better aspect of being generalized is that it extends the
scope of future research, as next research can be conducted by considering more points, topics
and subjects, thereby making the study more specific.
3. CONCLUSION
The present study concludes CPM system have a great role in the communication, managerial
process, strategies and organizational capabilities, thereby allowing the firms to excel. Despite its
positives, it also has negatives which can impact the organizational routines and practices,
affecting the performance level as a whole. It can be stated that the study is conducted by
considering viable as well as reliable sources, which ensure its validity in terms of internal as
well as external factors.

REFERENCES
Bakotić, D., 2014. Contemporary performance measurement systems. Ekonomska misao i
praksa: časopis Sveučilista u Dubrovniku, 23(1), p.373.
Franco-Santos, M., Lucianetti, L. and Bourne, M., 2012. Contemporary performance
measurement systems: A review of their consequences and a framework for
research. Management accounting research, 23(2), pp.79-119.
Leung, L., 2015. Validity, reliability, and generalizability in qualitative research. Journal of
family medicine and primary care, 4(3), p.324.
LoBiondo-Wood, G. and Haber, J., 2014. Reliability and validity. Nursing research-ebook:
Methods and critical appraisal for evidencebased practice. Missouri: Elsevier Mosby, pp.289-
309.
Silverman, D. ed., 2016. Qualitative research. Sage.
Sutton, J. and Austin, Z., 2015. Qualitative research: data collection, analysis, and
management. The Canadian journal of hospital pharmacy, 68(3), p.226.
Upadhaya, B., Munir, R. and Blount, Y., 2014. Association between performance measurement
systems and organisational effectiveness. International Journal of Operations & Production
Management, 34(7), pp.853-875.