In this study, we investigate the choice of performance measures in promotion decisions. In particular, we examine the extent to which managers incorporate different performance measures for different types of job assignment. Based on a simple theoretical framework, we predict that, in making...

The importance of human capital in building and maintaining competitive advantage is undisputed, and ensuring that employees invest in their human capital has thus become of utmost importance to firms. Despite this, management control research has not dedicated much attention to the personnel...

We investigate the determinants and consequences of budget reallocations—that is, corrective changes to the budget made during the year. Using proprietary data from a large consumer goods manufacturer, we analyze the extent to which initial budgeting decisions drive reallocations. Examining...

I empirically investigate the impact of an organization’s creativity dependency on the design of its incentive system. In firms for which the primary source of value creation is the creativity of core employees, the designs of incentive systems are particularly challenging. The nature of...

In this study we analyze the interactive effects of delegation of decision rights (task autonomy) and team task interdependence on creative team performance. Creative teams are characterized by a high requirement for both autonomy and task interdependence, suggesting that ideally creative...

In this paper, we empirically examine the capital budgeting process of a large multi-divisional firm and the implications of the dynamics that underlie this process. Although investment decisions are one of the most important decisions made by firms, relatively little is known about the capital...