Using car dealership data, we examine the relevance of forward-looking (FL) and contemporaneous (CO) measures for pay-for-performance incentives (bonus, annual raise, promotions) for long-horizon employees. Economic models suggest that while contracts with FL performance measures mitigates the...

Many organizations implement the Balanced Scorecard (BSC) in their headquarters and strategic business units (SBUs), but not in the shared service units (SSUs). Kaplan and Norton (2006) indicate that it is important to implement the BSC on SSUs in order to provide administrators with information...

Agency theory argues that pay-performance sensitivity to agents should be negatively associated with risk; however, some empirical evidence suggests the opposite. While analytical studies do not reach consensus on the relation between competition and pay-performance sensitivity, empirical...

Based on the balanced scorecard (BSC), a strategic alignment among different departments and external parties is the key to improve organizational performance. According to the “social exchange theory”, an organization exploits opportunities to align with external partners, such as...