The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele.
The purpose of this study was to investigate the impact of an important aspect of an organizational context, specifically organizational culture, and different types of compensation schemes on strategy surrogation. Strategy surrogation occurs when managers focus on the measures in the strategic perf...
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| Language: | en |
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Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA
2019
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| Online Access: | https://ir.uitm.edu.my/id/eprint/29372/1/29372.pdf https://ir.uitm.edu.my/id/eprint/29372/ https://apmaj.uitm.edu.my/ |
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| _version_ | 1863791111969964032 |
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| author | Akinyele, Kazeem Olalekan |
| author_facet | Akinyele, Kazeem Olalekan |
| author_sort | Akinyele, Kazeem Olalekan |
| building | Tun Abdul Razak Library |
| collection | Institutional Repository |
| content_provider | Universiti Teknologi Mara |
| content_source | UiTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | The purpose of this study was to investigate the impact of an important aspect of an organizational context, specifically organizational culture, and different types of compensation schemes on strategy surrogation. Strategy surrogation occurs when managers focus on the measures in the strategic performance measurement systems (SPMS) on which they are compensated and completely or partially lose focus on the overall strategic objectives of the organization. This study utilized a 2x2 between-participants experimental design that manipulates organizational culture (control-dominant vs. flexibility-dominant) and the type of compensation scheme (fixed pay vs. pay-for-performance). The study was conducted online with 80 participants from the Amazon Mechanical Turk (MTurk) as proxies for managers. The results show that employees operating under a control-dominant culture do not surrogate more than employees operating under a flexibility-dominant culture. Additionally, the type of organizational culture does not moderate the relationship between incentive systems and strategy surrogation. However, employees operating under a pay-for-performance compensation scheme significantly surrogate more than employees operating under a fixed pay compensation scheme. The study contributes to the incentives and organizational culture literature as well as strategy surrogation research by examining institutional factors that may inhibit or exacerbate surrogation. Additionally, the study contributes to the judgment and decision-making literature by highlighting employees’ decision-making outcomes under different compensation schemes. |
| format | Article |
| id | my.uitm.ir-29372 |
| institution | Universiti Teknologi Mara |
| language | en |
| publishDate | 2019 |
| publisher | Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA |
| record_format | eprints |
| spelling | my.uitm.ir-293722026-04-27T04:12:02Z https://ir.uitm.edu.my/id/eprint/29372/ The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. apmaj Akinyele, Kazeem Olalekan Organization Organizational behavior. Corporate culture The purpose of this study was to investigate the impact of an important aspect of an organizational context, specifically organizational culture, and different types of compensation schemes on strategy surrogation. Strategy surrogation occurs when managers focus on the measures in the strategic performance measurement systems (SPMS) on which they are compensated and completely or partially lose focus on the overall strategic objectives of the organization. This study utilized a 2x2 between-participants experimental design that manipulates organizational culture (control-dominant vs. flexibility-dominant) and the type of compensation scheme (fixed pay vs. pay-for-performance). The study was conducted online with 80 participants from the Amazon Mechanical Turk (MTurk) as proxies for managers. The results show that employees operating under a control-dominant culture do not surrogate more than employees operating under a flexibility-dominant culture. Additionally, the type of organizational culture does not moderate the relationship between incentive systems and strategy surrogation. However, employees operating under a pay-for-performance compensation scheme significantly surrogate more than employees operating under a fixed pay compensation scheme. The study contributes to the incentives and organizational culture literature as well as strategy surrogation research by examining institutional factors that may inhibit or exacerbate surrogation. Additionally, the study contributes to the judgment and decision-making literature by highlighting employees’ decision-making outcomes under different compensation schemes. Accounting Research Institute (ARI) and UiTM Press, Universiti Teknologi MARA 2019-04 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/29372/1/29372.pdf Akinyele, Kazeem Olalekan (2019) The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. (2019) Asia-Pacific Management Accounting Journal (APMAJ) <https://ir.uitm.edu.my/view/publication/Asia-Pacific_Management_Accounting_Journal_=28APMAJ=29.html>, 14 (1). pp. 219-245. ISSN 2550-1631 https://apmaj.uitm.edu.my/ 10.24191/APMAJ.v14i1-11 10.24191/APMAJ.v14i1-11 10.24191/APMAJ.v14i1-11 |
| spellingShingle | Organization Organizational behavior. Corporate culture Akinyele, Kazeem Olalekan The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. |
| title | The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. |
| title_full | The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. |
| title_fullStr | The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. |
| title_full_unstemmed | The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. |
| title_short | The effects of the incentive systems and organizational culture on strategy surrogation / Kazeem Olalekan Akinyele. |
| title_sort | effects of the incentive systems and organizational culture on strategy surrogation / kazeem olalekan akinyele. |
| topic | Organization Organizational behavior. Corporate culture |
| url | https://ir.uitm.edu.my/id/eprint/29372/1/29372.pdf https://ir.uitm.edu.my/id/eprint/29372/ https://apmaj.uitm.edu.my/ |
| url_provider | http://ir.uitm.edu.my/ |