A study of the strategic value, uses and effects of Corporate Performance Management (CPM) Systems from a dynamic capability perspective

This thesis focuses on the strategic value, use and impacts of Corporate Performance Management (CPM) systems within organizations. CPM systems are a new class of information system that firms are adopting in order to improve performance and to become more competitive. CPM systems and the capabilities they engender are examined through the lens of the dynamic capability perspective. Dynamic capability may be an appropriate approach with which to study CPM systems because we believe that such systems impact performance by altering the resource base of the firm. A multi-part CPM performance model is presented in this paper that positions a successful implementation outcome as being reliant on three underlying capability constructs; IT infrastructure, Human Capital and Strategic Leadership. We propose firms that successfully implement and integrate CPM systems can consciously and deliberately develop a dynamic capability (CPM specific capability) that manifests itself as changes to business processes that reconfigure the core capability portfolio of the firm. We believe that such changes over time should lead to superior organizational performance. A total of 165 respondents filled out our survey designed to assess the impact of CPM systems on their firms and how these systems may have contributed to improved organizational performance. Interviews were conducted with twelve senior managers to explore our research themes and to add context and depth to the quantitative findings. We believe that CPM systems, although ubiquitous, generate information rich outputs and services that become deeply integrated within business processes in unanticipated ways, creating heterogeneities and economic differentials between firms. The introduction of CPM systems normally accompanies enterprise wide performance management initiatives making this research important as the implementation of these systems carries the potential for significant organizational change.