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Supply Chain Leaders' Strategies for Selecting Performance Measures

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Supply Chain Leaders' Strategies for Selecting Performance Measures Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2020 Supply Chain Leaders’ Strategies for Selecting Performance Measures Elizabeth Brush Nohe Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral dissertation by Elizabeth B. Nohe has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Branford McAllister, Committee Chairperson, Management Faculty Dr. Karina Kasztelnik, Committee Member, Management Faculty Dr. Lisa Barrow, University Reviewer, Management Faculty Chief Academic Officer and Provost Sue Subocz, Ph.D. Walden University 2020 Abstract Supply Chain Leaders’ Strategies for Selecting Performance Measures by Elizabeth B. Nohe MPhil, Walden University, 2019 MS, Loyola University Baltimore, 1994 BSChE, Rutgers University, 1986 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University November 2020 Abstract There is a performance gap between supply chain leaders versus laggards in critical areas such as service and shareholder value. Although research indicates that the reasons for the performance differences are choosing the wrong performance measures and setting goals too low, there remains a lack of knowledge and understanding regarding the decision-making strategies used by supply chain leaders in selecting key performance measures and goals for their respective organizations. The purpose of this descriptive phenomenological study was to improve the understanding of the decision-making strategies used by supply chain leaders in their selection of key performance measures and associated goals. The conceptual framework was decision-making theory. The research question concerned the decision-making strategies used by supply chain leaders in choosing the key performance measures and goals for their organizations. Fifteen senior supply chain professionals from organizations recognized in the Gartner Top 25 Supply Chains for 2016 were interviewed. Major findings were that a majority of participants employed multiple decision-making strategies both in choosing performance measures and in determining goals. Naturalistic decision-making strategies were used by all participants in performance measure selection although heuristics decision-making strategies were used most frequently in setting goals. To create positive social change, supply chain leaders should use multiple decision-making strategies with a focus on naturalistic decision-making for performance measure selection and heuristics decision- making strategies for goal setting. Doing so may increase stakeholder value benefitting employees, the company, and the communities in which the company operates. Supply Chain Leaders’ Strategies for Selecting Performance Measures by Elizabeth B. Nohe MPhil, Walden University, 2019 MS, Loyola University Baltimore, 1994 BSChE, Rutgers University, 1986 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University November 2020 Dedication This study is dedicated to my mother, Elizabeth Whinnen Evenson, who taught me so much through what she said and, more importantly, how she lived. Mom taught me to remain curious and open to new experiences; to read everything I could get my hands on; to write with proper grammar; and to be optimistic, grateful, self-reliant, and tenacious. She showed me how to overcome any obstacle and to believe I could accomplish anything I set my mind to. Most importantly, she taught me the love of a mother for a child and to live a life of dignity and grace. Although she did not live to see me finish my PhD, I can feel her love and pride in every fiber of my being. Acknowledgments There are so many people I wish to thank for helping me achieve my lifelong goal of earning my PhD. First, I want to thank my husband, Doug Nohe, who made this journey possible through his encouragement, love, prodding, and provision of the time and space I needed to make progress. And a big thank you to Jenny, Katie, and Kendall, my adult daughters, for letting me know how proud they were of me for working on my PhD, expressing interest in the topic, and cheering me on. Thank you to my PhD cohort for their advice, guidance, and support, particularly Cheryl Douthitt, Lori Larson, and Putnam Texel, all of whom I met in class and who will remain lifelong friends. I also want to thank my many accountability partners who regularly checked in on and provided encouragement to me. I am especially grateful to the senior supply chain professionals who participated in my study. Thank you all for your time, patience, and candor. I learned so much from each of you. And a special thanks to my committee: Dr. Branford McAllister, my committee chairperson, whose advice and guidance made me a better writer and researcher and who seemed to know just when I needed a push or some words of encouragement; Dr. Karina Kasztelnik, my second committee member, who provided support and guidance on conducting a descriptive phenomenological study; and Dr. Lisa Barrow, university reviewer, whose deep knowledge of APA form and style improved the readability of my study. Table of Contents List of Tables ..................................................................................................................... vi List of Figures ................................................................................................................... vii Chapter 1: Introduction to the Study ....................................................................................1 Background of the Study ...............................................................................................2 Problem Statement .........................................................................................................4 Purpose of the Study ......................................................................................................5 Research Question .........................................................................................................5 Conceptual Framework ..................................................................................................6 Nature of the Study ........................................................................................................9 Definitions....................................................................................................................10 Assumptions .................................................................................................................11 Scope and Delimitations ..............................................................................................13 Limitations ...................................................................................................................14 Significance of the Study .............................................................................................15 Significance to Theory .......................................................................................... 16 Significance to Practice......................................................................................... 16 Significance to Social Change .............................................................................. 17 Summary and Transition ..............................................................................................18 Chapter 2: Literature Review .............................................................................................20 Literature Search Strategy............................................................................................22 Conceptual Framework ................................................................................................23 i Literature Review.........................................................................................................29 Overview of Performance Measurement Systems ................................................ 29 Evolution of Performance Measurement Systems ................................................ 30 Linkages Among Performance Measurement Systems, Behavior, and Performance .............................................................................................. 47 Overview of Decision-Making Research .............................................................. 55 Gap in the Literature ....................................................................................................91 Research Approach ......................................................................................................91 Phenomenological Research ................................................................................. 92 Descriptive Phenomenology ................................................................................. 92 Summary and Conclusions ..........................................................................................96
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