Buyout strategies and performance measurement systems
Buyout strategies and performance measurement systems
Buyouts normally have a life cycle that extends from deal structuring, changes in company management practice, and then, finally, harvesting investment. Underlying these phases of investment is the application of two discernible sets of strategies that reflect the buyout sponsors’ concern for creating a re-vitalized focus on performance. We develop and test a model to investigate buyout firms’ strategies associated with different stages of their development and their link with performance related management control systems (MCS). We find that focus strategies, the initial phase of the buyout’s life cycle, are positively related to objective control emphasizing measurement of output. However, when revenue maximization through differentiation becomes a priority, as is normally the case in the next stage of the buyout, did then subjective performance measures more commonly used. In terms of the impact of MCS on firm performance, we find a positive relationship between these systems and firm performance.
focus strategy, differentiation, objective performance measures, subjective performance measures, firm performance
Nisar, Tahir M.
6b1513b5-23d1-4151-8dd2-9f6eaa6ea3a6
Nisar, Tahir M.
6b1513b5-23d1-4151-8dd2-9f6eaa6ea3a6
Nisar, Tahir M.
(2010)
Buyout strategies and performance measurement systems.
Venture Capital Networks, London, United Kingdom.
18 - 19 Mar 2010.
45 pp
.
(Submitted)
Record type:
Conference or Workshop Item
(Paper)
Abstract
Buyouts normally have a life cycle that extends from deal structuring, changes in company management practice, and then, finally, harvesting investment. Underlying these phases of investment is the application of two discernible sets of strategies that reflect the buyout sponsors’ concern for creating a re-vitalized focus on performance. We develop and test a model to investigate buyout firms’ strategies associated with different stages of their development and their link with performance related management control systems (MCS). We find that focus strategies, the initial phase of the buyout’s life cycle, are positively related to objective control emphasizing measurement of output. However, when revenue maximization through differentiation becomes a priority, as is normally the case in the next stage of the buyout, did then subjective performance measures more commonly used. In terms of the impact of MCS on firm performance, we find a positive relationship between these systems and firm performance.
More information
Submitted date: 2010
Venue - Dates:
Venture Capital Networks, London, United Kingdom, 2010-03-18 - 2010-03-19
Keywords:
focus strategy, differentiation, objective performance measures, subjective performance measures, firm performance
Identifiers
Local EPrints ID: 155083
URI: http://eprints.soton.ac.uk/id/eprint/155083
PURE UUID: c48d61f3-990f-4a7e-b152-4935dca09915
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Date deposited: 28 May 2010 08:36
Last modified: 14 Mar 2024 02:45
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