Critical realism and performance measurement and management: Addressing challenges for knowledge creation

Abstract

Purpose The purpose of this paper is to explore the implications of adopting a critical realist position for the study of performance measurement and management (PMM) systems. Design/methodology/approach This paper discusses recent challenges to knowledge creation in PMM, arguing that overcoming these will require revisiting often implicit philosophical assumptions related to how the world is and how we learn about it. A critical realist perspective is explored and illustrated with the case of a software company attempting to empower and motivate its team. Findings Critical realism provides a means of building interdisciplinary knowledge in PMM. In addition to a generative view of causality, critical realism could augment a systems view of PMM by adopting a stratified view of reality and through its applied approach to knowledge building. The case illustrates the RRREIC approach and highlights the interplay of mechanisms of different scales and how this requires interdisciplinarity. Research limitations/implications Approaching the study of PMM with critical realism requires going beyond a particular tool or practice to understand the theory behind it. Such an approach can facilitate a layered, nuanced analysis of the issues facing organizations in a changing context. Originality/value This paper adds to discussion of philosophical topics in management and PMM and could help resolve ongoing challenges to knowledge building in the field, especially around barriers to conducting interdisciplinary research. In combination with rigorous methods, a strong philosophical base can facilitate relevant, lasting theories that can respond to a changing organizational context.