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Creation of Indicators Determining the Work of High-Tech Business Practitioners: Validity, Reliability, and Negotiation Revisited
Abstract
The authors address how performance indicators are configured and engineered in ERP-systems to follow up the activities of the knowledge workers in an oil and gas company. ERP-systems enable the development of new performance indicator systems, and give management simple dashboard tools to follow up and compare the performance of the organizational members across time and space. Decisions in organizations are increasingly taken on the basis of these abstract indicators that work as signs and inscriptions. This makes the development of such accounting indicators an interesting area of research because the representation of such indicators will to a large extent govern the decision making and practices of the organization. Who inscribes and controls the indicators controls the business. The authors discuss the development of such indicators as an inscription and translation process and how the indicators develop as a consequence of negotiations between influential actors. Finally, they address the consequences of these indicators and argue that they are dependent upon three key issues: the validity of the indicators, their reliability, and how indicators are negotiated. The authors’ research question is how do disparate organizational groups interplay with physical and technical elements to create indicators determining the work of high-tech business practitioners?
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