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Design and Use of Performance Measurement Systems Under Uncertainty

Olsson, Melker LU and Selde, Mattias LU (2026) BUSN79 20261
Department of Business Administration
Abstract
Seminar date: 2026-06-02

Course: BUSN79 Degree Project in Accounting & Finance, 15 credits

Authors: Melker Olsson and Mattias Selde

Advisor/Examiner: Anders Anell / Elin Funck

Five key words: Uncertainty, Ambiguity, Performance Measurement Systems, Swedish
Municipalities, Simons’ Levers of Control

Purpose: The purpose of this study is to develop an understanding of how performance
measurement systems function as governance tools in Swedish municipalities under
conditions of uncertainty and ambiguity, with a focus on how PMSs are designed and used to
support control, accountability, learning, and adaptation.

Methodology: The study adopts a qualitative multiple case study design based on three
Swedish municipalities.... (More)
Seminar date: 2026-06-02

Course: BUSN79 Degree Project in Accounting & Finance, 15 credits

Authors: Melker Olsson and Mattias Selde

Advisor/Examiner: Anders Anell / Elin Funck

Five key words: Uncertainty, Ambiguity, Performance Measurement Systems, Swedish
Municipalities, Simons’ Levers of Control

Purpose: The purpose of this study is to develop an understanding of how performance
measurement systems function as governance tools in Swedish municipalities under
conditions of uncertainty and ambiguity, with a focus on how PMSs are designed and used to
support control, accountability, learning, and adaptation.

Methodology: The study adopts a qualitative multiple case study design based on three
Swedish municipalities. Empirical material was collected through semi-structured interviews
with strategic, operational, and specialist-level respondents. The material was analyzed
thematically, both within and across cases.

Theoretical perspectives: Uncertainty, Ambiguity, Performance Measurement Systems,
Simons’ LOC Framework, Institutional Theory

Empirical foundation: The empirical foundation consists of interviews with municipal
respondents. The cases provide insight into how municipalities with differing local conditions
and size perceive and manage uncertainty.

Conclusions: The study shows that uncertainty in Swedish municipalities is both external
and internal, involving changing external conditions as well as ambiguity in goals and
priorities. PMSs are designed as hybrid systems that combine indicators, targets, qualitative
assessments, and contextual judgment. They are used diagnostically for control,
accountability, and follow-up, but also learning, dialogue, and adaptation. The findings also
show that institutional pressure influences PMS design and use through comparison, legal
requirements, networks, and expectations of legitimacy (Less)
Please use this url to cite or link to this publication:
author
Olsson, Melker LU and Selde, Mattias LU
supervisor
organization
course
BUSN79 20261
year
type
H1 - Master's Degree (One Year)
subject
keywords
Uncertainty, Ambiguity, Performance Measurement Systems, Swedish Municipalities, Simons' Levers of Control
language
English
id
9242134
date added to LUP
2026-07-01 12:49:25
date last changed
2026-07-01 12:49:25
@misc{9242134,
  abstract     = {{Seminar date: 2026-06-02

Course: BUSN79 Degree Project in Accounting & Finance, 15 credits

Authors: Melker Olsson and Mattias Selde

Advisor/Examiner: Anders Anell / Elin Funck

Five key words: Uncertainty, Ambiguity, Performance Measurement Systems, Swedish
Municipalities, Simons’ Levers of Control

Purpose: The purpose of this study is to develop an understanding of how performance
measurement systems function as governance tools in Swedish municipalities under
conditions of uncertainty and ambiguity, with a focus on how PMSs are designed and used to
support control, accountability, learning, and adaptation.

Methodology: The study adopts a qualitative multiple case study design based on three
Swedish municipalities. Empirical material was collected through semi-structured interviews
with strategic, operational, and specialist-level respondents. The material was analyzed
thematically, both within and across cases.

Theoretical perspectives: Uncertainty, Ambiguity, Performance Measurement Systems,
Simons’ LOC Framework, Institutional Theory

Empirical foundation: The empirical foundation consists of interviews with municipal
respondents. The cases provide insight into how municipalities with differing local conditions
and size perceive and manage uncertainty.

Conclusions: The study shows that uncertainty in Swedish municipalities is both external
and internal, involving changing external conditions as well as ambiguity in goals and
priorities. PMSs are designed as hybrid systems that combine indicators, targets, qualitative
assessments, and contextual judgment. They are used diagnostically for control,
accountability, and follow-up, but also learning, dialogue, and adaptation. The findings also
show that institutional pressure influences PMS design and use through comparison, legal
requirements, networks, and expectations of legitimacy}},
  author       = {{Olsson, Melker and Selde, Mattias}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Design and Use of Performance Measurement Systems Under Uncertainty}},
  year         = {{2026}},
}