Current business environment is increasingly competitive and rapidly changing due to internationalization and the advancement of information and communication technologies. In order to identify opportunities from such turbulent environment and respond to them appropriately, many companies are putting effort into developing organizational capabilities. Prior literatures indicate that balanced performance indicator information is used in compensation contracting to properly direct employees'' attention and motivate behavior aligned with organizational goals. Recently, Many researchers have begun expanding the model to include the notion of organizational justice. In today''s competitive business environment, it is well-accepted that organizational justice is critical to strengthen the organizational capabilities.
The aim of this study is to analyze and examine the relationship among balanced performance indicator information, organizational justice and performance. In this study, the two types of organizational justice are used; procedural justice and distributive justice. All of questionnaire items in this study were selected from prior studies, and were measured on five-point Likert-type scale. Data were collected using a questionnaire survey in 404 Korea manufacturers randomly selected from Korea Exchange. A total of 79 useable questionnaires were received, a response rate of 19.8%. PLS method and regression analysis are used for the hypotheses tests.
The major results of this study are as follows. First, the use of balanced performance indicator information is associated with improved performance. Second, the effect of balanced performance indicator information on performance is indirect through the mediating variables of procedural justice. But the mediating effect of distributive justice on relationship between balanced performance indicator information and performance was not existed. The results indicate that the use of balanced performance indicator information influences employees'' perceptions of procedural justice, which, in turn, influences managerial performance.
From these results, in order to improve their managerial performance, many companies should consider the organizational justice, for which a variety of financial and non-financial performance indicator information should be used to build a well-balanced. However, this study has some limitations due to excluding interactional justice and the small sample size etc. Further research may be able to uncover and test the limitations.