The main purpose of this paper is to develop a conceptual framework for understanding the
literature on the consequences of contemporary performance measurement (CPM) systems
and the theories that explain these consequences. The framework is based on an in-depth
review of 76 empirical studies published in high-quality academic journals in the areas
of accounting, operations, and strategy. The framework classifies the consequences of CPM
into three categories: people’s behaviour, organizational capabilities, and performance consequences.
This paper discusses our current knowledge on the impact of CPM, highlighting
inconsistencies and gaps as well as providing direction for future research.