Research Summary
Research Summary
Performance Measurement and Incentive Alignment
Description
Professor Kulp is interested in how organizations use information to enhance firm performance. The manner in which an organization gathers, analyzes, and uses performance information as part of its internal governance system affects organizational success. Professor Kulp's research focuses on two related questions. First, how do organizations use information and contracting to align the objectives of individual stakeholders of the firm with the overall objectives and strategy of the organization? For example, firms contract with, among others, employees, supply-chain partners, and the capital market. Aligning the interests of thse very different constitutencies with firm strategy is crucial for the long-term performance of the organization. Second, how do companies analyze the success of their strategies and their alignment mechanisms? For example, retailers may decide to delegate their inventory decisions to their manufacturing partners in order to increase their own profits as well as the profits of the entire supply chain. It is important to measure and evaluate the effectiveness of this new initiative.