A paper co-authored by Ranjani Krishnan, Plante and Moran Teaching Fellow and professor of accounting and information systems, was selected as a co-winner of the 2013 Journal of Management Accounting Research Best Paper Award. “The Role of Performance Measure Noise in Mediating the Relation between Task Complexity and Outsourcing” was published in the journal in 2010 with co-authors Ge Bai (PhD Accounting ’12) and Freddy Coronado (PhD Accounting ’08).
The paper examines the effect of task complexity on a firm’s decision to outsource and the mediating role of performance measure noise. Using insights from agency and transaction cost economics theories, the authors postulate that task complexity reduces the extent of outsourcing of the task. They further predict that one reason for the negative relation between task complexity and outsourcing is that task complexity increases the noise in performance measures. Noisy performance measures introduce problems in incentive contracting with external vendors and, hence, decrease the extent of outsourcing.
Professor Krishnan teaches PIM 812, a second-year Weekend MBA course on Managerial Accounting. This course is designed to introduce what and how accounting data is used to make managerial decisions. Topics include accounting information for decision making and control, cost behavior patterns, activity-based costing, cost allocation, budgeting, transfer pricing, and accounting controls.
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