Differentiation strategy, performance measurement systems and organisational performance: Evidence from Australia

Abstract

While there is agreement on the beneficial role of non-financial performance measures in supporting strategic priorities associated with differentiation strategies, equivocal research results have emerged on the role of financial performance measures in this context. Against a background of calls for a more balanced approach to performance measurement systems, this study examines the mediating role of both non-financial and financial performance measures in the relationship between a differentiation strategic orientation and organizational performance. A path-analytical model is adopted using questionnaire data from Australian manufacturing firms. The results indicate that, firstly, firms pu..