Journal article

Performance Measurement System Design in Joint Strategy Settings

Anne M Lillis, Paula MG van Veen-Dirks

Journal of Management Accounting Research | American Accounting Association | Published : 2008


ABSTRACT: This study examines empirically the association between joint strategies and the design of manufacturing performance measurement systems. Drawing on data collected from production managers in 84 industrial firms, the study seeks evidence of links between the implementation of differentiation, low-cost and joint strategies in production, and reliance on efficiency, financial, and customer-focused performance measures. The results indicate the paradoxical situation where virtually all units in the sample pursue competitive advantage in differentiation yet many rely intensely on efficiency and financial measures to measure manufacturing performance. Reliance on efficiency measures is ..

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University of Melbourne Researchers