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Strategy, choice of performance measures, and performance

Van der Stede, Wim ORCID: 0000-0003-3005-2410, Chow, Chee W. and Lin, Thomas W. (2006) Strategy, choice of performance measures, and performance. Behavioral Research in Accounting, 18 (1). pp. 185-205. ISSN 1050-4753

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Identification Number: 10.2308/bria.2006.18.1.185


We examine the relationship between quality‐based manufacturing strategy and the use of different types of performance measures, as well as their separate and joint effects on performance. A key part of our investigation is the distinction between financial and both objective and subjective nonfinancial measures. Our results support the view that performance measurement diversity benefits performance as we find that, regardless of strategy, firms with more extensive performance measurement systems—especially those that include objective and subjective nonfinancial measures—have higher performance. But our findings also partly support the view that the strategy‐measurement “fit” affects performance. We find that firms that emphasize quality in manufacturing use more of both objective and subjective nonfinancial measures. However, there is only a positive effect on performance from pairing a qualitybased manufacturing strategy with extensive use of subjective measures, but not with objective nonfinancial measures.

Item Type: Article
Official URL:
Additional Information: © 2006 American Accounting Association
Divisions: LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce > HF5601 Accounting
Date Deposited: 07 Oct 2008 15:15
Last Modified: 01 Apr 2024 08:14

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