Using survey data from manufacturing managers of 128 firms, this study empirically examines the extent to which firms combine financial, quantitative nonfinancial, and subjective performance measures. Both the relative use of measure types and specific measures within each type are found to vary with the companies’ manufacturing strategies. This supports claims that the three types of measures play different roles in supporting a firm’s operations. A related finding is that the measure types have different impacts on important employee actions, such as risk taking, efforts at innovation, relative emphases on the short vs. long term, and the propensity to game the performance evaluation system.
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