Alignment Between Performance Metrics And Business Strategy: Does It Impact Organizational Performance?
This study establishes that a certain type of performance metrics (operational/financial or strategic/relational) is more suitable for pursuing a particular business strategy— prospector/reactor. Using data from 372 organizations, we test hypotheses about the relationships between types of performance metrics emphasized and 1) structural variables, such as organization size and nature of the organization—manufacturing/service and multinational/domestic) and 2) the type of business strategy pursued. We also investigate the overall organizational performance impact of the fit between the types of performance metrics utilized and the business strategy pursued.
Kathuria, R. and Lucianetti, L. "Alignment Between Performance Metrics And Business Strategy: Does It Impact Organizational Performance?," Presented at and published in the proceedings of the 19th Annual Conference of the Asia-Pacific Decision Sciences Institute (APDSI) held in Yokohama, Japan, July 18-22, 2014, pp.1-6.
Decision Sciences Institute