Title

The Dimensionality and Utilization of Performance Measures in a Manufacturing Operational Context: Organizational Change Implications

Document Type

Article

Publication Date

10-30-2007

Description

Purpose – Owing to the increasing competitive pressures in the marketplace in recent years, the different facets of performance measures and measurement have changed. In this context, the lack of a clear understanding of the dimensionality of manufacturing performance tends to negatively impact successful implementation and utilization of manufacturing performance measurement systems. The purpose of this paper is to investigate the dimensionality of performance and its effective utilization in a manufacturing operational context. Design/methodology/approach – Using a sample of 92 Portuguese manufacturing executives, this study investigates the dimensionality of manufacturing performance and its associated current utilization practices. Factor analysis and cluster analysis are used to analyze data collected on 63 performance measures. Findings – Based on the results of this study, a conceptual framework is advanced. The framework is intended as an aid to manufacturing organizations in their efforts to modify their patterns of utilization of performance measures in order to be more consistent with the emerging changes and challenges of the global marketplace. Research limitations/implications – The sample used in this study is specific in nature (Portuguese manufacturing organizations). Thus the results should be interpreted accordingly. Practical implications – Based on the results of this study, some important organizational implications regarding the practices related to performance measurement in the manufacturing environment are identified. Originality/value – This study empirically examined the manufacturing Portuguese executives’ opinions regarding the dimensionality and utilizations of performance measures. In this context, this investigation contributes to the understanding of the implementation and utilization of performance measures and measurement systems.

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