An Empirical Investigation of Manufacturing Performance Measures Utilization: The Perspectives of Executives and Financial Analysts

Document Type

Article

Publication Date

3-20-2007

Description

Purpose – The objective of this study is to shed some light on the information flow between executives and financial analysts in the context of manufacturing performance measurement and evaluation. Design/methodology/approach – The predictive value, information availability and frequency of performance measures used by the sampled manufacturing organizations and financial analysts are compared using multiple regression analysis. Findings – The findings of this study clearly underscore the increasing significance of non-financial and non-traditional performance measures. The importance of customer-based and quality-related measures is noted. Research limitations/implications – The sample used in this study is specific in nature. It consisted of Portuguese manufacturing organizations and Portuguese financial analysts. Thus, the results should be interpreted accordingly. Practical implications – The findings of this study have clear implications for organizational information systems. Re-engineering of organizational information systems is called for toward closing the information gaps which exist in the context of organizational performance measurement. Originality/value – This study has both practical and theoretical value, as it empirically explores the practical implications of some important issues related to organizational performance.

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