Integrative Strategic Performance Measurement Systems: Strategy, Strategic Alignment of Manufacturing, Learning and Organizational Performance

Robert H. Chenhall
Monash University

Abstract: This study examines the effects of strategic performance measurement systems (SPMS) on organizational outcomes. A key dimension of SPMS, integrative information, is identified as being instrumental in assisting managers deliver positive organizational outcomes. The model predicts that the influence of integrative SPMS on performance is indirect through the mediating role of success in achieving strategic priorities. An elaboration of the relationship between integrative SPMS and effective strategies is developed which shows that integrative SPMS is associated with an alignment of manufacturing with strategy and with organizational learning, both of which are associated with effective strategies. Data from a survey of 80 strategic business units provides support for the proposed relationships.

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