by Wasatorn Shutibhinyo, Wila-sini Wongkaew*

Chulalongkorn University, Thailand

Full Text:  Abstract   This paper examines how firms design and use performance measurement systems to support their strategy. In particular, the study investigate linkages between business strategy (i.e. cost leadership, differentiation and mixed strategy) and relative weights placed on different groups of performance measures and ways in which performance measurement systems are used (i.e. diagnostically or interactively). Drawing on data collected from 93 firms listed in the Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI), the study reveals that 46 out of 93 firms (49.46%) pursue mixed strategy. The results indicate that firms place an emphasis on strategy-consistent performance measures only to certain extent. Overall, high emphasis is placed on financial and market and quality-related measures regardless of their strategy. With regard to the use of performance measurement systems, firms place greater emphasis on diagnostic use of performance measurement systems than on interactive use regardless of their strategy.

Keywords: Performance measurement systems, diagnostic and interactive control, strategy, mixed strategy

Updated:: 22/02/2022 [syazmer]