Contingencies, performance measure diversity and firm performance

Abstract

Balanced and comprehensive approaches for measuring business performance have been attracting scholarly and practitioners' attention for more than three decades. Scholars almost equivocally advocate that performance measurement system should be designed to capture internal and external context of the organization. Using a contingency-based approach, we explored the relation between the internal and external contingency variables, performance measurement and business performance of manufacturing companies in Serbia. The results indicate that size and technology are paramount determinants of the performance measurement diversity.