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Aligning Performance Metrics With Business Strategy, Ravi Kathuria, Lorenzo Lucianetti
Aligning Performance Metrics With Business Strategy, Ravi Kathuria, Lorenzo Lucianetti
Business Faculty Articles and Research
Purpose
This study examines whether different strategy archetypes deploy specific performance metrics to support their strategic goals and priorities. If so, does alignment of strategy and metrics positively impact organisational performance?
Design/methodology/approach
The conceptual framework and hypotheses are couched in Contingency Theory. The role of business strategy as a moderating variable is tested using MANOVA, followed by post hoc pairwise comparisons. The results are based on cross-sectional survey data from 372 manufacturing and service organisations in Italy.
Findings
The overall contingency effect of business strategy in selecting and deploying performance metrics and their effect on organisational performance is supported. …