Performance measurement practices in manufacturing firms revisited

Purpose – Given the increasing emphasis on performance measurement and improvement, the purpose of this paper is to examine the current views of manufacturing executives on key aspects of performance measures. Specifically, this research focuses on current practices related to extent of use, predictive value and availability of information for 63 performance measures. Design/methodology/approach – This study was survey based. The research instrument used to collect the data was constructed based on the literature. Several statistical analysis procedures including regression analysis, cluster analysis and gap analysis are utilized to accomplish the objective of this study. Findings – The results are compared to findings obtained from a previous study, conducted five years ago, to assess any potential changes with regard to the issues studied. The comparison of the findings from both studies revealed some similarities and significant differences attributed to the changing environment. Research limitations/implications – The focus of this study was Portuguese manufacturing organizations. It is quite possible that the findings may or may not hold in a global context. Since this study was survey based, it had all the limitations of survey‐based research. Practical implications – Despite some limitations, this study provides practicing managers with useful information regarding performance measures and measurement practices. It has significant and direct implications to organizational performance information systems. Originality/value – This paper represents an important step toward refining the theory and practice of performance measurement in manufacturing organizational operational context.