This paper examines three questions on the value relevance of customer satisfaction measures: (1) Are measures leading indicators accounting performance? (2) Is economic (fully) reflected in contemporaneous book values? And (3) Does release provide new or incremental information to stock market? Many argue that improvements areas such as quality, employee satisfaction, and innovation represent investments firm-specific assets are not fully captured current measures. According these authors,...

This study examines how different types of performance measures were weighted in a subjective balanced scorecard bonus plan adopted by major financial services firm. Drawing upon economic and psychological studies on evaluation compensation criteria, we develop hypotheses regarding the weights placed measures. We find that subjectivity allowed superiors to reduce “balance” awards placing most weight measures, incorporate factors other than evaluations, change criteria from quarter quarter,...

This study examines the impact of product variety on automobile assembly plant performance using data from GM's Wilmington, Delaware plant, together with simulation analyses a more general auto line. We extend prior studies by providing evidence magnitude variety-related production losses, mechanisms through which impacts performance, and effects option bundling labor staffing policies costs variety. The empirical indicate that greater day-to-day variability in content (but not mean per car)...

This paper provides exploratory evidence on the cross-sectional association between process management techniques and two profit measures: return assets sales. Using a sample of firms in industries (automotive computer) four countries (Canada, Germany, Japan, United States), we find that certain improve profitability while others have little effect financial performance. In particular, long-term partnerships with suppliers customers are associated higher performance both industries. The...

This study examines the association between activity‐based costing and manufacturing performance. Results using a cross‐sectional sample of plants indicates that extensive ABC use is associated with higher quality levels greater improvements in cycle time quality, indirectly cost reductions through improvements. However, on average, has no significant return assets. Instead, we find weak evidence accounting profitability contingent plant’s operational characteristics.

This paper examines the association between use of advanced manufacturing practices and choice information reward systems, explores impact these choices on organizational performance. Although such as total quality management (TQMI) have been widely adopted over past decade, surveys indicate that most initiatives not yielded significant economic benefits (e.g., Mathews Katel [1992] The Economist [1992]). Many accounting researchers charge poor performance many new is due in part to continued...

The authors develop and test a simple conceptual model linking product development cycle time to organizational performance. Using data from two industries (automobile computer) four countries (Canada, Germany, Japan, the United States), they find that faster alone is not associated with higher accounting returns, sales growth, or perceived overall Stronger support found for hypothesis some practices, such as cross-functional teams advanced design tools, interact accelerated improve...

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Our paper examines whether supplier selection and monitoring practices affect the association between strategies organizational performance. Management accounting researchers (Atkinson, A., Waterhouse, J., 1996. Strategic Performance Measurement: Scope Implementation Issues; Gietzmann, M.B., Accounting, Organizations Society, 21 (6), 611–626, p. 613) argue that partnerships can enhance cost management efforts by improving product quality, accelerating development process, increasing process...

This study examines the relation between measurement system satisfaction, economic performance, and two general approaches to strategic performance measurement: greater diversity improved alignment with firm strategy value drivers. We find consistent evidence that firms making more extensive use of a broad set financial (particularly) non-financial measures than similar strategies or drivers have higher satisfaction stock market returns. However, we little support for hypothesis less...

This short commentary responds to several issues raised in Zimmerman (2001). We address Zimmerman's criticisms that managerial accounting studies are purely descriptive, conducted without an underlying theory, and unguided by research hypotheses. also discuss our views regarding the importance of practice-oriented for understanding choices testing economic non-economic theories. Finally, we highlight some new directions finance literature, their relevance research.

Using data from a government-wide survey administered by the U.S. General Accounting Office, we examine some of factors influencing development, use, and perceived benefits results-oriented performance measures in government activities. We find that organizational such as top management commitment to use information, decision-making authority, training measurement techniques have significant positive influence on system development use. also technical issues, information problems...

This study examines the determinants of performance measure choices in worker incentive plans. The results indicate that informativeness issues such as those addressed economic theories have a significant effect on measurement choices. However, other reasons for adopting plans, upgrading workforce and linking bonuses to firm's ability pay, also influence choices, do union representation management participation plan design. Moreover, factors influencing use specific measures vary, suggesting...