The Effect of Performance Measurement Systems on Productive Performance: An Empirical Study of Italian Manufacturing Firms

37 Pages Posted: 23 Oct 2015

See all articles by Hankyul Oh

Hankyul Oh

Texas A&M University - College of Engineering

Andrew L Johnson

Texas A&M University

Lorenzo Lucianetti

University of Chieti and Pescara

Seokjun Youn

University of Arizona - Eller College of Management

Date Written: October 21, 2015

Abstract

Performance Measurement Systems (PMS) are widely used, yet the evidence for their effect on productivity is still limited. We gather survey data describing the use of PMS by 246 manufacturing firms in Italy and match it with financial data for the study period 2003-2012. We develop a PMS score to aggregate the survey information and quantify how well a firm implemented and used PMS. We find that multinational firms are more productive than firms that only operate domestically, and that overall, the Italian manufacturing industry exhibits decreasing returns-to-scale. Further, we find many mature firms in the industry and that endogenous growth will likely lead to reduce productivity. We conclude that higher quality PMS positively and significantly correlates with higher productivity.

Keywords: Performance Measurement System (PMS), Productivity Analysis, Italian Manufacturing

JEL Classification: C14, C61, C83, D24, L11

Suggested Citation

Oh, Hankyul and Johnson, Andrew L and Lucianetti, Lorenzo and Youn, Seokjun, The Effect of Performance Measurement Systems on Productive Performance: An Empirical Study of Italian Manufacturing Firms (October 21, 2015). Available at SSRN: https://ssrn.com/abstract=2677354 or http://dx.doi.org/10.2139/ssrn.2677354

Hankyul Oh

Texas A&M University - College of Engineering ( email )

College Station, TX 77843-3126
United States

Andrew L Johnson (Contact Author)

Texas A&M University ( email )

4033 Emerging Technologies Building
College Station, Texas 77843-3131
College Station, TX 77843-4353
United States

HOME PAGE: http://www.andyjohnson.guru

Lorenzo Lucianetti

University of Chieti and Pescara ( email )

Viale Pindaro 42
Pescara, 65127
Italy

Seokjun Youn

University of Arizona - Eller College of Management ( email )

1130 E Helen St., McClelland Hall 430CC
Tucson, AZ 85721
United States
5206260493 (Phone)
85721 (Fax)

HOME PAGE: http://https://eller.arizona.edu/people/seokjun-youn

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