The roles of degree of competition and types of business strategies in adopting multiple performance measurement practices: some reflections from Bangladesh

Aim – This empirical study explores the association between competition, business strategy, and the uses of a multiple performance measurement system in Bangladesh manufacturing firms. Design/methodology – The study uses a questionnaire survey of 50 manufacturing companies. Data were analyzed using multiple regression analysis and other descriptive statistics. Findings – The results suggest that greater emphasis on multiple measures for performance evaluation is associated with businesses that are facing high competition. The practices of multiple performance measures are also significantly related to the types of business strategy being followed. Specifically, firms pursuing a prospector strategy have relied more on multiple performance measures to rate business performance than the firms pursuing a defender strategy. Practical implications – The article notes that the designers of performance measurement systems need to consider contingent factors that affect an organizations’ control system. Originality/value – Substantiating the connection between contingent variables and the use of multiple performance measures in manufacturing firms facilitate a better acceptance of firms’ tendency toward new measurement tools. The study contributes to the performance measurement and contingency literature since it presents empirical evidence of the state of multiple performance measures with organizational contingent variables using a developing country's manufacturing sector data.