We examine how employees respond to bonuses and penalties using a proprietary data set from an electronic chip manufacturer in China. First, we examine the relative effects of bonuses and penalties and observe a stronger effect on subsequent effort and performance for penalties than for bonuses....

Numerous studies in developed Western countries have shown that firms' strategic choices are responsive to attributes of their external environment. In turn, performance-measurement systems are used to support strategy implementation, which then affect firm performance. However, institutional...

We examine the relationship between quality-based manufacturing strategy and the use of different types of performance measures, as well as their separate and joint effects on performance. A key part of our investigation is the distinction between financial and both objective and subjective...