2009 Volume 17 Issue 1 Pages 39-55
The purpose of this article is to investigate the relationship between performance measurement system and financial performance in decentralized organization. A questionnaire survey was mail-administered with 3,245 decentralized units listed on the First Section of the Tokyo Stock Exchange and data has been collected from 307 units. The models were examined by confirmatory factor analysis. The result revealed that the units which use not only formal information with financial & non-financial performance measures, but also informal information showed significantly higher scores in financial performance. The conclusion is that informal information plays an important role in successful performance measurement system.
