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Performance Management Systems and Strategies by Dipak Kumar Bhattacharyya

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PERFORMANCE AND STRATEGY LINKAGE

We have enough literature and research findings on strategy-performance relationships. Primarily, strategy research has its roots in industrial organization (IO) theory. Within Bain (1956) and Mason (1939), the IO framework of industry behaviour, organizational performance, or profitability is seen as a function of the industry structure. Industry characteristics rather than organization-based issues are found to determine firm performance (Barney, 1986). This structure-conduct-performance model from IO and economics has been used in industries with high concentrations and in similar firms (Seth and Thomas, 1994). Some studies, however, have not found a link between strategy and performance (McGee and Thomas, ...

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