Key performance factors of manufacturing effective performance: The impact of customers and employees

The objective of this study is to investigate the differences between high and low‐performing manufacturing organizations in relation to critical organizational performance dimensions.

The types and frequency of performance measures used by the sampled manufacturing organizations are compared using factor and cluster analysis.

Based on the results of this study, it appears that high‐performing manufacturing organizations, relative to their low‐performing counterparts, tend to emphasise more the performance aspects related to employees, customers and market share. As such, these organizations appear to consider employees and costumers related performance aspects as critical elements of the overall organizational performance.

The sample used in this study is specific in nature. It consisted of Portuguese manufacturing organizations. Thus, the results should be interpreted accordingly.

This study clearly shows that organizational investments aimed at improving the aspects of organizational performance related to customers, employees and market share are justified.

This study has both practical and theoretical value, as it empirically explores the practical implications of some important issues related to organizational performance.