DOI: 10.5176/2251-3426_THoR17.48

Authors: Belaynesh Teklay, Yun Shen, Kevin Dow, Jeffery Wong

Abstract: Performance measures provide information about past performance to enable managers to identify existing “capabilities”, while forward-looking performance information helps managers explore potential capabilities [1, 2]. Numerous studies have investigated the relationship between nonfinancial and financial performance measures [3-6]. Nevertheless, these studies tend to focus on examining the relationship between one nonfinancial measure in isolation with another financial measure [7]. While these studies provide valuable insights into the contemporaneous and temporal relationship between nonfinancial and financial performance, they are often criticized for failing to capture the trade-off between various performance measures, which may consequently lead to unreasonable conclusions [8]. We attempt to address this limitation by conducting a simultaneous investigation of the links between productivity, service quality, customer satisfaction, and financial performance in the US Airline industry.

 

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