The link between the performance measures and competitive strategies: the strategic performance modeling and measuring index

One of the mistakes for a company is to use the wrong set of performance measures for managing and evaluating its value-chain activities while aiming to gain a competitive advantage with a predetermined strategy. The losses due to this mistake may increase under the market conditions of increased uncertainty and rapid change. This study reviews the link between the competitive strategy, production and operations management and performance measures, and proposes the strategic performance modeling and measurement index (SPMMI) for agile competitors as a tool to effectively manage their value-chain activities.