Adopting a levers of control paradigm, Henri [2006] found strong support for the arguments that the diagnostic use of Performance Management Systems (PMS) tends to negatively influence capabilities (innovativeness, organizational learning, market orientation and entrepreneurship) and the interactive use of PMS tends to positively influence capabilities. He also found partial support for the argument that the dynamic tension resulting from a balanced use of PMS in a diagnostic and interactive fashion tends to positively influence capabilities. There was no support for the argument that the diagnostic and interactive use of PMS and the dynamic tension resulting from a balanced use of PMS have an indirect effect on organizational performance.