Table 5 (Panel A) shows the results of the logit model.22 The chi-square is 23.3546 (p < 0.01), which
rejects the null hypothesis that the coefficients are simultaneously equal to zero.23 The coefficient on
HCAP is in the expected direction and significant (p < 0.10); thus there is support for H1. This result
indicates that the use of non-financial measures is increasing in labor intensity. A key organizational
tension is the trade-off between short-term profitability and long-term strategic health of the organization
(Simons, 2000). This result supports the notion that performance measures are used in incentive schemes
to force top executives’ attention on the underlying strategic forces necessary for the long-term health of
the organization (Kaplan and Norton, 1996).