This study examines the effect of organization structure and competition on the design
of performance measurement systems (PMSs) and their joint effects on performance. The
design of performance measurement systems is investigated using two dimensions: the
use of integrated measures related to the four perspectives of the balanced scorecard (BSC)
and the stage of development of PMSs. The data for this study were collected from 168
valid responses (25.19%) of Taiwanese firms listed on the Taiwan Stock Exchange. The
results indicate that organization structure is significantly associated with the design of
PMSs. Compared to mechanistic organizations, organic organizations make greater use
of integrated measures and the higher developmental stages of PMSs. The findings also
partly support the presence of joint effects on performance involving organization structure,
competition, and the use of PMSs. Specifically, the results show that when there is
greater competition among firms, a positive relationship between the stages of PMS development
and performance is of higher significance. Another conclusion derived from this
study is that the use of integrated measures is more relevant with respect to organizational
performance in mechanistic organizations than in organic ones.