An empirical study of the performance paradox among Japanese firms

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The paradoxical model of performance implies that organizational control is maintained by not knowing exactly what performance is. This study examined the performance paradox among Japanese firms from the levels of both macro and micro. Initially, the changes in importance of performance indices were analyzed using a press accounts database. As a result, a paradoxical state of performance indices was found to a certain degree. Secondly, a comparative investigation of performance indices between failed and non-failed companies was conducted using security reports. The results showed that the paradoxical model of performance was not confirmed because significant differences were not found in performance indices used by two sets of firms.