Against a backg~ound of a customization imperative embraced by manufacturing firms in industrialized nations
and the concomitant call for more balanced performance measurement systems (PMS), this study examines the
mediating role of both non-financial and financial performance measures in the relationship between a firm's
strateBc orientation of flexible manufacturing and organizational performance. A path-analytical model is adopted
using questionnaire data from Australian manufacturing firms. The results indicate that, firstly. firms emphasizing
a flexible manufacturing strategy utilize non-financial as well as financial performance measures; secondly, both
these performance measures are associated with higher organizational performance; and thrdly, there is a positive
association between a firm's strategc emphasis on flexible manufacturing and organization performance via nonfinancial
and financial performance measures. This study underscores the importance of botj~n on-financial and
financial performance measures for firms pursuing customizauon type strategies and adds to our knowledge of
PMSs by exploring the intervening role of such'systems in the linlung flexible manufacturing strategy to
organization performance