450 research outputs found
Performance management process in SMEs: a maturity model based on literature and practice
No full textIn the last 30 years, many studies have been carried out on performance management. In particular, Performance Measurement System (PMS) has been investigated in detail as the key system that is able to track the performance of an organization, supporting internal and external communication of results, helping managers with both tactical and strategic decision-making and facilitating organizational learning (Wettstein and Kueng, 2002). Models and methodologies for PMS design and implementation have been proposed (Bititci et al., 1997; Bourne et al., 2000; Flapper et al., 1996; Kaplan and Norton, 1996; Medori and Steeple, 2000; Neely et al., 1996; Thakkar et al., 2007) and empirical investigations have proved the relevance of performance measurement to improve organisations’ results. However, until now, little attention has been paid to the maturity of the performance management process in SMEs, i.e. how measures are used to manage the performance of SMEs.
The overall aim of the research presented in this paper was to develop a better understanding of how measures are used to manage the performance of SMEs
Towards a contingency approach to performance measurement: an empirical study in Scottish SMEs
Full text linkThe literature emphasizes the important role performance measurement systems (PMS) play in supporting organizational development in small and medium enterprises (SMEs). However, there are very few empirical and theoretical studies on the factors that influence performance measurement practices in SMEs. This paper aims to contribute to filling this gap using both theoretical and empirical approaches. A literature review and interviews were used to identify four key contingency factors for PMS in SMEs. A qualitative research design involving a multiple case study methodology was carried out to investigate how these factors influence performance measurement. The relationship between the contingency factors and performance measurement were formalized in four theoretical propositions. First corporate governance structure is one of the main factors influencing performance measurement adoption and use. Second, advanced information practices and advanced behaviours on the part of the people involved appear to be a necessary condition for the effective implementation and use of PMS in SMEs. Third, a change in a firm's business model seems to lead to the development of an improved PMS. Finally, the successful implementation of a PMS seems to be driven by an authoritative management style. Contingency factors were studied independently. Future research might investigate how these factors collectively influence performance measurement practices to make interdependence more explicit. The theoretical propositions provide useful knowledge for defining a methodology and managerial tool to support performance measurement in SMEs. This paper defines key contingency factors influencing performance measurement in SMEs; it contributes to clarifying how these factors could influence performance measurement practices in companies
An Empirical Evidence on Future of Performance Measurement & Management (PMM)
Full text linkAs we are moving into the 21st century, there is an increasing belief that rate of change in the world is set to increase further both in scope and magnitude coming from unexpected directions (e.g. Weick, 1995; Hammer, 2001; Kotter & Cohen, 2002). While the change is fuelled by rapidly developing technologies (such as ICT platforms), increasing globalization and dismantling of trade barriers, issues such as global warming, environmental considerations and the sustainability of our planet are becoming key concerns for everyone. Based on these emerging trends, Bititci et al. (2012) conducted a review identifying ten grand challenges for the future of performance measurement. However, from a practitioner point of view it is not clear how these trends impact on their PMM practices.
Hence, the overall aim of this paper is to empirically explore how the PMM practices of organisations responding these trends are being impacted. While our study was inspired by the challenges identified by Bititci et al (2012), the our purpose is to conduct an exploratory investigation from the context of emerging business trends. In this paper, we first review the emerging business trends from a performance measurement and management perspective and identify five significant trends for further exploration. These trends are: (1) collaboration and networks; (2) multicultural aspects; (3) servitization; (4) sustainability & CSR and (5) innovation and knowledge based workforce. We then outline our empirical method based on inductive case studies with four different organisatio
Performance measurement : challenges for tomorrow
No full textThis paper demonstrates that the context within which performance measurement is used is changing. The key questions posed are: Is performance measurement ready for the emerging context? What are the gaps in our knowledge? and Which lines of enquiry do we need to pursue? A literature synthesis conducted by a team of multidisciplinary researchers charts the evolution of the performance-measurement literature and identifies that the literature largely follows the emerging business and global trends. The ensuing discussion introduces the currently emerging and predicted future trends and explores how current knowledge on performance measurement may deal with the emerging context. This results in identification of specific challenges for performance measurement within a holistic systems-based framework. The principle limitation of the paper is that it covers a broad literature base without in-depth analysis of a particular aspect of performance measurement. However, this weakness is also the strength of the paper. What is perhaps most significant is that there is a need for rethinking how we research the field of performance measurement by taking a holistic systems-based approach, recognizing the integrated and concurrent nature of challenges that the practitioners, and consequently the field, face
Performance Measurement in Small and Medium Enterprises: An Empirical Study in Scottish Companies
No full textHow to compare performances of firms operating in different sectors?
Full text linkThis paper seeks to address the question ‘How to measure different SMEs’ performances comparatively?’ An initial review reveals that the literature does not provide objective and explicit debate on the subject. Consequently, an approach is developed, informed by the literature, which is used to compare the performances of 37 SMEs. The consistency and reliability of the approach is tested, resulting in a ranking of the 37 firms according to their performances. Using cluster and factor analysis the paper demonstrates that leading indicators are somewhat redundant, and that lagging indicators have greater significance for the purpose of comparative measurement of different SMEs performances. Whilst the approach adopted here withstood internal and external validity tests and can be seen as a robust way of comparing SMEs performances, these results may be limited to this study
Performance measurement systems in SMEs : diffusion, characteristics and models
Full text linkThis paper discusses performance measurement systems in small and medium sized enterprises. It was presented at the annual conference of the British Association of Management in 2004
Impact of visual performance management systems on the performance management practices of organisations
No full textThe purpose of this paper was to explore how visual strategy and performance management techniques impact performance measurement and management practices of organisations. A novel visual performance management approach is developed and implemented in qualitative case studies with seven manufacturing SMEs across Europe. The implementation cases demonstrate that visual management systems serve to support ongoing strategy development and implementation, facilitate performance measurement and review, enable people engagement, improve internal and external communication, enhance collaboration and integration, support the development of a continuous improvement culture and foster innovation. Additional explorative and longitudinal research is required to understand the long-term impact of such approaches in both small and larger organisations.</p
Maintaining reliability of business processes using active monitoring techniques
No full textThis paper introduces the concept of active monitoring of business processes to enable a business to continually satisfy key stakeholder requirements with fewer people. A case study is used to illustrate how a chemical company improved and maintained the reliability of key business processes by using active monitoring techniques
Performance measurement systems in SMEs : a review and a research agenda
No full textIn recent years, literature has identified the increasing complexity of small and medium-sized enterprises (SMEs) and highlighted their sensitivity to differences in managerial culture and management systems. Research has shown that performance measurement systems (PMSs) could play an important role in supporting managerial development in these companies. In this paper, the literature on performance measurement in manufacturing SMEs is reviewed and the diffusion, characteristics and determinants of performance measurement in SMEs are analysed. Shortcomings in the performance measurement systems are highlighted and the many factors that seem to constrain PMSs in manufacturing SMEs are defined, e.g. lack of financial and human resources, wrong perception of the benefits of PMS implementation, short-term strategic planning. Moreover, using dimensions defined according to the information found in the literature, two PMS models specifically developed for SMEs are compared with generic PMS models. The comparison points out an evolution in PMS models over time; in particular, the models developed in the last 20 years are more horizontal, process-oriented and focus on stakeholder needs. However, it is not clear whether these changes are due to the evolution of the generic models or an attempt to introduce models suited to the needs of SMEs. To clarify this matter and better to understand PMSs in SMEs, further theoretical and empirical studies are necessary. The main issues still requiring investigation are listed in a research agenda at the end of the paper
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