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2010
The paper reviews the literature in the field of performance measurement and management (PMM) for small and medium enterprises (SMEs) and large companies. The methodology adopted for reviewing the literature relies on the citation/co-citation analysis of research on PMM and on the analysis of the frameworks/models developed in the last twenty years both for large and SMEs. The evolution of the research field is discussed and future areas of research are identified. The results of the literature review carried out reveal a certain maturity of the literature related to large companies and a significant lack of PMM literature for SMEs.
2008
In recent years, performance measurement and management (PMM) has received much attention from researchers and practitioners. Despite the growing use of PMM systems, different problems cause companies to experience difficulty in implementing such systems, with consequent risk of partial benefits or total goal failure. The literature on PMM is nowadays quite vast, but only a ten of models addresses the problem in its entirety and relatively little research addresses to Small and Medium Enterprises (SMEs). Based on a structured literature review of PMM models, factors influencing PMM initiatives in SMEs and milestones for PMM design, the authors provide an evaluation of frameworks today available. Based on the identification of strengths and weakness of these frameworks, the authors propose a new integrated framework for PMM design, which fulfills the identified lacks and optimizes strengths. The framework proposed is a significant contribute to enhance SME application of such a systems.
The paper reviews the literature in the field of performance measurement and management (PMM) for small and medium enterprises (SMEs) and it proposes a framework for PMM system design. The results of the literature review carried out reveal the need for developing real integrated PMM frameworks. Based on such a structured literature review, we propose an integrated framework that rectifies the drawbacks in previous frameworks while incorporating their strengths. The integrated framework proposed is a contribution to enhance SME adoption of PMM systems and provides milestones for PMM system design. Future research would involve an in-depth examination of such milestones to facilitate implementation
Measuring Business …, 2010
This paper proposes and validates a set of requirements specifications for a performance measurement system that would support the adoption of performance management best practices within Small and Medium sized Enterprises. The literature review concludes that characteristics of performance measurement practices currently in use, limit their adoption within an SME environment. In addition, an in-depth multiple case studies create an understanding of the actual state and desired future state of performance measurement practices within SMEs. Based on the literature review and case studies a conceptual model for an ICT enabled performance measurement system was proposed. INTRODUCTION A high number of research studies as well as industrial projects focus on performance management and measurement of logistic and supply chain related activities (Neely 1999; Franco and Bourne, 2003), however research on methods and tools is still lacking behind. As a matter of fact, Schmitz and Platts (200...
Annals of DAAAM for ... & proceedings of the ... International DAAAM Symposium .., 2019
Enterprises search for competitive advantages that leads them to improve their performance. The importance of performance measurement has gained increasing recognition in recent years. Companies have realized the need to effectively measure and monitor the enterprise's performance. Small and medium-sized enterprises (SMEs) have become increasingly important in national and international markets because they contribute to the development of local and national economies. SMEs often face serious challenges when competing with multinational companies. Large corporations have the financial, human capital and expertise to procure and implement complex performance measurement systems and ensure their relevance to the company's shortand long-term goals, Inclusive and effective performance measurement systems are essential for gaining competitive advantage and continuously adapting to the dynamic environment in which SMEs operate. Aim of this paper is to give an overview of the performance measurement methods in SMEs. Based on current research project of authors, it is necessary to recommend a methodology for performance measurement, depending on the research requirements.
Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019), 2019
This study aims to describe the business performance assessment using the application of a tool known as Performance Management Analysis (PMA) for small and medium-sized enterprises in Jember Regency. With this tool, the SMEs can evaluate their business performance based on subjective performance measures. This study uses nine dimensions of PMA as well as studies conducted by the University of Amsterdam. The research sample was determined purposefully by researchers with a consideration of the ease of access available. The average of small and medium-sized enterprises in Jember Regency has given equal attention to the two dimensions measured, namely structural and behavioral dimensions in the performance management system. The average score for all aspects is 3.6 only. On a scale of 1-10, this score shows a situation where the respondent's perception of the use of a performance management scheme in their company has not been running well and optimally. They agreed that the situation should be improved so that the average PMA score could reach 7.3, as expected. Therefore, the results of the analysis show that small and medium-sized enterprises need to get additional clear insights about the fields that need attention to develop their business. The results of this study also provide information about the relationship between business managers and the application of a performance management scheme in each business entity which can encourage positive behavior of business people based on the results of their performance analysis and the consequences that can be felt to improve business performance.
Asian Journal of Accounting and Governance
The purpose of this paper is to examine the attributes of Performance Measurement Systems (PMS) of the Malaysian Small Medium Enterprises (SMEs), from an organizational life-cycle perspective. It was suggested that PMS is less comprehensive at birth stage, most comprehensive in the growth stage and decrease at the maturity stage of the life-cycle. The more comprehensive use of PMS is expected to be associated with higher organizational performance. Survey questionnaires were administered to managers yielding 90 usable responses. Using cluster analysis, SMEs were categorized into birth, growth and maturity stages. The findings support the hypotheses and thereby provide evidence on the variations of PMS attributes among SMEs across the life cycle stages. The study contributes to knowledge on internal consistencies between organizational factors at each organizational life-cycle stages that has implications for management control systems. To the practice, it provides evidence on organizational adaptations to changes in firm's strategy and structure.
2016
Purposeto examine and evaluate the application of performance measurement (PM) practices and systems within manufacturing SMEs in Northern Nigeria in order to develop an original performance measurement framework that can be effectively applied to support firms in achieving their business objectives. Design/Methodology/Approach-This study first carried out a review of literature from 1994-2013. Covering a period of 19 years was selected for effective scrutiny of the current and past SMEs' performance as a point of synthesis. It subsequently presents an empirical case study carried out in Northern Nigeria from survey and interview questionnaires with the SMEs' owners and managers within this region. Findings-The findings indicate the importance of SMEs using PM (Performance Measurement) Systems to measure and improve business performance. Based on the analysed data from the survey and interviews conducted, the results suggest that some SMEs used PM Systems to measure business performance and set-out objectives while many do not for various reasons. The results linked with earlier findings from the reviewed literature and shed more light into why many SMEs in Nigeria failed after few years. The data also revealed many of the SMEs do not have or use any kind model or framework within their business to monitor business performance and set objectives, and some do not have the resources such as expertise and knowledge for PM System implementation management. These disclosures and the review of available performance model/framework led researcher to develop a simplistic performance framework for the SMEs to measure and improve business performance. The research finished with recommendation for SMEs managers and owners. Originality/Value-Though a lot has been written on SMEs' performance measures and management, many of those publications and investigations are centred on developed economies such as America and UK; few studies have been conducted in Africa and the sub-Saharan region to rigorously outline some of the key factors that impact SMEs' growth in that region. In that context, this study provides realistic evidence regarding SMEs' performance measurement practices, systems, models management within the research location. The results provide evidence and reasons for SME failures and offer strategic direction for SMEs' improvement and growth with the newly developed model.
The purpose of this study is to observe the integrated performance measurement system (IPMS) based on the perspective of Small and Medium Enterprises (SMEs). Building on the upper echelons perspective, the study investigates the role of SME entrepreneurs/top management leadership in determining the implementation of IPMS to assist them in making decisions. IPMS is a useful managerial tool for measuring and improving the decision-making and control process among the SMEs. Our results, based on a survey administered to 90 SMEs, reveal that leadership style has no direct effect on the IPMS practice. Instead, the decision-making style mediates the relationship between the leadership style and IPMS. Regardless of the different leadership styles, we find that a comprehensive decision approach is the way of making decisions that emphasize the integration between financial and nonfinancial measures, and between internal and external factors.
Proceedings of the 8th WSEAS …, 2009
— In Morocco, Small and Medium Sized Enterprises (SMEs) form the backbone of the private sector. They represent more than 95% of the Moroccan economy. However, most of them operate in a fierce competitive environment. This is why, it is important to optimize their business practices. The literature highlights the important role of performance measurement systems (PMS) in the development of the SMEs. However, PMS adoption in the Moroccan SMEs is a subject about which little is known due to the lack of research. This paper aims at presenting the theoretical framework for investigating PMS adoption in the Moroccan SMEs. To do this, a review of the literature on the performance measurement concept is presented. Then, the Moroccan Small and Medium Sized Enterprises are described. Finally, the theoretical framework of the study is identified and our choice is justified. Different classifications of PMS adoption in the Moroccan SME are suggested in the light of the typology presented by Garengo " Garengo's classification " .
Benchmarking: An International Journal, 2011
PurposeThe purpose of this paper is to offer small to medium‐sized organizations (SMOs) with global business aspirations an innovative approach to performance measurement and management.Design/methodology/approachThe first phase of this research is based on a literature review. The second phase capitalizes on the literature review to offer a conceptual framework aimed at improving the performance measurement approach utilized by SMOs. The advocated approach stresses performance measurement, benchmarking, and effective implementation.FindingsThe conceptual approach offered in this study represents the main outcome of this applied research. The advocated approach integrates several frameworks in an effort to address practical concerns related to performance measurement, management, and improvement.Research limitations/implicationsThe research offered in this study has practical and theoretical implications. The proposed approach offered by this study should be refined and validated th...
International Journal of Globalisation and Small Business 2(4), 2008
A literature review of Performance Measurement Systems (PMS) in Small-and Medium-sized Enterprises (SMEs) shows that the main contributions focus on the development of theoretical models, but not on guidelines for practical implementation. In this context, an important neglected aspect is the general fitness or readiness of a SME to implement a PMS. Therefore, the aim of this paper is to determine critical prerequisites for a successful PMS implementation in SMEs. For this purpose, a case study in a German SME was conducted. The findings indicate that the existence of specific contingency factors-Corporate Strategy, software-based Enterprise Resource Planning (ERP) and Activity Based Costing (ABC)-strongly supports the successful implementation of a PMS and its later use. Hence, further research shall include these prerequisites as new variables determining the PMS process. Based on that, researchers and managers of SMEs can develop individual indicators to identify their own PMS readiness.
Nowadays, within a globalized market and increase need to remain competitive, organizations and their stakeholders need to excel along all dimensions in performance (Neely et al., 2002). Several managerial system models like quality management systems (QMSs) are used for improving performance and promoting productivity in organizations. The decision after planning, designing and implementing each of these performance models for organization performance evaluation and measurement is the fact that shows to what extent the organization has achieved pre-designed strategies and goals. Simultaneously, this new system has been effective in improving organizational performance. At this stage, performance measurement (PM) is one of the principal functions of organizations. However, existing performance measurement systems (PMSs) hold weak points, specifically in the QMS. The accuracy of the outcomes achieved through QMS will be objected to hesitation. So PMSs are considered as a means to gain competitive advantages and continuously react and adapt to external changes (Cocca and Alberti, 2008). According to Kennerley and Neely (2002), organizations need to have systematic processes in assessing and monitoring their PMS. Garengo and Bernardi (2007) state that the lack of resource and managerial expertise becomes a main criterion continuously excelling in the market and indeed organizations have to be extremely flexible and reactive to market changes. A strong concentration of literature has been mainly on large enterprises and lacks suitability of its application on SMEs (Cassell et al., 2001). Similarly, performance measurement (PM) is less discussed in SMEs (Garengo and Bernardi, 2007) and been confirmed by the gap between theory and practice observed by numerous authors in SME (Hudson et al., 2001, Sousa et al., 2006, Cocca and Alberti, 2008)
Production Planning & Control, 2001
Research has demonstrated that the use of performance measures in SMEs (small to medium sized enterprises) is limited. Financial measures, which are required for examination by external stakeholders, are generally well developed. However, operational measures are typically ad hoc and lack formal structure. A structured approach to measuring perform-ance in SMEs should improve strategic control. Current approaches, however, have proved inadequate for the speci c requirements of the SME sector. A new process is presented for developing e ¶ ective performance measurement in SMEs, which is tested through a case study. The aim of the process is to develop measures that drive operational performance towards the achievement of strategic objectives. The results of the case study demonstrate the potential of the process for improving strategic control and stimulating continuous improvement in SMEs.
2016
There is no single over reaching model to measure the performance of small scale enterprises perhaps due to multi-dimensional aspects of performance. Consequently, performance can be measured using various tools depending up on the objectives that firm pursue. More specifically, hybrid measures (financial and non-financial measures) of performance is widely recommended tools by most scholars to incorporate its multi-dimensional aspect and to overcome a pitfalls of single measure of
Market Forces, 2014
Measuring organizational performance is an important issue in today's research scenario. The researchers use different approaches and measures in evaluating organizational performance. Researchers do not have consensus on the measures to be used for measuring organizational performance. The literature shows that both subjective and objective measures can be used to evaluate the performance of organizations of small and medium enterprises (SMEs). This paper based on the measures used in previous researches have recommended measures for measuring the organizational performance.
Benchmarking: An International Journal, 2011
2011) "A systematic benchmarking perspective on performance management of global small to medium-sized organizations: An implementation-based approach"PhD in Industrial Management from the Clemson University, and he is a Professor of Management at East Tennessee State University. His research has appeared in journals, such as Journal of Operations Management, OMEGA, Int. J. Production and Operations Management and Business Research. He currently serves on several editorial boards. He is the recipient of several teaching and research awards and recognitions.
internationalconference.com.my
Economy & Business Journal, 2019
Purpose – The purpose of this paper is to review extant literature in the field of performance measurement. The analysis covers study trends and development of scientific research on performance measurement as well as reveal resources with high impact Design/methodology/approach – The study consists of a systematic review of peer-reviewed articles conducted for ten-year period 2009-2018 This paper provides an update of Neely’s work ‘‘The evolution of performance measurement research’’ and Paolo Taticchi, Flavio Tonelli and Luca Cagnazzo “Performance measurement and management: a literature review and a research agenda”. Citation/co-citation analysis has been used to explore ‘‘performance measurement’’ (PM) literature, while a chronological review or science mapping of main frameworks is presented to explore developments in the field globally. The applied investigation methods were chosen based on the analysis of existing scientometric data: the number and dynamics of published docum...
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