A framework of the factors affecting the evolution of performance measurement systems

The path toward successful safety performance measurement

INTRODUCTION

Safety management is widely seen as a key contributor to occupational health and safety (OHS) performance. Performance measurement is an important tool for management in reaching its goals. Safety performance measurement has gained increasing attention in the literature. However, little is known so far of the path towards successful safety performance measurement resulting in better OHS performance.

METHODS

This study analyzes the maturity of safety performance measurement in relation to OHS performance and the role of employee commitment and practices of using performance information in facilitating the performance benefits. The empirical data were gathered with a survey that received 270 responses from five industrial organizations. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the data obtained.

RESULTS

It is found that commitment to performance measurement is the strongest explaining factor of both supervisor and employee OHS performance, while the maturity of performance measurement has a direct effect on supervisor safety performance only.

PRACTICAL APPLICATIONS

The results show how safety performance measurement can be implemented to derive the potential benefits. While managers may benefit directly from advanced performance measures, the wider performance benefits among employees materialize only by using performance measurement properly and committing employees to it.

Employee Satisfaction, Talent Management Practices and Sustainable Competitive Advantage in the Northern Cyprus Hotel Industry

In this study, we have examined talent management practices’ impact on achieving sustainable competitive advantage in five-star hotels located in the TRNC (Turkish Republic of Northern Cyprus) as well as the mediating effect of employee satisfaction. After the questionnaire was tested for validity and reliability, we used bootstrapping, Mplus and SPSS to conduct an analysis using data from 368 employees from 14 five-star hotels located in North Cyprus. The study’s hypotheses were verified through SEM (structural equation modelling). Our results revealed that talent development practices had no effect on the hotels’ SCA, whereas talent practices (identify, engage, manage performance and retain) had a significant and beneficial influence on the hotels’ SCA. Although in most hotels, talent management practices are the responsibility of the human resource management. The measured constructs specifically were employee responses. The findings of this study provide benefits for numerous stakeholders, including hotel and hospitality service industries and the government. Results can be used as a guideline for building more appealing workplaces for employees and to inform the management on how to encourage employees to be committed to a sustainable service in the hotel business. To acquire a better grasp of the organisational limits of talent management policies, it is crucial to further examine the perspectives of employers who may include hotel owners or top managers. Furthermore, future research may expand the sample and include three- and four-star hotels as well.

Development of Risk Index and Risk Governance Index: Application in Indian Public Sector Undertakings

The purpose of the paper is to develop a risk measure in the form of a risk index and a governance index as an indicator of the quality of governance structure. Using the Delphi technique, two indices are developed (risk index and corporate governance index (CGI)); subsequently, using the 10-year (2005–2015) data of top Indian Public Sector Undertakings (PSUs) and diff-GMM regression (to deal with endogeneity), indices have been validated. Though the data set may appear old, it has only been used to test the risk index and analyze the results. Empirical evidence on indices indicates that Indian PSUs have ‘moderate’ risk levels and ample scope for improvement in their governance structure. Further, a positive relation between governance index and returns and negative relation between risk index and returns lend credence to the indices developed in the study. Notably, the governance index appears to be a moderating variable in the relationship between risk and return. It is perhaps the first study to put forth a comprehensive measure of risk to measure risk levels of PSUs and prescribe a measure of the quality of governance structure. While constructing the CGI, certain non-compliances were observed, even in terms of mandatory requirements, such as the proportion of PSUs may take independent directors. The new datasets may further check for compliance and its effect on the results. Such infringements call for stringent penal provisions and better monitoring of PSUs. Further, if the normative frameworks are adhered to as per the study by the Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs (MCA), more effective and efficient decisions with lower risks, and hassle-free management resulting in better return on assets and return on equity.

Performance Prediction of Construction Projects Based on the Causes of Claims: A System Dynamics Approach

Conflict in human relations is unavoidable; therefore, it can occur in construction projects that are full of many human relationships. These conflicts can lead to claims if interlocutors do not agree. The main result of the claims is the delay and overrun of costs in construction projects. Additionally, poor management of claims affects the success of construction projects and their budget and schedule. Moreover, controlling claims ensures the successful completion of construction projects and minimizes delays and disputes. This study sought to improve the project performance by ranking the causes of claims and examining their impacts on Key Performance Indicators (KPI) using the combined AHP-TOPSIS (Analytic Hierarchy Process-Technique for Order of Preference by Similarity to Ideal Solution) method. Given that construction projects are constantly evolving and becoming more complex and have many linear and nonlinear relationships and structures, these projects can be considered as a kind of system dynamics. The system dynamics have been used for nearly four decades to analyze and improve the performance of construction projects. This study attempted to provide a model with a system dynamics approach to predict the performance of construction projects based on the reasons for the claim. In this model, the most important performance indicators, interactions between them, and the relationship of these indicators with the reasons for claiming were simulated. The results showed that delays are the most important reasons for making claims, and they have a great impact on the KPIs such as scheduling, sustainability, customer satisfaction, quality, and team satisfaction, respectively. In the modeling and simulation discussion in this study, the proposed model simulated the dependencies between the KPIs of construction projects and their changes over time and provides a better understanding of how performance indicators interact with each other. Additionally, it can be used as a basis for simulating different management policies to find the best solution to prevent and correct the negative effects of poor performance.

Lean and agile metrics. Literature review and framework for measuring leagile supply chain

Purpose

The aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are identified in the literature and are then combined into a framework that can reflect both agile and lean strategies – the leagile supply strategy.

Design/methodology/approach

This work is based on the systematic literature review. Literature was collected, then lean and agile metrics were extracted, analysed, counted and grouped into the framework. Findings are compared against literature on leagile supply chain.

Findings

Findings indicate that there are sets of metrics specific to lean strategy, such as are process-focused, cost, productivity, inventory and delivery-based metrics, and specific to agile such as flexibility, responsiveness, information sharing and cooperation. There are also metrics common for both strategies; they are related to time, quality and customer satisfaction. Lean measures are tangible and focused on internal processes and products, while agile measures are targeted at external environment.

Practical implications

The framework could be used by practitioners as a starting point for performance system design.

Originality/value

There is a need to stop looking at lean and agile as separate and distinct supply strategies. Results of this research indicate that lean and agile are interlinked, both are focusing on customer satisfaction and quality. Applying a proposed set of metrics enables to design supply chain measurement system that reflects both strategies to measure leagile supply chain. The framework could be used by practitioners as a starting point for performance system design.

The impact of contingency fit on organisational performance: an empirical study

Purpose

The research investigates the effectiveness of the performance measurement alignment approach which claims that measurement diversity (multiple performance measures) should be aligned with organisational contingencies to enhance organisational performance.

Design/methodology/approach

The theoretical framework is contingency theory. The study is an empirical investigation of the indirect relationship between three contextual factors (business strategy, information technology and organisation size) and organisational performance via multiple performance measures. The results are derived from cross-sectional questionnaire survey data from 132 Libyan companies (response rate of 61%). For data analysis, the research uses mediation regression analysis via Preacher and Hayes' (2004) macro.

Findings

There is a significant indirect effect of business strategy and information technology, but not organisation size, on organisational performance. The measurement diversity approach plays a core mediating role in the relationship between the contingencies and organisational performance.

Practical implications

The study helps to provide a better understanding of the usefulness of the fit/match between contingencies and Multiple Performance Measures in improving organisational performance.

Originality/value

The empirical evidence supports the central proposition of contingency theory that there is no universally appropriate performance measurement system which applies equally to all organisations in all circumstances. It also provides evidence relating to non–manufacturing and an emerging market context. This research significantly extends the relevant literature by highlighting the relationship between information technology, multiple performance measures and organisational performance. This study is the first to use Preacher and Hayes' (2004) macro to analyse mediation design in the field of contingency-based performance measurement.

Sustainable Development Economics of Enterprises in the Services Sector Based on Effective Management of Value Streams

The world’s economy has been significantly affected by the ongoing pandemic crisis. Its logical reflection is a deteriorating condition of national and regional economies and their vehicles—enterprises. Negative effects of the crisis have influenced both the manufacturing sector and the services sector, where some segments have been hit fatally. In the corporate sphere in general, including in the services sector, there has been a growing need to change the approach to corporate strategy. The strategy should be generated based on management of value-creating processes with the objective to maximize satisfaction of customers while minimizing costs. This is also the topic of this paper. A representative sample of small and medium enterprises from the services sector have been surveyed about their size, using mathematical statistics and models that have been proposed to maximize profit probability. The objective was to propose models that maximize probability of profit and, at the same time, minimize costs for each combination of value chain activities (input logistics, provision of services, output logistics, marketing and sale, servicing, and other accompanying activities, purchasing material management, science-technical development, human resources management and company infrastructure). The main outcome of this paper is the fact that we have been able to prove the functionality of the tested model, which has demonstrated the growing importance of value stream management in relation to the size of enterprises. Such a universal and structured model provides a practical tool for the definition of economic-financial, investment and personnel policies in enterprises.

Influence of organizational life cycle on performance management design in the software industry

Purpose

This work investigates the influence of the organizational life cycle (OLC) on the performance management system (PMS) design and the performance of projects in Brazilian industries of software development.

Design/methodology/approach

The study employed descriptive statistics and structural equations modeling on the data and information obtained from 115 Brazilian industries of software development with maturity in project management. Data collection was carried out through a survey applied to managers of the organizations mapped and certified by management maturity models Brazilian software process improvement (MPS-BR) or capability maturity model integration (CMMI).

Findings

Results revealed that OLC influences the PMS design dimensions (scope, aggregation and opportunity) and project performance. Regarding effects observed on the performance of projects, only the scope dimension's influence was validated by the analyses, and the other dimensions were not significant considering the investigated sample.

Originality/value

The paper shows evidence of how OLC can influence PMS design and project performance. The analyses can help managers to improve their actions in the PMS design, increasing confidence and generating more robust and sustainable results in the business model.

Single-rating, multi-rating 360° performance management and organizational outcomes: evidence from the UAE

Purpose

This study is an academic attempt to bridge the gap between Western theories and the under-researched non-western contexts by studying the characteristics of traditional and modern performance management systems (PMSs) in the United Arab Emirates (UAE). Drawing on the expectancy theory, this study aims to discuss the significant causal relationship between the implementation of single-rating, multi-rating 360° performance management (PM) and organizational outcomes such as trust, commitment, satisfaction and intention to leave.

Design/methodology/approach

Using the self-reported measures and survey method, data were collected from 439 employees from different organizations across the UAE. Explanatory factor analysis, simple linear regression and multi-group were used to test the proposed conceptual model and examine the mediation and moderation impact.

Findings

The study explored the best-practices attributes of the traditional single-rating, multi-rating 360° PM within a non-western context. This study also provides empirical evidence on the significant role of uncertainty avoidance and power distance orientation as a mediator between the relationship between these PMSs and trust, commitment, job satisfaction and intention to leave. Finally, this paper examined the effect of many demographic variables (such as gender, age, industry type […]) on the relationship between the independent variables and the dependent variables.

Originality/value

This study extends research on PM theories and models. Another important aspect of this study is that its model has been tested on the UAE’s data, an underrepresented geographic region in the management literature. Given all the PM’s positive characteristics, the way that this feedback is viewed and interpreted by employees may be moderated according to the employee’s management level, age, gender and many other demographics.

BUILDING A STRATEGIC PERFORMANCE MANAGEMENT MODEL FOR ENTERPRISES INVESTING TO COASTAL URBAN PROJECTS TOWARD SUSTAINABILITY

In addition to the sustainable development of coastal areas, the success of local corporations investing in coastal urban projects is significantly affected by severe sea level rises and extreme disasters. Investment companies should plan which objectives need to target to reduce uncertainty in the early project stages, track project execution, and assess project output as projects complete the construction phase and start operational activities. To assist enterprises in planning, evaluating, and monitoring project performance aligning with vision and strategy, this study contributes a strategic management tool developed by integrating the Balanced Scorecard (BSC), Analytic Network Process (ANP), and Decision Making Trial and Evaluation Laboratory (DEMATEL) methods. A case study of a well-known investment corporation in Vietnam illustrates the research approach. This research appreciated stakeholder’s satisfaction as the main consequence and human resource as the most prominent cause of coastal urban projects. Furthermore, the proposed model for Vietnam in this study could be referred by other developing countries to facilitate companies to plan, measure, evaluate, and control the organizational performances for the coastal urban project success.

The Implementation of Strategic Management in Greek Hospitality Businesses in Times of Crisis

The aim of this research was to explore the implementation of strategic management approaches in Greek tourism and hospitality businesses during economic crises, in order to further expand our current knowledge of operating in a turbulent environment and embracing novel aspects by linking economic crises with the current literature on the COVID-19 pandemic. This research emphasizes the connection between the strategic management approaches of 131 tourism organizations and hospitality business performance by analyzing entrepreneurs’ opinions and hospitality business markets. The results reveal that a significant percentage of the participants understand and use some strategic management procedures, and some strategy in general, but there is a lack of a concrete strategy for managing the turbulent environment caused by an economic crisis. However, a large percentage of small tourism businesses are completely unaware of strategic management approaches, and their knowledge of implementing a strategy during an economic crisis is limited. The practical implications of this research can act as a navigator of the economic consequences caused by the COVID-19 pandemic.

Performance management practices in humanitarian organisations

Purpose

We examine how design and implementation practices for supply chain performance management that have proven successful in commercial organisations apply to humanitarian organisations (HOs) to guide the process of designing and implementing performance management in humanitarian organisations.

Design/methodology/approach

We identify from the literature ten successful practices regarding the design and implementation of supply chain performance management in commercial businesses. We apply these, using action research over a four-year period, at Médecins sans Frontières (MSF) Belgium and draw conclusions from this.

Findings

We find that tools and techniques, such as workshops and technical sheets, are essential in designing and implementing supply chain performance measurement projects at HOs. Furthermore, making a link to an IT project is crucial when implementing performance measurement systems at HOs. Overall, our case study shows that performance management practices used in business can be applied and are relevant for humanitarian supply chains.

Originality/value

Previous research has argued that there are few empirical studies in the domain of performance management at humanitarian organisations. To the best of our knowledge, this paper is the first to provide a longitudinal understanding of the design and implementation of supply chain performance measurement at HOs.

Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic

This paper presents a method of generating a business strategy using value chain analysis. There were 186 manufacturing and industrial enterprises from the Czech Republic. The analysis was carried out using mathematical–statistical methods (dimensional reduction, logit regression and its transformation in order to objectify the opinion level of the managers) and with a neural network in terms of validation of the results of the mathematical–statistical methods. The aim was to determine the significance of different parts of the value chain in terms of their impact on the profitability of an enterprise and to demonstrate its important role in the process of generating business strategy. The significance for the profitability of the enterprises was statistically proven in the area of scientific and technological development, input logistics and human resource management. These parts were identified by the authors as the golden triangle of manufacturing and industry. Purchasing and output logistics were identified as the parts with a negative impact to the profitability of the enterprises. Strong underestimation of scientific and technological development by the top managers of the manufacturing and industrial enterprises is seen as a very negative finding. Neural networks showed higher statistical sensitivity compared to the mathematical–statistical methods (dimensional reduction and logit regression). They defined the value sector chain with the following structure (ranked from the highest degree of positive impact on the profitability of the enterprise): human resource management, scientific and technological development, production, input logistics, purchasing, material management, output logistics, enterprise infrastructure, marketing and sales, service and other supporting services. In conclusion, it is stated that the sector value chain of manufacturing and industrial enterprises will be further decomposed into value chain models of specific industries of the production and industry, such as engineering and construction, intended for direct use in different business entities to generate their unique value chains and corporate strategies.

How organizational culture influences performance measurement systems in SMEs

Purpose

Literature highlights the impact of culture on managerial processes in general and the performance measurement system (PMS) in particular. However, understanding how organizational culture (OC) influences the PMS remains a challenge, especially in SMEs as in these companies the studies are very limited. The purpose of this paper is to investigate how OC influences PMSs in manufacturing SMEs.

Design/methodology/approach

To achieve the above purpose, a case study approach has been adopted. Four manufacturing SMEs with heterogeneous OC were investigated by means of companies’ documents reviews, participant observations and semi-structured interviews. A conceptual framework based on the competing value framework proposed by Cameron and Quinn (1999) and the PMS typology proposed by Garengo (2009) has been used to investigate the impact of OC on PMS.

Findings

According to the results, OC has a huge impact on PMS in manufacturing SMEs. The dimensions of “internal/external focus” influence strategy formalization, monitoring of the external environment and performance review. The “flexibility/control” dimensions influence the adoption of the balanced (or unbalanced) set of performance measures a company uses.

Originality/value

This paper contributes to clarifying how OC influences PMSs in manufacturing SMEs. Moreover, the study of interplay between flexibility/control dimensions and internal/external dimensions supports the identification of three theoretical propositions and four PMS types related to the four different OCs identified by Cameron and Quinn (1999).

Sustainable innovation practices and their relationship with the performance of industrial companies

Purpose

Conditioning factors of the globalized world have created new requirements and opportunities in developing management models for organizations that englobe sustainability aspects, which presume substantial investments in innovation. Therefore, the purpose of this paper is to analyze the relation between sustainable innovation practices and the performance of industrial companies.

Design/methodology/approach

This was a quantitative study and carried out by applying a research survey in Brazilian industrial companies.

Findings

The results showed that there are significantly positive associations between several variables related to sustainable innovation practices and company performance, being, therefore, possible to confirm the original proposed hypothesis.

Research limitations/implications

The main limiting factors were theoretical choices, comprehension of the phenomenon through the perception of the respondents, and the number of companies in the sample, as little representation was found in the researched population. In this manner, the results cannot be applied to the universe of considered research, being restricted solely to the group of companies in the sample.

Practical implications

From the main contributions, it is possible to highlight, at a theoretical level, the joint approach to issues of sustainable innovation and performance, since there are few studies covering the impact of adopting innovation practices on company performance. At a practical level, understanding of how the behavior of Brazilian industrial companies contributes to the wide distribution of practices that may contribute to better business performance and generate competitive advantages.

Social implications

At a social level, understanding of the benefits in adopting sustainable innovations practices favors the minimization of negative socio-environmental impacts.

Originality/value

By analyzing the themes of sustainable innovation and industrial performance, the present study may contribute to adopting business behavior that strategically and systemically integrates the objectives of sustainable innovation.

Comprehensive performance measurement systems design and organizational effectiveness

Purpose

The purpose of this paper is to provide empirical evidence regarding the relationship between the level of comprehensiveness of a performance measurement system (PMS) and its respective organizational effectiveness. The extant literature has highlighted that a PMS may successfully contribute to the implementation of the organizational strategy, with the balanced scorecard (BSC) serving as an exemplar of a strategy performance management tool and playing a primary role to this end. However, the reasons for the overall high rate of failure in the implementation of the BSC remain unexplained and, to date, little empirical research exists regarding the design of PMSs such as the BSC and its constituent elements.

Design/methodology/approach

Using a survey of 103 Italian managers, the paper advances a model describing a comprehensive BSC design, after identifying the key attributes from the performance management literature. Data were analyzed using cluster analysis and multiple regression analysis.

Findings

Results suggest that organizations are implementing the BSC following two different approaches, which vary from a less comprehensive to a more comprehensive design. More importantly, the BSC design explains variation across three organizational effectiveness measures: improvements in translating the organizational strategy into operational goals, understanding cause–effect relationships and enhancing internal communication among employees.

Originality/value

The paper builds on and extends the previous literature on performance management in two ways. First, via a literature review, it introduces a model describing a comprehensive BSC design, which includes 12 attributes. Second, it demonstrates that organizational effectiveness varies positively with the level of comprehensiveness of the BSC design.

Healthcare supply chain management: literature review and some issues

Purpose

The purpose of this paper is to examine the causal linkages among supply chain practices, effectiveness of supply chain performance (SCP) and organizational performance (OP) in Indian healthcare industries.

Design/methodology/approach

This paper is helpful in developing a framework for linking a healthcare supply chain practice to its OP, and thus identifies how such a linkage can be connected to the effectiveness of SCP. Such effort also enables the authors to derive a set of recommended supply chain practices for SC performance.

Findings

From the literature review, this paper finds that, in the context of Indian healthcare industries, efficient SC performance may play a critical role for overall OP improvement, as there is a close interrelationship between supply chain management (SCM) practices and SCP that may have a more significant effect on OP improvement.

Research limitations/implications

The principle limitation of the paper is that it is performed only in a particular industry and with a questionnaire survey which could be extended in future for other industries also. Another limitation of the paper is that it is focused only on the SCP of medical device and equipment supply chain which is a small portion of the whole healthcare supply chain, and therefore requires further research covering various other domains of healthcare supply chain. Another limitation of the study is that the sample survey has been taken from only one respondent per company at one point of time which may create biasness in the results. Thus, future research should collect data through multiple members from the organization.

Practical implications

This study contributes to know the effect of SCM practices on healthcare SCP and provides a practical and useful tool to evaluate the extent of effectiveness of SCP and finally their impact on the healthcare OP. Finally, this study provides conceptual and descriptive literature regarding SCM practices that leads to improvement in healthcare performance.

Social implications

This study adds to the knowledge on healthcare SCM performance by exploring the relationship between supply chain practices, healthcare SCP and healthcare OP and by developing and testing a research framework thus help in improving patient satisfaction.

Originality/value

This study attempts to show how the potential benefits of supply chain practices can no longer be ignored in healthcare supply chain.

Supply chain performance measures and metrics: a bibliometric study

Purpose

The purpose of this paper is to review the existing literature on supply chain performance measures and metrics (PMMs). It provides a critical evaluation of 234 articles published in past 24 years.

Design/methodology/approach

The paper examines the studies published from 1991 to 2014 by adopting the bibliometric technique of citation and co-citation analysis.

Findings

The analysis of the results indicate that the number of articles on supply chain PMMs is increasing at its fastest pace in the past few years. Furthermore, the study identifies some of the most influential articles on performance measurement and metrics. Finally, it concludes that there has been a transition from traditional to more sophisticated performance measurement system.

Research limitations/implications

This study focuses only on supply chain performance measurement and metrics and excludes research on performance management and control. Thus, researchers may explore and extend this area of research.

Originality/value

To the knowledge of the authors, this is the first study to review the literature on supply chain PMMs by using citation and co-citation analysis. The study includes 234 articles over the time of 24 years (1991-2014).

Using benchmarking to assist the improvement of service quality in home support services for older people-IN TOUCH (Integrated Networks Towards Optimising Understanding of Community Health)

Service providers and funders need ways to work together to improve services. Identifying critical performance variables provides a mechanism by which funders can understand what they are purchasing without getting caught up in restrictive service specifications that restrict the ability of service providers to meet the needs of the clients. An implementation pathway and benchmarking programme called IN TOUCH provided contracted providers of home support and funders with a consistent methodology to follow when developing and implementing new restorative approaches for service delivery. Data from performance measurement was used to triangulate the personal and social worlds of the stakeholders enabling them to develop a shared understanding of what is working and what is not. The initial implementation of IN TOUCH involved five District Health Boards. The recursive dialogue encouraged by the IN TOUCH programme supports better and more sustainable service development because performance management is anchored to agreed data that has meaning to all stakeholders.

Missing performance management and measurement aspects in performance-based contracting

Purpose

Performance-based contracting (PBC) is a business model for the adaptive and innovative delivery of product-service systems. In PBC, the provider is paid according to the service performance with the aim of providing monetary incentives to safeguard possible outcomes as much as possible for the PBC customer. Performance measurement and its management are crucial for PBC success and, in particular, for the pay-for-performance link. However, the literature on PBC performance management is rather sparse, and there has been no systematic review on the topic. Thus, the purpose of this paper is to fill that gap and to present a comprehensive and systematic review of performance measurement and management in the PBC context.

Design/methodology/approach

The paper builds on a literature review based on a sample of 102 subject-relevant articles from academic journals. The content analysis follows a two-step procedure. First, the articles are coded following a process-based research framework. Second, the content of each process step is assessed in a qualitative text analysis.

Findings

The results show a surprising scarcity of papers that explicitly address performance management topics in the context of PBC. Only the topics of performance specification and performance indicators are broadly addressed, whereas in all of the other areas, e.g., strategic alignment, data capture and reporting, only limited specific findings could be found.

Research limitations/implications

The paper concludes that future research on performance management in PBC should expand its theoretical framework and empirical efforts in four specific proposed directions.

Originality/value

The paper provides an up-to-date review that is focused on performance management and measurement in the emerging context of PBC.

Designing a performance measurement system for collaborative network

Purpose

The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for a collaborative network and to identify which factors affect such a design.

Design/methodology/approach

This is a single-case study of a collaborative network. The data have been collected from semi-structured interviews conducted during 2008-2009 and after the design process in 2010 and 2012, respectively.

Findings

The research results present a five-step process model for designing a PMS for a collaborative network. The findings show that a participatory development style that enhances socialisation, the positive development of a network culture and an outside facilitator all have beneficial effects on the design process.

Practical implications

The practical contribution of this study is related to knowledge about the PMS design process for a collaborative network to support its measurement-related development projects. This knowledge involves the phases of such a process as well as the various factors supporting or hindering it.

Originality/value

The study presents a PMS design process for the case network, which can be utilised in other collaborative networks in a similar context. It also highlights the most essential practical experiences related to this process.

Operationalising performance measurement dimensions for the Australasian nonprofit healthcare sector

Purpose

The purpose of this paper is to develop a performance measurement (PM) framework for Australasian nonprofit organisations (NPOs) involved in healthcare, and operational descriptions for each PM dimension within this framework.

Design/methodology/approach

Literature relating to the balanced scorecard and other PM frameworks was examined to develop an initial conceptual model, and this model was substantially improved by collecting qualitative data from nine Australian and New Zealand healthcare NPOs using a case study approach.

Findings

The study identifies nine causally related PM dimensions: mission, strategy, organisational capabilities, infrastructure and people development (people and information), financial health, processes, and stakeholder satisfaction (clients, people, and donors). The study also recognised that “Mission” and “Strategy” should be PM dimensions and that healthcare NPOs should focus on satisfying its people, not only donors and clients. Additionally, 41 operational descriptions are developed for each of these dimensions and can enable detailed PM items to be derived by organisations.

Originality/value

The study is the first study that has been undertaken to develop a PM framework for the Australasian NPOs to a level that it can be readily used by the practitioners (following customisation to their own specific context). The developed model also serves as a basis for future quantitative academic research aimed at testing and empirical validation of the conceptual model.

Are subjective business performance measures justified?

Purpose

– The purpose of this paper is to operationalize the subjective measures of business performance and assessing their justification for use in place of objective measures of business performance.

Design/methodology/approach

– The study is based on a sample survey of 171 companies listed on Bombay Stock Exchange, India. A cross-sectional descriptive research design has been used. Exploratory factor analysis was used to assess the factor structure and dimensionality of objective and subjective measures of business performance. The psychometric properties of these measures and their interrelationship have been assessed through confirmatory factor analysis.

Findings

– The study finds a strong positive correlation between subjective business performance and objective business performance. The study finds it justified to use the subjective measures of business performance.

Research limitations/implications

– Response bias may have crept in because of self-reported measure used for the study. Future researchers may cross-verify the subjective perception of respondents with data available from the records of the firms. Second, the study focuses only on financial and operational indicators of performance. The future studies may widen the scope of business performance by incorporating the interests of other stakeholders like suppliers, government, environment and society in general.

Practical implications

– The strategy researchers confronting the challenge of adopting appropriate measures of business performance can use either or both of subjective and objective performance measures, as suggested in this study. The study has suggestions for strategic decision makers regarding measurement of business performance in terms of financial as well as operational indicators.

Originality/value

– The study operationalizes and validates two measures of performance, namely, subjective business performance and objective business performance. The study contributes to the strategic management literature by providing evidence for association between objective and subjective measures of performance.

Taxonomizing performance measurement systems’ failures

Purpose

– After more than 30 years of research, literature on performance measurement systems (PMS) is characterized by diversity and fragmentation. Due to the multidisciplinarity of stakeholders and researchers involved the basis of literature is expanding, but not converging. The purpose of this paper is to dispersedly discuss failures of PMS in the abundance of literature written.

Design/methodology/approach

– Over 250 articles related to PMS have been analyzed in order to shortlist failures of PMS. Two criteria have been used: explicitly referenced being a failure; or mentioned as being essential for a successful PMS. Next steps were clustering, cross-checking with academics and professionals and re-allocation to appropriate levels.

Findings

– This paper identifies 36 failures and proposes an easy taxonomy for further referencing by attribution to three levels: metric, framework and management. Failures range from uncertainties in data gathering, lack of knowledge and dealing with complexity, toward the allocation of necessary resources.

Research limitations/implications

– Limitations are attributed to the abundance of research published on PMS. Consequently, incorporated papers are a subset representing the current state of the research domain. Furthermore, the completeness of the list can be discussed as well as the level of generalization of the proposed taxonomy.

Originality/value

– Both academics and professionals can benefit from this study as it creates an awareness of the risks involved when constructing, implementing and managing a PMS. Therefore, this original research ought to be seen as a catalyst for a learning curve, as it puts the research of PMS in a different perspective.

Configuration of supply chain integration and delivery performance

Purpose

– The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions.

Design/methodology/approach

– The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products.

Findings

– Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment.

Research limitations/implications

– Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning.

Practical implications

– The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures.

Originality/value

– Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.

Social media and performance measurement systems: towards a new model?

Purpose

– The purpose of this paper is to analyse how social media (SM) influence performance measurement systems (PMS), examining changes in measurement methods, performance indicators and their application.

Design/methodology/approach

– The framework of the research was constructed to cover the technical component of PMS (measurement methods and indicators) and the use of the information obtained from SM. Empirically, the study is based on a set of case studies in eight companies.

Findings

– The study findings offer a theoretical and empirical framework to evaluate PMS in the era of SM. It provides a classification of SM metrics, key performance indicators correlated to their use within different departments belonging to eight companies, highlighting the benefits and threats of SM information for PMS.

Research limitations/implications

– The limitation of this study is the diversity of industries included into the multiple-case study. The authors choose cases with the aim of providing a broader view on the impact of SM on PMS. However, the results show the dependency of use and type of measurement on certain industries, requiring future research focused on specific sectors or PMS aspects.

Practical implications

– The paper provides a map of SM information measurement methods and use, which allows companies to position themselves and examine PMS evolution.

Originality/value

– The results of the paper propose a holistic model, employing SM as a new variable in PMS.

Customer perceptions of road infrastructure surface conditions

Performance is a key tenet of infrastructure management. This paper looks at a measure of service level in infrastructure, namely, road smoothness. Conventionally, studies of this type have focused on the technical measures themselves. This paper presents the results of the first stage of a New Zealand-based case study that, by contrast, explored the engineering processes through the lens of the outcomes they sought to achieve; in this instance, customer comfort. The paper asserts that if performance is to be determined by outcomes, then a holistic approach is needed, including a revised definition of technical performance.

Designing a model for profiling organizational performance management

Purpose

– The purpose of this paper is to design and test a model for analyzing organizational performance management (PM) practices.

Design/methodology/approach

– This study follows the design science approach. Variables affecting the status of PM are reviewed and classified based on existing literature. These variables are analyzed and a compact set of critical variables are chosen to represent PM maturity. Designed model is implemented in practice as a survey receiving 271 responses, and tested by using both quantitative and qualitative approach.

Findings

– The survey data are utilized in the development of four distinct PM maturity profiles. The empirical results provide understanding on the current PM maturity level and common development targets in Finnish organizations.

Research limitations/implications

– External validity of the research is compromised by the context and respondent group. More in-depth qualitative studies could provide more understanding on the causes of presented findings.

Practical implications

– The proposed model offers best practices to develop PM and identifies variables crucial to create satisfaction toward PM. The presented profiles also help in evaluating the status of PM in the organization examined.

Originality/value

– The originality of the new model relates to its balance between rigor and relevance. In addition, the study is one of the first attempts to widely apply PM maturity models in practice. A distinctive feature of this study is the maturity profiles which are built upon empirical data.

Development of assessment methodology for improving performance in SME's

Purpose

– The purpose of this paper is to develop an assessment methodology that can be used to evaluate performance of small and medium enterprises (SMEs) in the manufacturing sector.

Design/methodology/approach

– This area of the study focuses on the assessment of performance in manufacturing SMEs. The methodology contains qualitative and quantitative measures that can quantify the opportunities and benefits within SMEs, as well as identifying the performance gaps between the current performance of the company and world-class performance. This includes reviewing the literature relating to assessment methodology and collecting data by carrying out semi-structured interviews with staff at target SMEs.

Findings

– The results show that the proposed assessment methodology is effective in identifying hidden opportunities and benefits in the manufacturing SMEs sector, establishing world-class performance of the companies and comparing this with current performance in order to identify gaps in performance in manufacturing SMEs.

Practical implications

– This assessment can be used for monitoring and assessing SMEs performance. The developed methodology can be used by manufacturing SMEs as an assessment and benchmarking tool. It enables manufacturing SMEs to identify opportunities for improvement and determine the gaps in current performance; this will assist manufacturing SMEs in selecting an appropriate tool to improve their performance in order to achieve the company objectives.

Originality/value

– This paper presents a successful and effective assessment methodology for manufacturing SMEs. It measures current performance which will provide a useful indicator to identify waste. It attempts to improve company performance and suggests how such activities could be organised and managed more effectively. Consequently it leads to a high potential for cost and time saving and quality improvement.

What do we really mean by “Balanced Scorecard”?

Purpose

– The balanced scorecard (BSC), first created by Kaplan and Norton in 1992, has been developed over the last 20 years, resulting in numerous iterations. There is currently no agreed taxonomy for these iterations, making comparison of research findings difficult. The purpose of this paper is to propose a framework for describing the different iterations.

Design/methodology/approach

– In order to assist in understanding the numerous changes, the concept of revision control was introduced. A full review of the literature describing new iterations of the BSC was undertaken and these iterations were classified as minor developments or major generational evolution.

Findings

– Eight subsets of the Balanced Score card are proposed, grouped into three generations; the first being the initial generation of score card, the second generation including strategy maps, and the final generation which includes destination statements.

Practical implications

– It is planned that this simple classification will prove useful to practitioners, for describing which generation of the scorecard they propose to implement, and for academics to describe more precisely the scorecard that they are analysing.

Originality/value

– This paper is the first to provide a taxonomy for the different versions of the BSC, through a process of identifying and labelling the major and minor changes that have occurred. This allows a more nuanced analysis of the BSC as a tool for managing performance and adding precision to any critique, in that it is clear which version has been used.

Adopting a contemporary performance management system

Purpose

– The purpose of this qualitative research is to explore the characteristics and issues related to the transition of a UAE-based fast-growth small-to-medium enterprise (FGSMEs) from the traditional performance management system (PMS) to a modern PMS through a design of a potential balanced scorecard (BSC) and strategy map for the company.

Design/methodology/approach

– The study was conducted in one of the FGSMEs that serves more than 16,000 farmers across the United Arab Emirates (UAE). A qualitative case study methodology was used in this study. The focus was on “how” questions and exploratory analysis of primary and secondary data supported by in-depth interviews with senior managers.

Findings

– This research highlights the adoption of a new, more proactive performance management accounting – the BSC. It was found that the BSC initiatives already exist in the company but not clearly linked together and directed toward the effective implementation of BSC system. It was found that these initiatives were initiated by the interests of different work units but not properly integrated as one whole company system. Such initiatives if integrated together and aligned with the overall objectives and strategies of the company can facilitate the comprehensive adoption of the BSC system and maximize the possibility of achieving better measurement and management of organizational performance.

Research limitations/implications

– The study was limited to the UAE and it focussed exclusively on a single fast-growing enterprise. The results presented may not suitable to be generalized or extended to other contexts.

Practical implications

– Our study highlights the need for better understanding of the use of non-traditional-measurement mechanisms like the BSC, that may substitute for the roles of financial-based performance measurements and lead to superior performance to our case company. This study suggested that many of the roles played by traditional performance management can be substituted by, or supported by other mechanisms at the corporate level like the BSC system and the detailed design of a potential BSC and strategy map for the company will act as a guide to help in bringing the modern performance management techniques and tools into the other Eastern FGSMEs also.

Originality/value

– The paper contributes to the literature by being one of the first to study contemporary PMS within a middle-eastern context.