The fundamentals of performance measurement systems

2014 ◽  
Vol 63 (7) ◽  
pp. 879-922 ◽  
Author(s):  
Kwee Keong Choong
Keyword(s):  
Performance Measurement ◽  
Practical Significance ◽  
Performance Measurement System ◽  
Future Research ◽  
Research Gaps ◽  
Content Type ◽  
Non Profit ◽  
The Past ◽  
Use Of Data ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to identify the fundamentals of a performance measurement system (PMS) as discussed in the literature for the past 32 years in an attempt to provide a research agenda (RA) for future research. Design/methodology/approach – The paper uses a systematic review of the business, public and non-profit sector literature in examining what constitutes the fundamentals of PMS, and how these fundamentals have influenced the use of data (especially on non-financial data), development of measuring methods, measuring attributes and measuring process. Findings – The paper finds that there are a small number of articles providing that can be considered to have provided substantial discussion of the fundamentals of PMS. While there is no consensus on what constitute the fundamentals of PMS, using content analysis, citation analysis and on the strict criteria of necessary and/or sufficient for the existence of a PMS, this paper managed to characterize the fundamentals into six categories. This paper found that the field of PMS has not change much during the past 30 or more years, and there remains various pragmatic and research gaps that need to be addressed. Practical implications – The results, outcomes, and analysis of this paper have both practical and academic implications. The gaps and recommendations for future research is consolidated into a RA that provides practitioners to evaluate existing PMS, avoid issues and seek ways to develop a conceptual (theoretical) PMS that is of greater practical significance. Originality/value – The results of this study contribute toward providing an update of the current state of development and research into PMS; and managed to identify existing practical issues and research gaps of PMS, and provided a RA on which ongoing and future research efforts on this topic can be built upon.

scholarly journals Interplay between performance measurement and management, employee engagement and performance

2017 ◽  
Vol 37 (9) ◽  
pp. 1207-1228 ◽  
Author(s):  
Marisa Smith ◽  
Umit Sezer Bititci
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Employee Engagement ◽  
Longitudinal Research ◽  
Two Dimensions ◽  
Performance Measurement System ◽  
Future Research ◽  
Content Type ◽  
Performance Measurement Systems ◽  
And Performance

Purpose The purpose of this paper is to recognise the importance of the interplay between performance measurement, performance management, employee engagement and performance. However, the nature of this phenomenon is not well understood. Analysis of the literature reveals two dimensions of organisational control, technical and social, that are used to develop a conceptual framework for studying this phenomenon. Design/methodology/approach The authors conducted explorative action research involving pilot and control groups from two departments of a UK bank. Findings The authors show that an intervention on the social controls has led to changes in technical controls of the performance measurement system resulting in significant improvement in employee engagement and performance. Research limitations/implications The research was undertaken with two cases from a single organisation. Further fine-grained, longitudinal research is required to fully understand this phenomenon in a wider range of contexts. Practical implications The paper contributes to the theory on performance measures and gives guidance on how organisations might design their performance measurement systems to enhance employee engagement and performance. Originality/value The study makes three contributions. First, the authors introduce a new theoretical framework based the organisational control theory providing a basis for future research. Second, through nine propositions, the authors establish a causal relationship between performance measurement, performance management, employee engagement and performance. Third, the authors identify a gap in knowledge concerning the design of organisational controls in the context of the process that is being managed.

scholarly journals Performance measurement systems in auditing firms

2015 ◽  
Vol 5 (4) ◽  
pp. 395-423 ◽  
Author(s):  
Mohamed Hegazy ◽  
Myada Tawfik
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Performance Measurement System ◽  
Future Research ◽  
High Quality ◽  
Content Type ◽  
Financial Measures ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate challenges facing auditing firms in designing and measuring their performance and discusses why and how the balance scorecard (BSC) could support the auditing firms overcome such challenges. The paper contributes to the existing literature by identifying the peculiarity of the auditing firms in designing and implementing performance measurement systems including the need for sound and advanced information systems, subjectivity embedded in measuring customer satisfaction, growth and success of the firms and restrictions imposed by regulations and auditing standards for the provision of non-audit services which may increase the firms’ revenues and profits to help maintain high-quality outputs. Also, the paper provided evidence for the use of non-financial measures in service industry in particular for customers and finance. The unique dilemma in the auditing firms to provide services to satisfy customers yet maintaining distance and independence from them represent an important research question requiring investigation and study. Design/methodology/approach – A review of the literature for performance evaluation in general and in particular BSCs in service industries was made to identify challenges facing auditing firms when measuring their performance. Data were collected using case study approach; two auditing firms, one of the Big 4 and a medium size auditing firm with international affiliation operating in the Egyptian market were selected. Interviews, document analysis and participant observations were used in the analysis of each firm performance measurement system. Findings – The paper suggests that major challenges face auditing firms in measuring their performance mainly the size of the firm and its affiliation with international auditing firm, the qualification and experience of partners and audit managers needed for the design and implementation of a BSC or similar performance measures, the resources required for the introduction of such performance measure and the peculiarity of the auditor and client relationship with the need to maintain independence and confidentiality while providing high-quality services. Although both auditing firms being studied have formal performance measurement systems, they differ in their degree of comprehensiveness. In particular, the performance measurement system of the larger firm is more elaborate than that of the smaller one and both place more emphasis on qualitative measures such as learning and growth and internal business processes than financial measures. Research limitations/implications – Overall, the results have implications for understanding the performance measurement process of auditing firms in general and in particular in an emerging economy such as Egypt. The identification of the challenges facing auditing firms in measuring their performance and how the implementation of BSC can help partners and employees to overcome those challenges will add to the literature for performance evaluation in service companies. Future research should be carried to compare and assess differences between the behavioural aspects of performance measures in auditing firms and possible application of BSC in such firms and those used in services industry. Also, the practicality of implementing a BSC measures for different auditing firms should be investigated further in future research. Originality/value – The research among the first to investigate the challenges facing auditing firms in designing and operating a performance measurement system and to discuss, using case studies, how a BSC could support the auditing firms to overcome such challenges. Further, the research provides insights into performance measures in auditing firms in developing economies like Egypt which are sparse since most studies have been conducted in developed economies. Also, the paper enriches the literature of performance measurement systems in service rather than the manufacturing sector especially for medium and small size firms.

Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vieri Maestrini ◽  
Andrea Stefano Patrucco ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
Paolo Maccarrone
Keyword(s):  
Performance Measurement ◽  
Performance Improvement ◽  
Measurement System ◽  
Structural Equation ◽  
Performance Measurement System ◽  
Content Type ◽  
Performance Improvements ◽  
Supplier Performance ◽  
Performance Measurement Systems ◽  
The Impact

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

scholarly journals Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Francisco Frederico ◽  
Jose Arturo Garza-Reyes ◽  
Anil Kumar ◽  
Vikas Kumar
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Industry 4.0 ◽  
Theoretical Perspective ◽  
Performance Measurement System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Performance Measurement Systems

PurposeThe purpose of this paper is to present a theoretical approach based on the balanced scorecard (BSC) with regard to performance measurement – PM in supply chains for the Industry 4.0 era.Design/methodology/approachThis paper combines the literature of PM and specifically the BSC with the literature related to the dimensions of supply chain in the context of Industry 4.0.FindingsDimensions extracted from the literature based on supply chains within the context of Industry 4.0 showed a strong alignment with the four perspectives of the BSC, which make it suitable to be considered as a performance measurement system (PMS) for supply chains in this new context.Research limitations/implicationsFrom theoretical perspective, this study contributes to the limited literature on PM for supply chains in Industry 4.0 era. The study proposes a supply chain 4.0 Scorecard and strongly support researchers to conduct future empirical researches in order to get a deeper understanding about PM in supply chains in the Industry 4.0 era. As limitations, the theoretical framework proposed needs further empirical research in other to validate it and obtain new insights over the investigation conducted and presented into this paper.Practical implicationsPractitioners can use this study as a guide to develop more effective performance measurement systems – PMSs in their organizations.Originality/valueThis research is unique as it addresses a significant knowledge gap related to PM in supply chains in the Industry 4.0 era. It brings a significant contribution in terms of understanding how to measure performance in supply chains in this new era.

A review of facilities management performance measurement

2019 ◽  
Vol 37 (4) ◽  
pp. 490-511 ◽  
Author(s):  
Daniel Amos ◽  
Zairul Nisham Musa ◽  
Cheong Peng Au-Yong
Keyword(s):  
Performance Measurement ◽  
Design Methodology ◽  
Systematic Approach ◽  
Web Of Science ◽  
Future Research ◽  
Facilities Management ◽  
Content Type ◽  
Slow Pace ◽  
The Past ◽  
Key Issues

Purpose The purpose of this paper is to present a comprehensive review of facilities management (FM) performance measurement (PM) research within the past two decades to understand existing gaps in FM PM literature. Design/methodology/approach The paper employs a systematic approach to review papers in FM PM published from 1997 to 2017. The articles published in selected peer-reviewed international journals in the last 20 years were collected by conducting literature search in the Web of Science and Scopus databases. The content of the papers were scrutinized to understand the gap in literature. Findings The review depicts a slow pace of FM PM research characterized by diverse and fragmented performance measures, whereas the existing PM frameworks are at the nascent stage. Research limitations/implications The judgments of the paper are based on the 54 papers selected for the critical review and analysis that should be treated as key issues in FM PM research agenda. The review also excludes energy management. Originality/value The paper identifies the gaps in the current PM literature in FM and set propositions for future research which is of utility and relevance to FM researchers more especially on the existing conceptual frameworks. To the best of the authors’ knowledge, this paper is the first attempt to conduct a review on FM PM in the extant literature.

Big data and performance measurement research: trends, evolution and future opportunities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alberto Sardi ◽  
Enrico Sorano ◽  
Valter Cantino ◽  
Patrizia Garengo
Keyword(s):  
Big Data ◽  
Performance Measurement ◽  
Performance Measurement System ◽  
Future Research ◽  
Holistic View ◽  
Content Type ◽  
Digital Revolution ◽  
Research Opportunities ◽  
And Performance ◽  
Number Of Publications

Purpose Current literature recognised big data as a digital revolution affecting all organisational processes. To obtain a competitive advantage from the use of big data, an efficient integration in a performance measurement system (PMS) is needed, but it is still a “great challenge” in performance measurement research. This paper aims to review the big data and performance measurement studies to identify the publications’ trends and future research opportunities. Design/methodology/approach The authors reviewed 873 documents on big data and performance carrying out an extensive bibliometric analysis using two main techniques, i.e. performance analysis and science mapping. Findings Results point to a significant increase in the number of publications on big data and performance, highlighting a shortage of studies on business, management and accounting areas, and on how big data can improve performance measurement. Future research opportunities are identified. They regard the development of further research to explain how performance measurement field can effectively integrate big data into a PMS and describe the main themes related to big data in performance measurement literature. Originality/value This paper gives a holistic view of big data and performance measurement research through the inclusion of numerous contributions on different research streams. It also encourages further study for developing concrete tools.

Performance measurement system in the situation of simultaneous vertical and horizontal integration

2016 ◽  
Vol 36 (10) ◽  
pp. 1182-1200 ◽  
Author(s):  
Jukka Pellinen ◽  
Henri Teittinen ◽  
Marko Järvenpää
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Field Studies ◽  
Production Performance ◽  
Performance Measurement System ◽  
Horizontal Integration ◽  
Content Type ◽  
Performance Measurement Systems ◽  
Integration Strategies

Purpose The purpose of this paper is to extend the knowledge of the use of performance measurement systems (PMS) in situations where the benefits of both vertical and horizontal integration strategies are sought simultaneously. Design/methodology/approach This is a single case study, the purpose of which is to build a contextual theory. Findings The main results highlight three competing and partly contradictory tendencies in the development and use of PMS in organizational integration. In addition, the authors have identified features of PMS that may benefit or hinder integration. Grounded on empirical findings the paper presents a more complete theoretical framework of PMS for integration. Research limitations/implications The propositions of the framework need to be tested in different contexts with case and field studies or a large sample of data using statistical techniques to improve external validity. The causal relationships explored in this study may be further developed using longitudinal studies. Practical implications In acquisition situations there exists the need for vertical integration to control the growing complexity but at the same time for horizontal control to advance customer-centred production. Performance measurement is the key issue to examine the execution and results of such integrations. Originality/value Case study findings are used to develop a more comprehensive theory of PMS design and use in situations where both vertical and horizontal integration are sought. Contrary to current understandings, the central statement of this study is that horizontal organization is not an alternative to vertical organizational structure but they can be effectively coupled.

The intricate implementation of performance measurement systems: exploring developments in professional-service organizations in the Dutch non-profit sector

2008 ◽  
Vol 74 (4) ◽  
pp. 615-635 ◽  
Author(s):  
Christine Teelken
Keyword(s):  
Performance Measurement ◽  
Quality Care ◽  
Professional Service ◽  
Professional Organizations ◽  
Performance Measurement System ◽  
Cross Sectional ◽  
Non Profit ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
Collegial Trust

Institutional and organizational theory supports the argument that current features of performance measurement systems (PMS) in public organizations are generally unsuitable for the actual nature of these professional organizations. Longitudinal and cross-sectional studies in the health care and higher education sectors in the Netherlands have shown that, despite external pressures, the implementation of such systems is slower than intended and seems to occur outside the primary process of the organization. Two rounds of interviews with quality coordinators in 2003 and 2006 showed that the gap between performance measurement systems and the operational process continued to exist, although its nature had changed. In general, quality coordinators responded pragmatically to the changes imposed upon them, as peer review and collegial trust played a vital part. The empirical findings illustrate that institutional and professional theories supplement each other in a fruitful way. Points for practitioners Policy-makers in the public sector involved with quality care and assurance should be aware that a well-structured performance measurement system (PMS) is no guarantee of smooth implementation. On the contrary, the implementation deserves attention in its own right. The more sophisticated and demanding the design of PMS, the more likely it is that employees find ways to work round such a system and only use it in a superficial or compliant manner. If implementation is not taken seriously into account, this will only lead to a greater gap between reality and rhetoric.

Time rationalities

2019 ◽  
Vol 32 (2) ◽  
pp. 456-482 ◽  
Author(s):  
Terhi Chakhovich
Keyword(s):  
Performance Measurement ◽  
Listed Company ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Targets ◽  
The Past ◽  
Future Performance ◽  
Performance Measurement Systems ◽  
And Performance

Purpose The temporality of performance measurement systems has been claimed to affect actors’ time orientation, such as that of listed company managers. The purpose of this paper is to explore this view. Design/methodology/approach The study uses constructivist data gathered from executives in one listed and one non-listed company. Findings The study shows that the research on performance measurement is based on a linear-quantitative view on time that assumes that humans orient towards the future from one point, the present; this view excludes other time-related constructs, particularly the past, and highlights a choice between the short term and the long term, idealising the long term. It is shown that the performance measurement of non-listed company executives is constructed through past-based, present-based and future-based rationalities: executives acknowledge the past as a basis for present and future performance, present actions as shaping future performance and future plans and performance targets as bases for present actions. Listed company executives’ performance measurement is constructed predominantly through the present-based time rationality. Research limitations/implications “The orientation from the present” and the “short” and “long terms” could be enhanced with time rationalities. Practical implications The evaluation periods within performance measurement systems do not determine the time orientations of the actors subjected to those systems; time rationalities could be considered when designing such systems. Originality/value The paper provides a novel view on performance measurement and time.

Impact of digital marketing – a bibliometric review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kedar Dunakhe ◽  
Chetan Panse
Keyword(s):  
Digital Marketing ◽  
Primary Data ◽  
Future Research ◽  
Relevant Research ◽  
Research Gaps ◽  
Content Type ◽  
The Past ◽  
Starting Point ◽  
Bibliometric Review ◽  
Area Of Study

Purpose The purpose of this paper is to review the literature on the topic “impact of digital marketing” over the span of past eight years, published in various prominent research journals in the past eight years. The purpose of this paper is to act as a starting point for several further researches in this area of study, and also to get the overview of the research that has happened and understand the relevant research gaps that exist in the area of digital marketing. Design/methodology/approach Scopus database is used to search the research publications on the selected topic. The papers selected for this paper have been published in the past eight years (2012–2020). Findings It has been concluded by many of the research papers reviewed that “Digital Marketing Efforts” influence the purchase intention of the customer. It can be also inferred that the distinction between the “marketing” and “digital marketing” is soon fading as every type of marketing effort will have an element of “digital marketing” in it. Research limitations/implications The approach to the review is theoretical and no primary data have been collected. This bibliometric review is expected to provide overview of the research that has happened over the span of past eight years in the area of digital marketing. Practical implications Many of the papers have expressed the limitations and opportunities for the future research. Few of the prominent and relevant research gaps are listed in this paper. This paper is expected to lay a foundation for several further studies in this area of study. Originality/value The paper is original in terms of reviewing the literature published on the topic, “impact of digital marketing”, between years 2012 to 2020. As the world has been forced to go digital due to COVID-19 outbreak, it has become all the more significant to take an account of developments in the field of “digital marketing”.

Sign in / Sign up

Export Citation Format

Share Document