scholarly journals The role of performance measurement in developing industrial services

2016 ◽  
Vol 22 (3) ◽  
pp. 264-276 ◽  
Author(s):  
Sanna Pekkola ◽  
Minna Saunila ◽  
Juhani Ukko ◽  
Tero Rantala
Keyword(s):  
Performance Measurement ◽  
Customer Service ◽  
Mining Industry ◽  
Content Type ◽  
Industrial Services ◽  
Practical Applications ◽  
Measurement Models ◽  
System Supplier ◽  
Industrial Maintenance

Purpose – The purpose of this paper is to examine inter-organisational cooperation in delivering maintenance services, focusing on the level of maturity of this cooperation and the current role of performance measurement in evaluating its effectiveness. It also determines how performance measurement should be developed to support the needs of networked maintenance. Design/methodology/approach – The empirical evidence is based on two cases of networks operating in the field of industrial maintenance. The first network operates in the energy industry, while the second operates in the mining industry. Both networks consist of machine supplier companies, performance partner companies and system supplier companies. A total of seven companies participated in workshops and interviews in 2013-2014. Findings – As a result of the study, suggestions for improving the performance measurement of service value in maintenance are presented and a framework is offered that meets the needs of the customer, service provider and equipment provider. The significant innovation of the research is its combination of network, service and value perspectives in performance measurement by presenting a framework for measuring created value of cooperation. Originality/value – The literature calls for new measurement models and frameworks that support the new management challenges. This research creates a framework for practical applications. The framework helps to identify possible development needs and increases the understanding of what is required when cooperation in a maintenance network deepens, moving from machine partner towards value partner.

The role of performance measurement models in multi level alignment

2014 ◽  
Vol 34 (9) ◽  
pp. 1153-1183 ◽  
Author(s):  
Rodney McAdam ◽  
Shirley-Ann Hazlett ◽  
Brendan Galbraith
Keyword(s):  
Performance Measurement ◽  
Conceptual Framework ◽  
Business Strategy ◽  
Theory Building ◽  
Content Type ◽  
Functional Strategy ◽  
Measurement Models ◽  
Level 1 ◽  
Level 2

Purpose – Market deregulation in the utilities sector has led to increased competition and rising customer expectations in both established and new markets. This, in turn, has forced organisations such as electricity and telecoms to make rapid, enterprise-wide changes on an increasingly frequent basis which in turn has led to problems with alignment. Misalignment can occur at many levels and can result in misused resources, loss of competitiveness, excessive cycle times, higher costs and loss of agility. The purpose of this paper is twofold. Given the lack of overarching theory, the paper begins by borrowing from contingency, dynamic capability and organisational learning constructs, to explore the role that performance measurement models can bring to improve the alignment between business strategy and functional strategy (level 1 alignment). Second, the paper analyses the role of performance measurement models in developing functional practices aligned with supply chain management (SCM) strategies (level 2 alignment). Design/methodology/approach – The study adopts an exploratory theory-building approach using four case studies. These are used as key supply chains in both established and new business areas within two longitudinal university-industry research partnerships (each of three years duration). Data from repeat interviews (n=42), focus groups (n=10), documentation and observations is analysed and forms the basis for the development of a conceptual framework and a set of related propositions. The data analysis followed Radnor and Boaden's (2004) method for analysing interpretive research. Findings – The findings show the role and impact of performance measurement models and methods on alignment at two levels, i.e. level 1 alignment – between business strategy and functional (SCM) strategy, and level 2 alignment – between the functional strategy (SCM) and SCM routines and practices. Originality/value – To date, there are few studies which explore the development of theory and practice in relation to the role and impact of performance measurement models and methods in improving organisational alignment. This exploratory theory building study makes a contribution to this gap through the development of the conceptual framework and propositions.

Executing strategy through comprehensive performance measurement systems

2017 ◽  
Vol 37 (4) ◽  
pp. 423-443 ◽  
Author(s):  
Pietro Micheli ◽  
Matteo Mura
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Company Performance ◽  
Content Type ◽  
Cost Leadership ◽  
Measurement Systems ◽  
Comprehensive Performance ◽  
Different Types ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance. Design/methodology/approach Survey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses. Findings This research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance. Research limitations/implications Further research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions. Practical implications Greater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy. Originality/value This study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.

Does transformational leadership always matter in frontline service roles?

2018 ◽  
Vol 28 (6) ◽  
pp. 733-751 ◽  
Author(s):  
Keo Mony Sok ◽  
Phyra Sok ◽  
Lan Snell ◽  
Pingping Qiu
Keyword(s):  
Customer Service ◽  
Service Performance ◽  
Hierarchical Regression ◽  
Content Type ◽  
Service Employees ◽  
High Level ◽  
Frontline Service Employees ◽  
The Relationship ◽  
Frontline Service

Purpose The purpose of this paper is to examine the role of frontline service employees (FSEs) motivation (enjoyment of work and driven to work) and ability (customer service ability) in the relationship between TFL and employee service performance. Design/methodology/approach This is a survey-based study which involves 534 FSEs and 135 supervisors in a hair salon setting. Hierarchical regression analysis was used to test the proposed hypotheses. Findings Results show that TFL is significantly related to employee service performance; this relationship is enhanced with the presence of driven to work; yet, it is neutralized with the presence of enjoyment of work. Further, the three-way interaction of TFL, enjoyment of work and customer service ability as well as TFL driven to work, and customer service ability are negatively associated with employee service performance. Practical implications The results advance service managers’ understanding of the importance of FSEs motivation and ability if they are to fully reap the benefits from their FSEs. The role of leader is not always effective in all situations. FSEs with high level of enjoyment of work and customer service ability would least rely on the guidance and support from the supervisors. Originality/value This research is one of the first to examine the role of subordinate’s characteristics (motivation – enjoyment of work and driven to work and ability – customer service ability) as the key moderators in the relationship between TFL and employee service performance.

Role of brand attachment in customers’ evaluation of service failure

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Luis Saavedra Torres ◽  
Monika Rawal ◽  
Ramin Bagherzadeh
Keyword(s):  
Customer Service ◽  
Positive Emotions ◽  
Service Failure ◽  
Negative Emotions ◽  
Research Question ◽  
Brand Attachment ◽  
Content Type ◽  
Coping Tactics ◽  
Practical Implications

Purpose This paper aims to examine the role of brand attachment as a relevant construct in customers’ evaluation after they face a service failure which impacts future consumer behaviors. It mainly answers the research question: does brand attachment cushion or amplify the effect of service failure on customers’ negative emotions? Design/methodology/approach A 2 × 2 × 2 experimental design was conducted. Data analysis was performed with ANOVA and moderated mediation. Findings Customer’s feelings toward a brand (brand attachment) that existed before a service failure occurred can regulate customer’s negative emotions especially when consumer attribute service failure to a controllable cause. This process minimizes the effect of service failure in customer’s satisfaction and consequently increase customer behaviors like word of mouth and loyalty intentions. Research limitations/implications Adding perceived intentionality as a service failure’s attribution could provide another layer of explanation of customer behavior. Also, an expanded study using a sector characterized by higher cost of change and permanent consumption could provide result’s generalizability. Practical implications Brand attachment should be included in the customer service strategy. In a service failure situation, brand attachment becomes part of the “service customer policy” helping customers to regulate their negative emotions. Originality/value This study fills the knowledge gap regarding the role of customers’ positive emotions toward brands when a service failure occurs. The current study extends branding literature by differentiating brand attachment role from coping tactics.

scholarly journals Evolutionary paths of performance measurement and management system: the longitudinal case study of a leading SME

2020 ◽  
Vol 24 (4) ◽  
pp. 495-510
Author(s):  
Alberto Sardi ◽  
Enrico Sorano ◽  
Alberto Ferraris ◽  
Patrizia Garengo
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Management System ◽  
Management Style ◽  
Longitudinal Case Study ◽  
Management Information ◽  
Content Type ◽  
Evolutionary Paths

Purpose The literature highlights the relevance of performance measurement and management system in small and medium enterprises (SMEs) to face the current competitive environment. However, a number of studies investigate how performance measurement and management system is effective for evolving and how contingency factors could influence this change. Newer experiences are sporadic and rarely investigated by researchers and practitioners. The purpose of this study is to identify the feasible evolutionary path of performance measurement and management system in leading SMEs to respond to current business challenges. Furthermore, it aims to contribute to the understanding of the role of key contingency factors influencing this evolution. Design/methodology/approach A longitudinal case study, based on retrospective and real-time investigations, is performed to investigate the primary evolutions of the performance measurement and management system and its key determinants. Findings The findings highlight two evolution paths, increasing the maturity of performance measurement. The first path highlights a strong command and control of performance management; the second path shows a democratic and participative of performance management. Moreover, management information system, organizational culture and management style are highlighted as key contingency factors in the change of performance management. Originality/value The authors contribute to knowledge in performance measurement field, showing how the efforts for developing performance measurement and management system in a leading SME could determine two different evolutionary paths. Furthermore, the paper describes the increasing role of organizational culture, management style and management information system in performance management evolution, as well as the relevance of online chats and social media in performance management activities.

Governmentality and performance for the smart city

2019 ◽  
Vol 33 (1) ◽  
pp. 204-232 ◽  
Author(s):  
Daniela Argento ◽  
Giuseppe Grossi ◽  
Aki Jääskeläinen ◽  
Stefania Servalli ◽  
Petri Suomala
Keyword(s):  
Performance Measurement ◽  
Smart City ◽  
Smart Cities ◽  
Research Question ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to explore the role of performance measurement systems as technologies of government in the operationalisation of smart city programmes. It answers the research question: how do the development and use of performance measurement systems support smart cities in the achievement of their goals? Design/methodology/approach This paper presents a longitudinal case study that uses an interventionist approach to investigate the possibilities and limitations of the use of performance measurement systems as technologies of government in a smart city. Interpretations are theoretically informed by the Foucauldian governmentality framework (Foucault, 2009) and by public sector performance measurement literature. Findings The findings address the benefits and criticalities confronting a smart city that introduces new performance measurement systems as a technology of government. Such technologies become problematic tools when the city network is characterised by a fragmentation of inter-departmental processes, and when forms of resistance emerge due to a lack of process owners, horizontal accountability and cooperation among involved parties. Research limitations/implications This paper is based on a case study of a single smart city, and outlines the need for both comparative and multidisciplinary analyses in order to analyse the causes and effects of smart city challenges. Originality/value This paper offers a critical understanding of the role of accounting in the smart city. The ineffectiveness of performance measurement systems is related to the multiple roles of such technologies of government, which may lead to a temporary paralysis in the achievement of smart city goals and programmes.

scholarly journals The concept and application of ḍamān al-milkiyyah (ownership risk)

2017 ◽  
Vol 9 (2) ◽  
pp. 148-163 ◽  
Author(s):  
Lutfi Abdul Razak ◽  
Muhammad Nabil Saupi
Keyword(s):  
Design Methodology ◽  
Islamic Law ◽  
Content Type ◽  
Practical Applications ◽  
For Profit ◽  
Descriptive Research ◽  
Financial Products ◽  
Financial Transactions ◽  
Practical Implications

Purpose The purpose of this paper is to elucidate the concept of ḍamān al-milkiyyah (ownership risk) and to assess its application in contemporary Islamic financial products and services. Design/methodology/approach The methodology adopted is that of descriptive research. Findings From an Islamic law of contract perspective, the concept of ḍamān al-milkiyyah is central to legitimate profit-making transactions and hence must be adhered to in practical applications of Islamic finance. Research limitations/implications This study should help motivate further investigation into the position of ḍamān al-milkiyyah among different parties in existing Islamic financial products and services. Practical implications Policymakers and regulators should ensure that Islamic financial products and services are structured in a way that does not allow parties to profit without adequately bearing the liability for potential loss. Social implications The condition of ḍamān al-milkiyyah as a source of legitimate profit reflects the idea that the role of finance in Islam is to promote and ensure social benefits. Originality/value This paper emphasizes the importance of ḍamān al-milkiyyah as a fundamental condition for profit in Islamic financial transactions.

Institutional work and implementation of a performance measurement and management system in a developing country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
A.K. Siti-Nabiha ◽  
Teddy Jurnali
Keyword(s):  
Local Government ◽  
Performance Measurement ◽  
Developing Country ◽  
Cultural Work ◽  
Institutional Work ◽  
Content Type ◽  
Public Managers ◽  
Norms And Values

Purpose This paper aims to investigate the actions and activities undertaken by public managers of a local government to institutionalise an externally mandated performance measurement and management (PMM) system in a developing country. Design/methodology/approach A qualitative case study of one of the best-ranked early adopters of PMM in a local government in Indonesia was undertaken, with interviews with public officers at various organisational levels, along with an extensive documentary review. An institutional work perspective was used to explain the types of work undertaken to institutionalise PMM at the organisation. Findings The PMM change was shown to be centralised and directed from the top and facilitated by other public officers. The Mayors’ instrumental and political view of PMM as a tool for efficiency and societal legitimacy enabled the adoption of PMM. The political and cultural work of the Mayor and the key officers involved constructing new rules pertaining to PMM, specifically in dealing with resource allocation and its associated sanctions and rewards, which encouraged more substantive implementation. The substantive implementation of PMM had a significant influence on the norms and values of the local government. Research limitations/implications The case organisation is the local government of a relatively medium-sized city. Therefore, it may be easier to achieve tighter control and coordination as compared to the local government of other larger cities. Originality/value The paper highlights the interrelated nature of institutional work in the creation and disruption of institutions. In addition, the three main types of institutional work, i.e. political, cultural and technical work, are not mutually exclusive. The paper also indicates the processes involved in the implementation of PMM, which unfolds from the establishment of a policy, its impact, and the role of the actors in the process.

Foreign or domestic: who provides better customer service?

2015 ◽  
Vol 29 (2) ◽  
pp. 124-136 ◽  
Author(s):  
Amit Poddar ◽  
Timucin Ozcan ◽  
Ramana Kumar Madupalli
Keyword(s):  
Customer Service ◽  
Service Recovery ◽  
Content Type ◽  
Service Employees ◽  
Service Excellence ◽  
Customer Evaluations ◽  
Interaction Factors ◽  
Practical Implications ◽  
Service Representative

Purpose – The purpose of this paper is to investigate the role of customer service employees’ (CSEs) competence and service recovery outcomes on service evaluations of foreign and domestic CSEs. Design/methodology/approach – Three experiments were conducted to test and validate the proposed hypotheses. The participants were told a cover story that they were either listening to (Study 2) or reading (Studies 1 and 3) a real conversation between a customer service representative of a bank and a customer and the authors wanted their views about the service encounter. While country of origin (COO) and competency were common independent variables across three studies, Study 2 included service recovery with a full refund and Study 3 had both full and partial refund and apology offered or not. Findings – Results from three experiments show that while competent CSEs are evaluated the same, regardless of their COO, the domestic CSE is evaluated more negatively than the foreign CSE when both are incompetent. The authors also find that when competent CSEs deliver no service recovery, the foreign CSE evaluations are significantly lower than the domestic one. Study 3 results show that this effect is mediated by participants’ ethnocentric beliefs. Research limitations/implications – For implications, this study provides a deeper understanding of the role of COO in services contexts. Future researchers can utilize the findings to investigate the important role that expectations play in determining service excellence and how it affects the COO effect. Practical implications – The paper provides managers in both offshoring client and provider firms with an understanding of the effects of offshoring on employee evaluations. It discusses the relevance/irrelevance of COO on the customer evaluations of service employees. Originality/value – The study investigates an under researched phenomenon – offshoring of services. This paper is one of the few looking at the role of different interaction factors, such as competence, recovery on service evaluations.

Association between performance measurement systems and organisational effectiveness

2014 ◽  
Vol 34 (7) ◽  
pp. 853-875 ◽  
Author(s):  
Bedanand Upadhaya ◽  
Rahat Munir ◽  
Yvette Blount
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Financial Services ◽  
Content Type ◽  
Services Sector ◽  
Measurement Systems ◽  
Organisational Effectiveness ◽  
Financial Services Sector ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate the role of performance measurement systems in organisational effectiveness in the context of the financial services sector within a developing country. Design/methodology/approach – Using the mail survey method data were collected from 69 financial institutions operating in Nepal. Multivariate analysis, in particular multiple regression analysis was employed to test the hypotheses. Findings – The results suggest that non-financial measures and feedback are tightly intertwined with organisational effectiveness. While institutions are focused on using the performance measures concerning internal business process perspective, less emphasis is placed on using customer and employee-related performance measures because they are considered less significant to organisational effectiveness. The findings also reveal that strategy-related feedback is considered more critical by management, as opposed to performance and staff. The study also provides evidence that 40.58 per cent of the financial institutions in Nepal had implemented the Balanced Scorecard, which is considered to be high when compared with other developing countries. Practical implications – The findings provide managers with valuable insights pertaining to the role of non-financial performance measures and the importance of feedback in improving organisational effectiveness, which could assist them in (re) aligning their performance measurement practices. Originality/value – The findings of this study contributes to the limited management accounting literature on performance measurement and the impact on organisational effectiveness by providing evidence from the financial services sector within the context of a developing country.

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