scholarly journals Managerial attitudes towards the incompleteness of performance measurement systems

2018 ◽  
Vol 15 (1) ◽  
pp. 84-103 ◽  
Author(s):  
Syrus Islam ◽  
Ralph Adler ◽  
Deryl Northcott
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Performance Measurement ◽  
Design Methodology ◽  
Environmental Services ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Objectives ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose Performance measurement systems (PMSs) are at the heart of most organisations. The aim of this study is to examine the attitudes of top-level managers towards the incompleteness of PMSs. Design/methodology/approach This paper draws on an in-depth field study conducted in an energy and environmental services provider based in New Zealand. The data, which were obtained from 20 semi-structured interviews, were triangulated against on-site observations and company documents. Findings The findings suggest that whether the incompleteness of a PMS is considered problematic or non-problematic depends on the role that the PMS plays in implementing a firm’s strategy. The authors show that when the PMS is mainly used to trigger improvement activities on and around strategic objectives and managers perceive adequate improvement activities to exist, then they consider the incompleteness of the PMS in relation to these strategic objectives to be non-problematic. Originality/value This study contributes to the nascent literature on managerial attitudes towards the incompleteness of PMSs by identifying conditions under which the incompleteness is considered problematic or non-problematic. The authors also contribute to the literature on the association between design qualities of PMSs and firm performance by suggesting that poor design qualities of a PMS (such as incompleteness) may not always translate into poor firm performance.

Marketing performance measurement systems and firm performance

2020 ◽  
Vol 54 (4) ◽  
pp. 885-907 ◽  
Author(s):  
Xiaoning Liang ◽  
Yuhui Gao
Keyword(s):  
Firm Performance ◽  
Performance Measurement ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Marketing Capabilities ◽  
Subjective Data ◽  
Content Type ◽  
Measurement Systems ◽  
Marketing Performance ◽  
Performance Measurement Systems

Purpose Driven by the growing pressure to justify the contributions of marketing activities, marketers have shown considerable interest in improving their marketing performance measurement systems (MPMSs). The purpose of this study is to examine the neglected mediating effect of marketing capabilities on the MPMS–firm performance relationship and to focus on specific aspects of MPMSs that have been largely omitted in the prior research, namely, the comprehensiveness and uses of MPMSs. Design/methodology/approach A survey was conducted with marketing and senior managers from 210 Irish-based companies. The proposed research model was tested by using the SPSS Process macro and structural equation modeling in AMOS 24. Findings The three characteristics of MPMSs influence firm performance in different manners: while the diagnostic use of MPMSs hinders the development of market-linking capability and thus negatively influences firm performance; the comprehensiveness of MPMSs positively influences firm performance through its impact on architectural marketing capability; and the interactive use of MPMSs via externally focused learning and market-linking capabilities. Research limitations/implications Although this study used objective firm performance data to validate subjective data, the use of single-informant and self-reported measures may still be a concern, as the strong relationships between variables may be because of single-informant bias. Practical implications This study provides insights into how companies can use a comprehensive MPMS to cultivate specific crucial marketing capabilities and thereby enhance firm performance. Originality/value This study contributes to the marketing performance measurement literature by proposing and empirically validating the mediating effect of marketing capabilities on the MPMS–firm performance relationship.

scholarly journals Taxonomizing performance measurement systems’ failures

2016 ◽  
Vol 65 (5) ◽  
pp. 672-693 ◽  
Author(s):  
Jelle Van Camp ◽  
Johan Braet
Keyword(s):  
Performance Measurement ◽  
Design Methodology ◽  
Data Gathering ◽  
Research Literature ◽  
Original Research ◽  
Content Type ◽  
Measurement Systems ◽  
Current State ◽  
Performance Measurement Systems ◽  
Research Domain

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.

A framework for facilities management supply chain performance evaluation: case study of hotel buildings

Facilities ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fathima Nishara Abdeen ◽  
Yasangika Gayani Sandanayake ◽  
Thanuja Ramachandra
Keyword(s):  
Supply Chain ◽  
Performance Evaluation ◽  
Performance Measurement ◽  
Evaluation Framework ◽  
Facilities Management ◽  
Structured Interviews ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose The performance of the facilities management supply chain (FMSC) in the hotel sector is challenged by the diverse nature of parties involved, their relationships and the flows of services and products. Although performance measurement systems have been endorsed by researchers worldwide as a mechanism to evaluate and improve performance, there seems lack of mechanisms to evaluate the FMSC performance in hotels. Hence, this paper aims to develop a framework that would enable to evaluate FMSC performance in hotels. Design/methodology/approach A case study strategy was used, where 3 five-star hotels in Sri Lanka were studied for the purpose. The data was collected through semi-structured interviews conducted with 21 professionals involved in FMSC and through document reviews. A content analysis was performed and the framework was developed. This was validated with 3 subject matter experts in the field. Findings The study findings revealed that the FMSC process is different from manufacturing and service supply chain (SC) processes as it comprises both product and service elements and incorporates internal, as well as external customers. The developed FMSC process comprises seven sub-processes as follows: delivery of products, delivery of services, sourcing, make/fulfil, delivery of FM services and products, receipt of FM services and receipt of products by customers. Based on the derived FMSC process and the key activities, 38 key performance indicators were developed and used in the framework to evaluate the performance of FMSC. Originality/value The developed performance evaluation framework is expected to facilitate performance measurement of the SC and enhance its performance. Further, it would enhance cooperation among FMSC partners and assist in achieving FMSC excellence.

scholarly journals Does engaging in corporate social responsibility activities influence firm performance? The moderating effects of risk preferences and performance measurement systems

2021 ◽  
Vol 59 (13) ◽  
pp. 15-37
Author(s):  
Joanna Ho ◽  
Cody Lu ◽  
Lorenzo Lucianetti
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Performance Measurement ◽  
Risk Preferences ◽  
Economic Benefits ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
Corporate Social

PurposeThis paper aims to examine whether and how two firm-level factors jointly moderate the relation between corporate social responsibility (CSR) activities and firm performance: (1) the “alignment” between a firm's CSR activities and risk preferences and (2) performance measurement systems (PMS).Design/methodology/approachUsing survey responses from top managers of private Italian companies and matching archival data on the financial performance of these companies, the authors show that the positive effect of CSR activities on firm performance is contingent upon CSR–risk alignment, which creates competitive advantages, and the extent to which the firm's PMS are supportive of its strategic initiatives.FindingsThe findings suggest that to extract economic benefits from CSR activities, firms must align CSR activities with their risk preferences and rely on PMS to overcome the causal ambiguity between CSR activities and competitive advantage.Originality/valueOverall, this study contributes to both the CSR–firm performance and consequences of PMS literature and holds significant practical implications.

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.

Knowledge assets, capabilities and performance measurement systems: a resource orchestration theory approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaveh Asiaei ◽  
Zabihollah Rezaee ◽  
Nick Bontis ◽  
Omid Barani ◽  
Noor Sharoja Sapiei
Keyword(s):  
Performance Measurement ◽  
Corporate Performance ◽  
Equation Modeling ◽  
Knowledge Assets ◽  
Content Type ◽  
Knowledge Resources ◽  
Measurement Systems ◽  
Resource Orchestration ◽  
Performance Measurement Systems ◽  
The Relationship

Purpose The pivotal role of knowledge management (KM) and its extensive implications have been debated in the academic literature with insufficient focus on its link to particular organizational control mechanisms such as performance measurement systems (PMS). To bridge this gap and building on resource orchestration theory, this paper aims to investigate the relationships between KM factors, PMS and corporate performance. Design/methodology/approach Based on a survey data set of 92 listed companies in Iran, the framework and hypotheses were tested using structural equation modeling (SEM) based on partial least squares (PLS). Findings The SEM-PLS results indicate that knowledge assets are significantly associated with both PMS and corporate performance while knowledge process capabilities (KPC) are not significantly associated with PMS and corporate performance. This study also shows that PMS mediates the relationship between knowledge assets and corporate performance. Practical implications The results suggest that the use of appropriate management control systems plays an effective role in synchronizing, aligning and orchestrating a company’s various knowledge resources, which, in turn, can lead to superior overall performance. Originality/value Building on a unique synthesis of resource orchestration theory and the knowledge-based view of the firm, the results of this study provide the first empirical evidence on how PMS intervenes in the relationship between knowledge resources (knowledge assets and KPC) and corporate performance.

Assessing performance-use preferences through an institutional logics lens

2019 ◽  
Vol 32 (1) ◽  
pp. 2-20
Author(s):  
Benard Ngoye ◽  
Vicenta Sierra ◽  
Tamyko Ysa
Keyword(s):  
Public Sector ◽  
Performance Measurement ◽  
Institutional Logics ◽  
Content Type ◽  
The Public ◽  
Measurement Systems ◽  
Cognitive Frames ◽  
Public Market ◽  
Theoretical Predictions ◽  
Performance Measurement Systems

PurposeThe purpose of this paper is to examine the influence of shared cognitive frames, in particular, that of institutional logics, on the deployment and use of performance measurement systems (PMSs) in the public sector.Design/methodology/approachUsing novel priming techniques derived from behavioral and social psychology, three institutional logics – the public, market-managerial and professional logics – are differentially surfaced in three independent experimental groups. The influence of these primed institutional logics on performance measurement use preferences are then empirically assessed using appropriate analysis of variance techniques.FindingsContrary to theoretical predictions, the paper reveals logic congruence regarding some uses of PMSs in the public sector, and divergence regarding others. Individuals applying a public logic were more likely to propose performance measurement use for strategic planning or strategic alignment; while those applying a professional logic were more likely to propose performance measurement use for learning, compared to otherwise primed individuals.Research limitations/implicationsConsidering the sample size and the novelty of the priming tools, it is feasible that other potentially significant effects may have been missed.Originality/valueThe paper addresses a gap in literature regarding the influence of shared cognitive frames on performance measurement use in public sector organizations. The paper further presents priming techniques embedded within an experimental design as an appropriate method for the micro-level study of attitudes, preferences and judgments in the public sector.

Performance measurement in smart city governance: a case study of an Egyptian city council

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Loai Ali Zeenalabden Ali Alsaid
Keyword(s):  
Performance Measurement ◽  
Smart City ◽  
Performance Metrics ◽  
City Council ◽  
Content Type ◽  
Measurement Systems ◽  
Multi Level ◽  
City Governance ◽  
Performance Measurement Systems

PurposeThis study seeks to explore the powerful role(s) of institutionalised performance measurement systems or metrics in smart city governance in a politically and militarily sensitive developing country.Design/methodology/approachThis study extends the application and contribution of a multi-level institutional framework to previous management accounting literature on the potential relationship between performance measurement and smart city governance. The value of utilising a multi-level framework is to broaden and deepen theoretical analyses about this relationship to include the effect of political pressure from the military regime at the macro level on the institutionalisation of a performance measurement system at the micro-organisational level. Taking the New Cairo city council smart electricity networks project (Egypt) as an interpretive qualitative single-case study, data collection methods included semi-structured interviews, direct observations and documentary readings.FindingsPerformance measurement systems or metrics, especially in politically and militarily sensitive smart cities, constitutes a process of cascading (macro-micro) institutionalisation that is closely linked to sustainable developments taking place in the wider arena of urban policies. Going a step further, accounting-based performance metrics, arising from political and military pressures towards public-private collaborations, contribute to smart city management and accountability (governance). Institutionalised measurement systems or performance metrics play a powerful accounting role(s) in shaping and reshaping political decisions and military actions in the city council.Originality/valueTheoretically, this study goes beyond the cascading institutionalisation process by arguing for the powerful role(s) of institutionalised accounting and performance measurement systems in smart city decision-making and governance. Empirically, it enriches previous literature with a case study of a developing Arab Spring country, characterised by an emerging economy, political sensitivity and military engagement, rather than developed and more stable countries that have been thoroughly investigated. It is also among the first politically engaged accounting case studies to highlight public-private collaborations as a recent reform in public sector governance and accountability.

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.

ADS tour operators’ perspective of the Chinese tourism market and sustainable strategies for developing the Auckland city destination

2015 ◽  
Vol 1 (3) ◽  
pp. 254-268
Author(s):  
Claire Liu ◽  
John S. Hull
Keyword(s):  
New Zealand ◽  
Design Methodology ◽  
Code Of Conduct ◽  
Exploratory Research ◽  
Structured Interviews ◽  
Chinese Market ◽  
Content Type ◽  
Sustainable Operation ◽  
Market Operation ◽  
Qualitative Responses

Purpose – The purpose of this paper is to report the findings of an exploratory research paper undertaken in Auckland, New Zealand which focused on the Approved Destination Status (ADS) inbound tour operators’ understanding of the Chinese market and their strategies for developing Auckland as a sustainable destination. Design/methodology/approach – Semi-structured interviews were conducted with ten managers out of the 25 registered ADS inbound tour operators. The qualitative responses were coded and analysed using pattern identification and categorisation of emergent themes. Findings – The findings profile New Zealand ADS inbound operators, summarise their knowledge of the Chinese market in terms of visitor expectations and characteristics, present the operator’s perceptions of Qualmark quality accreditation scheme and ADS Code of Conduct, and demonstrate the quality management initiatives they have developed in addition to addressing the issues within the Chinese market operation. Originality/value – The study provides implications for destination marketers and tour operators in terms of the sustainable operation of the growing Chinese market.

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