Juhani Ukko

Defining and measuring productivity in the public sector: managerial perceptions

Purpose – The paper aims to identify what productivity means in the public sector, how it is measured and how it should be measured and improved, according to municipal authorities in managerial positions.Design/methodology/approach – The approach is both theoretical and empirical. The first part is a literature review of research concerning public sector productivity. The second part presents findings of empirical research that is based on interviews and workshops with municipal authorities representing: special healthcare services; basic healthcare and social services; and educational services. The research has been carried out in the Paijat‐Hame region, Finland.Findings – According to the results, there is a certain mismatch between perceptions concerning productivity and the potential that lies in this concept as a functional tool in the public sectors development efforts. Public sector productivity cannot be developed and discussed without taking into consideration the issue of effectiveness.Researc...

A conceptual framework for the measurement of innovation capability and its effects

Purpose – The purpose of this paper is to clarify the concept of innovation capability and to show how the linkage between innovation capability and performance measurement can be formed.Design/methodology/approach – The study is based on current literature of innovation capability and performance measurement and matching these two to find out how the measurement of innovation capability should be organized.Findings – The paper describes the concept of innovation capability and presents a performance measurement framework for the measurement of innovation capability and its effects. As a result, a conceptual framework with five perspectives for measuring the relationship between innovation capability and business performance is presented. Also, the link between innovation capability and an organizations business performance is disclosed.Originality/value – The paper shows a way forward of how to define measures of business performance in such a way that they are led from the development of innovation cap...

The relationship between innovation capability and performance : The moderating effect of measurement

Purpose – The purpose of this paper is to discuss whether performance measurement moderates the relationship between innovation capability and firm performance. Design/methodology/approach – The study was conducted through a web-based survey in small- and medium-sized enterprises (SMEs). A total of 311 responses were received from a sample of 2,400 randomly selected SMEs. Findings – Consistent with predictions, the link between innovation capability and firm performance is significant in the presence of performance measurement. Performance measurement can thus be used as a tool for improving the performance of SMEs through innovation capability. Practical implications – Using the results of this study, practitioners can improve their innovation capability through performance measurement by taking better account of various aspects. Originality/value – Previous research has studied the effects of performance measurement, but not in the area of innovation management. Previous research has also showed that me...

The impacts of performance measurement on the quality of working life

The design, implementation and use of Performance Measurement (PM) systems have been studied extensively. However, the literature shows little evidence on what kind of impacts PM practises have had on, for example, the performance of the operative level of an organisation. This paper focuses on the impacts PM has had on the Quality of the Working Life (QWL) of employees, for example, their work motivation, learning opportunities, job satisfaction, participation in decision making and reward system. Furthermore, this paper presents how the perceptions of management and employees differ from each other and what the key elements in the implementation process are as regards the accomplishment of positive impacts of PM on the quality of working life. This paper concludes with the underlying factors behind the positive impacts of PM on the quality of working life.

A contingency approach to performance measurement in service operations

Purpose – The purpose of this paper is to investigate the contingency factors affecting performance measurement in the service context. The paper aims to review the literature on performance measurement and synthesize it to a framework that creates a basis for analyzing measurement practices in various kinds of service contexts.Design/methodology/approach – In order to obtain a fresh update to the existing knowledge on the topic, a systematic literature review was carried out. Around 8,000 articles published between 2005 and 2011 were reviewed and as a result 80 papers were chosen for a more detailed examination.Findings – The paper applies a fresh approach to performance measurement in services, increasing generalizability of case study findings. By analyzing a large set of studies, the study identifies contextual factors that affect performance measurement in service operations. The resulting framework acts as a foundation for further research on performance measurement in services.Practical implication...

Designing a performance measurement system for collaborative network

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.,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.,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.,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.,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.

Employees satisfied with performance measurement and rewards: is it even possible?

The motivational influence of performance-related rewards has been highlighted in the earlier literature on Performance Measurement (PM). This paper focuses on the linkage between participation in decision-making and the success of rewarding. The study is quantitative and the empirical evidence is based on a survey that was carried out in eight companies that operated in the manufacturing industry in 2005. To ensure an overall view, the survey was conducted with all employees of the studied companies. On the basis of the statistical analysis, it can be stated that the more autonomy in work that people have, the more successful they perceive the motivational influence of rewarding. The study suggests that companies should pay attention to the autonomy of employees in their work and, thus, ensure the successful use of performance-related rewarding.

Innovation Capability and Its Measurement in Finnish SMEs

The importance of the development of an organisation’s innovation capability for its success is highlighted in current literature. This study provides a comprehensive description of the status quo of Finnish SMEs regarding the different dimensions of innovation capability, expertise, work wellbeing, and the measurement of issues related to innovation capability. The study also clarifies whether the results of the studied issues differ depending on the size of the organisation, the industry and the organisational position. The most important insight of the study is that the perceptions of executives and employees differ significantly with regard to all the studied aspects. The study suggests that both academics and practitioners should focus on the development of new methods and practices for enhancing innovation capability, and especially the measurement of issues related to it.

How to communicate measurement information successfully in small and medium-sized enterprises: a regression model

The role of internal communication has been highlighted in the earlier literature on Performance Measurement (PM). This paper focuses on the predictors that explain the success of the communication of measurement information in Small and Medium-sized Enterprises (SME) operating in the manufacturing industry. The study is based on a survey carried out in eight companies. The results indicate that the quality of information and face-to-face communication are the main predictors of the success of measurement information communication in SMEs. The study suggests that SMEs should invest in the quality aspects of measurement information, in its exactness, reliability, intelligibility and usefulness.

A framework to support performance measurement at the operative level of an organisation

The study focuses on performance measurement at the operative level of an organisation. Factors that improve and facilitate the performance of the operations and employees, and the use of performance measurement are examined. A framework to support performance measurement at the operative level of an organisation has been constructed. The empirical evidence of the study is based on interviews in eight organisations. The findings suggest that there are six factors that have a direct and positive influence on operative level performance measurement. The three most important factors are the linkage of performance measurement to reward, interactive communication, and understanding the linkage between an individuals and the organisations targets.