Patrizia Garengo

Performance Measurement: Challenges for Tomorrow

This paper demonstrates that the context within which performance measurement is used is changing. The key questions posed are: Is performance measurement ready for the emerging context? What are the gaps in our knowledge? and Which lines of enquiry do we need to pursue? A literature synthesis conducted by a team of multidisciplinary researchers charts the evolution of the performance-measurement literature and identifies that the literature largely follows the emerging business and global trends. The ensuing discussion introduces the currently emerging and predicted future trends and explores how current knowledge on performance measurement may deal with the emerging context. This results in identification of specific challenges for performance measurement within a holistic systems-based framework. The principle limitation of the paper is that it covers a broad literature base without in-depth analysis of a particular aspect of performance measurement. However, this weakness is also the strength of the paper. What is perhaps most significant is that there is a need for rethinking how we research the field of performance measurement by taking a holistic systems-based approach, recognizing the integrated and concurrent nature of challenges that the practitioners, and consequently the field, face.

Dynamics of performance measurement and organizational culture

Purpose – This research paper aims to model the dynamic relationship between performance measurement, management styles and organisational culture, in order to develop a better understanding of the causal linkages between these three areas.Design/methodology/approach – The related literature on performance measurement, management control systems and management information systems, in the context of organisational culture, is examined and a framework for mapping the interplay of the three areas is developed. The research is based around five case studies where performance measurement systems were implemented in action research programmes, using identical implementation methods, by the same research team. The use of the performance measurement systems was then observed over a period of time in relation to the implementation lifecycle, changes to management style and organisational structure over time. The dynamic relationships were then mapped using the framework developed. Patterns were observed, which led...

Towards a contingency approach to performance measurement: an empirical study in Scottish SMEs

Purpose – The literature emphasizes the important role performance measurement systems (PMS) play in supporting organizational development in small and medium enterprises (SMEs). However, there are very few empirical and theoretical studies on the factors that influence performance measurement practices in SMEs. This paper aims to contribute to filling this gap using both theoretical and empirical approaches.Design/methodology/approach – A literature review and interviews were used to identify four key contingency factors for PMS in SMEs. A qualitative research design involving a multiple case study methodology was carried out to investigate how these factors influence performance measurement.Findings – The relationship between the contingency factors and performance measurement were formalized in four theoretical propositions. First corporate governance structure is one of the main factors influencing performance measurement adoption and use. Second, advanced information practices and advanced behaviours...

Lean manufacturing in developing countries: evidence from Indian SMEs

India is emerging as a new manufacturing destination and many companies are seeking ways to increase the value of their products and services by eliminating unnecessary processes and wasteful practices from their production systems. The powerful lean manufacturing approach that has proved successful as an operations model in developed economies, as well as in some large Indian companies, is now increasingly being recognised by the small- and medium-size enterprises (SMEs). The purpose of this research is to investigate the adoption of lean production in India and to examine the lean practices deployed by the SMEs. The case study methodology was utilised and this article presents the findings of four SMEs in India that have implemented lean strategy to drive significant improvement in manufacturing performance.

The development of SME managerial practice for effective performance management

Purpose – This paper aims to investigate the gap between theory and practice in performance management in small and medium‐sized enterprises (SMEs) and analyse it in the light of specific SME characteristics and needs, to identify how SMEs can develop their managerial practice for effective performance management.Design/methodology/approach – The design of the study is based on literature review and multiple case studies. Combining both approaches and investigating a spectrum of 37 European SMEs through 232 semi‐structured and face‐to‐face interviews with managers helped the authors to provide theoretical and empirical evidence to offer a more effective performance management process for SMEs.Findings – The paper found that SMEs engage with a four‐stage performance management process, although there are some gaps between their practice and the complete process as recommended in literature. SMEs seem to be more focussed on internal and short‐term planning, whereas they pay less attention to long‐term plann...

The interplay between performance measurement, organizational culture and management styles

It is generally agreed that businesses perform better if they are managed through formalised, balanced and integrated performance measures. Reports on some case studies which were part of a study to explore the dynamics and relationships between performance measurement, organizational culture and management styles. A key finding of the work is that organisational culture and management style seems to be interdependent throughout the lifecycle of the performance measurement system.

A review of decision-support tools and performance measurement and sustainable supply chain management

In recent years, interest on sustainable supply chain management (SSCM) has risen significantly in both the academic and business communities. This is confirmed by the growing number of conferences, journal publications, special issues and websites dedicated to the topic. Within this context, this paper reviews the existing literature related to decision-support tools and performance measurement for SSCM. A narrative literature review is carried out to capture qualitative evidence, while a systematic literature review is performed using classic bibliometric techniques to analyse the relevant body of knowledge identified in 384 papers published from 2000 to 2013. The key conclusions include: the evidence of a research field that is growing, the call for establishing the scope of current research, i.e. the need for integrated performance frameworks with new generation decision-support tools incorporating triple bottom line (TBL) approach for managing sustainable supply chains. There is a need to identify a wide range of specific industry-related TBL metrics and indexes, and assess their usefulness through empirical research and case-base analysis. We need mixed methods to thoroughly analyse and investigate sustainable aspects of the product life cycle across the supply chains, through empirical evidence, building and/or testing theory from and in practice.

Managerial processes: business process that sustain performance

Purpose – It is argued that whilst operational and support processes deliver performance presently, it is the managerial processes that sustain performance over time. The purpose of this research paper is to better understand what these managerial processes are and how they influence organisational performance.Design/methodology/approach – The theoretical background is reviewed covering literature on the subject of business process management, resourced‐based view (RBV), dynamic capabilities and managerial processes. A research framework leads to qualitative case study‐based research design. Data are collected from 37 organisations across Europe, classified according to their performance.Findings – Findings suggest that the five managerial processes and their constituent managerial activities, identified through the empirical research, influence performance of organisations as an interconnected managerial system rather than as individual processes and activities. Also, the execution and maturity of this m...

Organizational capability in SMEs: Performance measurement as a key system in supporting company development

Purpose - The aim of this study is to investigate both the path taken by companies in order to survive in a competitive environment and the factors that have favoured or limited their development. Design/methodology/approach - The study was carried out using a retrospective approach. Empirical evidence was gathered using a descriptive survey and data collected during previous research programs involving 100 SMEs located in the Veneto region (Italy). Findings - The findings show that a lack of organizational capabilities is one of the main factors limiting development in SMEs. The companies investigated appear to follow similar paths and performance measurement systems (PMS) could play a key role as a potential driver of managerial development in SMEs. Research limitations/implications - The study refers solely to Italian SMEs located in the Veneto region. Conclusions on the role played by PMS as a system for supporting development were based on a theoretical study; an Practical implications - The study emphasizes the important role played by organizational capability for favouring the competitiveness and survival of SMEs. The study indicated that in SMEs managerial developments usually come later, following changes in strategy. Firms could prevent managerial crisis by implementing managerial systems. Originality/value - Traditionally the growth of SMEs is measured by turnover and number of employees. This study highlights the importance of investigating not only quantitative, but also qualitative growth to analyse development in SMEs. PMS is presented as a key managerial system that can support qualitative growth and promote the competitiveness of SMEs.

From ISO quality standards to an integrated management system: an implementation process in SME

The effective implementation of an integrated management system (IMS) is increasingly recognised as essential for all types of organisations facing todays turbulent and competitive environment. Literature stresses that most companies could benefit from moving from the mere adoption of the International Standards Organisation (ISO) quality standards to the implementation of an IMS linking strategy and operations by means of an interrelated set of management tools. However, despite the wide range of investigated issues, scholarly literature still mainly focuses upon large organisations, and although much progress has been made in recent years, many questions on how an IMS could be implemented in small- and medium-sized enterprises (SMEs) remain unanswered. In order to contribute to this research gap, this paper investigates the process characterising the effective implementation of an IMS in a leading SME and the main factors enabling the changeover from the adoption of ISO quality standards to the implementation of an IMS. The implementation process identified here is synthesised in a framework which can support the understanding and the implementation of an IMS in SMEs.