Sanna Pekkola

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...

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...

Breaking inside the black box: towards a dynamic evaluation framework for regional innovative capability

Alongside theories of innovation, different measures of innovativeness and innovative capability have been developed. However, there are problems with the existing evaluation tools, especially when considering the dynamics of innovation processes. The measurement of the innovativeness of regions is particularly challenging. This paper describes recent changes in regional innovation policy models. It is argued that these policy models demand new tools for evaluating regional innovative capability. This paper tries to overcome some of the problems of the current evaluation tools. It outlines a framework for the network-based innovative capability evaluation matrix for evaluating and developing regional innovation policies. Copyright , Beech Tree Publishing.

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...

Measuring performance of a service system – from organizations to customer-perceived performance

Purpose – The purpose of this paper is to investigate the implications of the networked and open nature of the service business on performance measurement. The literature has acknowledged that the value of service is increasingly produced by service systems, but solutions for measuring the performance of a service system are still lacking. Design/methodology/approach – The paper constructs a conceptual framework for capturing performance of a service system by combining ideas from the service management and performance measurement literatures. This framework is then applied in two service systems, one from the public sector and one from the private sector. Two different service systems provide complementary views on the phenomenon of service system performance and call for distinctive measurement solutions. In both cases, interviews, series of workshops and an analysis of documentation of the prevailing measurement systems were conducted when applying the framework. Findings – The results indicate that th...

Managing a network by utilizing performance measurement information

Purpose – The purpose of this paper is to examine how different network members utilize and use network‐level performance measurement information. This is an important approach when discussing the management and development of a network by utilizing a performance measurement system.Design/methodology/approach – The study is a single‐case study, where a collaborative network forms the case. The data of the study have been gathered from an action research process of network performance measurement system design and its implementation phase in 2009, interviews in 2010, and discussions with the interviewees in 2012 to re‐evaluate the results.Findings – The results of the study reveal that the use of the network‐level performance measurement system increased communication, trust, and commitment in the whole network, as well as in a single reselling unit. The performance measurement information also helped the companies create better alignment with their network partners.Practical implications – The paper prese...

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.

Interaction challenges in leadership and performance management in developing a network environment

Purpose – Network‐level collaboration between different organisations is acknowledged to be one of the success factors in achieving a competitive advantage in business. However, contemporary business environments demand more suitable managerial tools and practices at both organisational and network levels. The purpose of this paper is to summarize approaches to managing and developing network‐level processes. Design/methodology/approach – The empirical evidence is based on a multiple case study on leadership and performance management in a network environment. The empirical data were gathered in 18 semi‐structured interviews at the case companies. The cases were chosen because they represent different types of networks, which make it possible to identify common factors in leadership and performance management regardless of the specific characteristics of any certain type of network. Findings – The findings of this study support the assumption that the networked way of doing business needs a shared management perspective that discusses and leads operations of the network. Furthermore, there is little point in designing measurements and other managerial tools in the organisations, if the culture and leadership behaviour are not committed to changes and collaboration. Research limitations/implications – Future studies will include in a wider way the roles of networking when more individuals are engaged in the action and the objectives of the participants are achieved. Although the creation of the network is an on‐going process, the preliminary results are promising. Practical implications – The study reveals significant requirements that contribute to successfully establishing collaborative networking, and the development of knowledge sharing, leadership and managerial procedures and systems. Originality/value – The potential value of this research paper is in its function as a summary for organisation scholars looking for approaches to manage and develop network‐level processes. Even though the networking trend itself has received a lot of researcher attention, collaboration between different organisations influenced by a combination of transformational leadership and performance management has not been much noticed.

Performance measurement implementation in a knowledge-based public organisation

Numerous papers on measurement systems in public organisations have appeared in the recent years. Measurement systems in knowledge-based organisations is another popular topic in the literature. The development and implementation of management systems in knowledge-based public organisations differs considerably from the way they are realised in the production-oriented sector. This case study examines the implementation of a Performance Measurement System (PMS) in a knowledge-based public organisation. The study comprises of information that emerged during the PMS development in this organisation. The aim is to pinpoint those success factors especially critical from the point of view of the implementation of performance measurement.