Abstract
Business performance management (BPM) is an instrument that allows the fulfillment of business objectives and the improvement of competitiveness in small and medium-sized enterprises (SMEs). When BPM is implemented and measured, it can improve the sustainability and competitiveness of the enterprise. Despite its potential benefits, the possibilities of BPM in SMEs are often underestimated due to the lack of resources (mainly personal or financial). The goal of this paper is to introduce a framework for the implementation of BPM in Slovak SMEs based on research on transportation SMEs. To this end, certain steps that support the efficient introduction and use of BPM in these SMEs will be proposed. Our proposal regarding the performance of BPM is based on the findings of previous research studies along with the results of own questionnaire surveys and personal meetings/interviews with owners/managers of transportation SMEs. The results of this research shows that SMEs are generally not familiar with BPM and how the system is used. Essential elements to implement BPM are lacking in SMEs, and although the BPM system might help these firms improve their competitiveness, SMEs remain uniformed about the advantages of BPM. The proposed framework of BPM implementation in this paper can be used to inform SMEs and to assist them in their decisionmaking processes regarding the application of this system.
Highlights
For small and medium-sized enterprises (SMEs) competitiveness is a complex challenge which encompasses multiple areas
As business performance management (BPM) implementation seems better suited for the development for large companies, the literature presents only limited research in the context of SMEs (Pekkola et al, 2016), while no studies focusing on a specific area of SME business have been published at all
This paper aims to prepare the proposal of a model for BPM implementation and the use of BPM in Slovak SMEs based on the example of transportation SMEs
Summary
For SMEs competitiveness is a complex challenge which encompasses multiple areas. One option of how to improve competitiveness is the use of the processes of business performance management (BPM). Studies by Glaister et al (2008), Hernaus et al (2011), Pekkola et al (2016), Tuček (2015), and others have confirmed the relationship between strategic planning and business performance In this regard, the process of BPM can be seen to consist of various issues: the identification of performance measures (Bianchi et al, 2015), implementation of measures into managerial decisions (Bititci et al, 2011), collection of data (Campos et al, 2017), availability of qualified staff (Whitford & Coetsee, 2006), and readiness of owners/managers to communicate results within an enterprise. The process of BPM can be seen to consist of various issues: the identification of performance measures (Bianchi et al, 2015), implementation of measures into managerial decisions (Bititci et al, 2011), collection of data (Campos et al, 2017), availability of qualified staff (Whitford & Coetsee, 2006), and readiness of owners/managers to communicate results within an enterprise These as well as other issues are necessary for the successful implementation of BPM (Frolick & Ariyachandra, 2006). The research study presented in this paper sought to provide a tool that might help entrepreneurs in SMEs with the process of BPM implementation
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