Concept of Inclusive Optimal Performance (IOP): Theoretical and Conceptual understanding on the inclusive relationship between Internal Simultaneous Performance (ISP) and External Simultaneous Performance (ESP)

Abstract

Small and Medium Enterprises play a significant role in economic well-being of a society, but unfortunately there is lack of proper structure and system for application of performance measurement in most of the SMEs. Hence, an inconsistency amongst the performance measures can be observed. The following paper focuses upon distinctive nature of small and medium business organizations (SMEs) and proposes a framework for effective performance measurement with respect to (SMEs). This research aims to provide such a framework for performance measurement that can ensure a balance between internal and external performance measures by introducing the concept of inclusive optimal performance (IOP) as a resultant of inclusive working between internal simultaneous performance (ISP) and external simultaneous performance (ESP). The need for inclusive strategic approach to internal and external performance factors has arrived primarily because of one sided competitiveness is produced due to exclusive strategic approach to inclusive and external performance factors of organization. In order to explore the legitimacy of the depicted argument the following research is based on concept review methodology of literature review through which this research assess the extensive literature with respect to performance measurement systems within SMEs. Through the integration of the psychology-oriented constructs of the internal and external locus of control theory, this research stem the inclusive nature and working of internal and external factors of performance analogy as a basis of the proposed framework that can be applied to ensure effective performance measurement at SMEs.