Abstract
Purpose The literature highlights the relevance of performance measurement and management system in small and medium enterprises (SMEs) to face the current competitive environment. However, a number of studies investigate how performance measurement and management system is effective for evolving and how contingency factors could influence this change. Newer experiences are sporadic and rarely investigated by researchers and practitioners. The purpose of this study is to identify the feasible evolutionary path of performance measurement and management system in leading SMEs to respond to current business challenges. Furthermore, it aims to contribute to the understanding of the role of key contingency factors influencing this evolution. Design/methodology/approach A longitudinal case study, based on retrospective and real-time investigations, is performed to investigate the primary evolutions of the performance measurement and management system and its key determinants. Findings The findings highlight two evolution paths, increasing the maturity of performance measurement. The first path highlights a strong command and control of performance management; the second path shows a democratic and participative of performance management. Moreover, management information system, organizational culture and management style are highlighted as key contingency factors in the change of performance management. Originality/value The authors contribute to knowledge in performance measurement field, showing how the efforts for developing performance measurement and management system in a leading SME could determine two different evolutionary paths. Furthermore, the paper describes the increasing role of organizational culture, management style and management information system in performance management evolution, as well as the relevance of online chats and social media in performance management activities.
Highlights
The adoption of performance measurement and management system (PMMS) is recognized essential in all organizations (Bititci et al, 2012; Franco-Santos et al, 2012; Piscitelli and Mancini, 2018)
AA has about 400 stores located in major cities including London, Paris and Barcelona, and is the best performer in its field, exhibiting the performance measurement and management system trend as per Bititci et al (2012)
The Research & Development (R&D) department has international students participating in research projects to create new products and services and promotes other initiatives with continuous interactions in a multicultural environment
Summary
The adoption of performance measurement and management system (PMMS) is recognized essential in all organizations (Bititci et al, 2012; Franco-Santos et al, 2012; Piscitelli and Mancini, 2018). It is defined as a holistic, balanced and dynamic system able to support the decision-making process through a set of performance measurement activities, e.g. gathering, elaborating and analysing performance (Neely et al, 2001), as well as performance management activities, e.g. communicating, learning and improving performance (Sardi et al, 2018; Smith and Bititci, 2017; Willis et al, 2018).
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