Facilitating performance measurement and management through digital business strategy

Abstract

PurposeThis study aims to focus on the connection between digital business strategy and performance measurement and management (PMM).Design/methodology/approachThe implications of digital business strategy and its dimensions with regard to PMM were investigated through a survey. The survey questionnaire provided 202 valid cases with a focus on senior management of small- and medium-sized enterprises. Strategic dimensions were identified from the literature on management in the context of digitalization to build a theoretical framework that highlights the mechanisms that companies should focus on when managing and implementing digital technologies successfully.FindingsThe aspects that comprise digital business strategy are grouped into five major dimensions: technological understanding, goals, resources, management and responsibilities. The study reveals a direct and positive relationship between goals and management related to digital business strategy and PMM.Research limitations/implicationsThe study contributes to the existing PMM literature in the context of digitalization.Practical implicationsThe results indicate that if a company has excellent goals and management with regard to its digital business strategy, it uses PMM in a more successful and effective way.Originality/valueTo the best of the authors’ knowledge, this study is among the first to examine PMM in terms of managing digital business strategy by trying to determine the extent to which the elements of digital business strategy can be integrated effectively into PMM.