From Financial Measures to Strategic Performance Measurement System and Corporate Sustainability: Empirical Evidence from Slovakia

Abstract

(ProQuest: ... denotes formulae omitted.)IntroductionThe main aim of research was to determine the effect of the selected parameters of strategic performance measurement and management on the overall business performance and through sustainable development composite index to determine its impact on business performance of Slovak industrial enterprises.In our research we analyze the selected concepts of strategic and sustainable business performance measurement and management. Operating with an online questionnaire we focus on the use of the selected methods of strategic and sustainable performance measurement and management for various industries in Slovakia. The main aim was to find out the key methods of strategic business performance measurement and management with positive effect on better business performance. The first stage of primary research presents the selected sample of Slovak enterprises along with their online questionnaire focused on the use of the selected parameters of performance measurement. The emphasis is on the investigation of the impact these parameters have on the overall business performance measured by ROE. In the second phase of research, we focus on exploring the issues of measuring corporate sustainability through a sustainable development composite index in a particular manufacturing enterprise and its impact on performance. The conclusion contains the assessment of achievements and the identification of mutual relationship and strategic performance measurement system and one of the ways to measure corporate sustainability. In this paper we publish the most significant results of our research in detail.1.Literature reviewFor several years, measuring corporate performance has been in the centre of attention not only in the academic field but also in business area. New approaches to corporate performance which support traditional indicators have been preferred for many years. Measuring corporate performance has been studied by many authors from different points of view: the relationship of strategy and strategic orientation with business performance (Morgan, Strong, 2003), the view on strategic measurement performance system through strategic agenda and decision-making as a result of formulating or reformulatign strategy (Bisbe, Malagueno, 2012), the effect of strategic measurement performance system on the important attributes of the process of formulating business strategy (Gimbert et al., 2010; Mentel & Brozyna, 2015), the effect of the Balanced Scorecard (BSC) concept and its importance as a strategic tool for measuring and managing business and management performance (Knapkova et al., 2014), the effect of strategic performance measurement system of human resources and corporate results (Bento, White, 2014), the relations among customer satisfaction, customer loyalty and financial performance of a commercial bank (Belas, Gabcova, 2016), customer satisfaction in banking business and its importance for financial performance of a commercial bank (Koraus et al., 2015), tax revenue administration and its process model for Slovakia's economic performance (Dobrovic, Koraus, 2015), strategic business performance management on the base of controlling and managerial information support (Zamecnik, Rajnoha, 2015). Other study indicates there is a positive significant relationship between management tools and techniques utilization and organizational performance (Afonina, 2015). Stefko et al. analyzed prices as a key competitive factor in the steel industry for Slovakia and Poland (Stefko et al., 2012). Another research was focused on business performance in the scope of investment measurement and management using investment effectiveness evaluation methods. Research results confirmed the assumption that the use of investment valuation methods is limited by foreign ownership of company and certain methods caused better business performance (Rajnoha et al., 2016). Similar study is dedicated to process performance measurement in Czech companies (Tucek et al. …