How Can SMEs Succeed in The Vuca World: The Role of Performance Measurement and Management in The Challenging Business Climate

Abstract

The world is changing. The changes are happening at an increasingly faster pace than ever. Organizations are facing significant impacts and must revisit their strategies outlined in the Performance Measurement and Management (PMM) System more often to ensure business sustainability. The primary objective of this conceptual research is to study how Small-Medium Enterprise (SME) industry operating in Penang is deploying PMM in the current high volatility, uncertainty, complexity, and ambiguity (VUCA) environment. This research applies a mixed mode research approach with a focus on in-depth case studies and group discussions with the managerial team in the organization as well as the employees in the selected company. A comprehensive literature review will be conducted as part of the analytical study to analyze the academic literature on the relevant topic that was published in the last 5 years. The goal of the analytical study is to gather statistical data and information on the approaches and models that were adopted in the industry. An empirical study will be carried out where the goal is to gain true insight into underlying reasons and motivations for the decision-making process associated with the PMM system within the organization in the SME industry. The overall objective of this research is to constitute several immense contributions, which include conceptual, empirical, and methodological contributions. This research is targeted to provide a reference to SME practitioners and managerial teams with strategic direction when developing PMM in challenging situations. The findings of this research can also be served contextually as a framework that provides another view of how the SME industry perceives PMM in the VUCA environment.