Impacts of Industrial Revolutions on the Enterprise Performance Management: A Literature Review

Abstract

Listen

Translate article

Purpose - Developments in the industrial revolutions also influence enterprises which are indispensable for commercial life, as well as social and cultural life. These changes which occur in the enterprises about production methods and technologies with the revolutions, naturally affect all the processes of the enterprises, and the methods and tools used also change. As structures of enterprises change the ways in which their performances are evaluated, inevitably change. The methods of evaluating the performance of progressively growing businesses also have to change inevitably and get more complicated. It is obvious that enterprises need to evaluate their performance in order to survive and reach business excellence. Enterprise performance management is an important tool which is driven by strategies of the enterprises and pushes the enterprises to use their resources effectively at the same time. Therefore in this study, interaction of enterprise performance evaluation methods with the facts up to the Industry 4.0 is discussed in the historical development process. Method - Literatures on the enterprise performance evaluation methods up to the 2010 and the industrial revolutions up to the Industry 4.0 were researched and the relations between the facts have been tried to be established. Findings - When the results are evaluated, developments in the field of enterprise performance management have taken place with the first, second and third industrial revolutions. These developments have gained momentum especially in the Industry 3.0 and the most known and the most used methods in the field of enterprise performance evaluation have emerged in this period. Limitations - In this study, the effect of industrial revolutions on the field of enterprise performance management is evaluated by examining the relationship between industrial revolutions and enterprise performance evaluation methods. In future studies, this impact can be evaluated by examining the relationship between the different facts in the field of enterprise performance management and the industrial revolutions. Implications - Industrial revolutions have profoundly affected the field of enterprise performance management as well as every area of life and will continue to affect. It is excepted to be used the artificial intelligence techniques which form basis of the fourth industrial revolution, in the future studies at the field of enterprise performance management. Originality - The significance of this paper is examination of the impacts of industrial revolutions up to the Industry 4.0 on development of the field of enterprise performance management. This study will pave the way for better predictions about how the fourth industrial revolution will create a trend in the field of enterprise performance management.