Optimizing SME performance through KPI utilization

Abstract

Purpose. This research aims to investigate how small and medium-sized enterprises (SMEs) can strategically leverage key performance indicators (KPIs) to enhance their performance and competitiveness in the dynamic business landscape. Through a multifaceted research methodology, including secondary data analysis, case studies, comparative analysis, and future trends analysis, the study seeks to address the specific challenges faced by SMEs and provide actionable insights for optimizing performance through KPI utilization. Results. The findings of this research reveal the intricacies of SME performance challenges, ranging from financial constraints to operational complexities. Through a comprehensive examination of theoretical foundations and real-world case studies, the study demonstrates successful strategies used by SMEs in effectively utilizing KPIs. The comparative analysis identifies patterns and distinctions in KPI deployment across industries, enriching the understanding of tailored approaches. The forward-looking future trends analysis anticipates advancements in data analytics, artificial intelligence, and technological tools that will shape the landscape of SME performance measurement. Scientific novelty. This research contributes to the field by offering a nuanced exploration of challenges faced by SMEs and the transformative potential of KPIs within their unique operational environments. The comparative analysis and future trends exploration add a novel dimension, providing a forward-looking perspective on the evolving landscape of KPI utilization in SMEs. The research pioneers an investigation into emerging technologies and methodologies, positioning itself at the forefront of anticipating future trends in SME performance measurement. Practical value. The practical value of this research lies in its provision of actionable insights for SME leaders, policymakers, and researchers seeking to enhance the resilience and competitiveness of SMEs. By synthesizing theoretical foundations with real-world examples, the study offers practical guidance on addressing challenges and optimizing performance through KPI utilization. The exploration of tools, technologies, and future trends equips SMEs with the knowledge needed to navigate the intricate business landscape effectively.