Enterprise Performance Measurement Research Articles

Impact of Financial Management Practices on Performance Measurement of Small and Medium Enterprises in Tamil Nadu

Small and medium enterprise (SME) development is essential for India’s economic expansion. SME is an important participant in the development of accessories that supports major industries. The current study is focused on the variables impacting performance measurement in SMEs, despite the fact that many small and medium businesses are experiencing significant losses and closures as a result of poor performance. The next goal is to determine the connection between small and medium business performance management and financial management practices. This study uses SME performance measurement as a dependent variable. Risk management, working capital management and credit management are three independent factors that can be used to assess SME financial management practices. The questionnaire that was used for each item was based on the earlier research. A five-point Likert scale was used to score each item scale used in this investigation. Working people in a few districts in South Tamil Nadu, India and used online structured questionnaires to gather data. The present sample size of the study is 157. The statistical data analysis has been carried out employing jamovi 1.8. For factor loading, reliability, sample size, model fit, regression analysis for hypothesis testing and structural education modelling were used. Policymakers and SME entrepreneurs who are familiar with performance measurement of many elements can benefit from the study’s findings. The study found a relationship between SMEs’ performance measurement and financial management practices.

Investigating causality relationship of balanced scorecard, bonus, and managers’ time allocation: An experimental study

This study investigates the causal relationship between a comprehensive reporting system (balanced scorecard — BSC) and managerial time allocation when incentives are involved. The study examines whether managers adjust their time according to different performance areas when both financial and non-financial indicators are used for evaluation and reward. An experimental methodology was employed, involving managers from private and state-owned enterprises in Indonesia. The data were analyzed using analysis of variance (ANOVA). The findings indicate that managers do not spend more time on non-financial areas when a BSC is used, and do not spend less time on financial areas when bonuses are based on both financial and non-financial goals. These results challenge agency theory, which suggests that performance-based incentives align managerial behavior with organizational objectives. The study concludes that BSC and financial incentives do not significantly affect managerial time allocation as expected. Overall, the results of the research support Lipe and Salterio (2000), and Ullrich and Tuttle (2004), but the study also highlights that additional factors may need to be considered to fully understand how incentives and reporting systems influence managerial behavior. This paper contributes to the understanding of performance measurement and incentive systems in Indonesian enterprises by offering ideas for the design of effective management control systems.

Driving sustainable and competitive transition in enterprise performance management and measurement: The changing role of women in the Japanese labour market

ABSTRACT. The objective of this paper is to examine the relationship between sustainable and competitive transition in enterprise performance management and measurement and the changing role of women in the Japanese labour market. The work correlates the proportion of female employees in leadership positions in relation to the sector type, firm age, profits and encouragement of women’s participation in the labour force over six significant periods. The study also examines correlations between the encouragement of women’s participation in the labour force and high productivity, improvement of work-life balance and higher integration of female staff in the workforce. A questionnaire survey was conducted in 152 Japanese companies as part of the research. Non-parametric tests and exploratory data analysis were used for evaluation. The linear-by-linear test was applied to ordinal categories to determine the trend between the proportion of female employees in leadership positions and the encouragement of women’s participation in the labour force. The results indicate that partial changes have occurred as far as women in the Japanese labour market are concerned and confirm that working women are faced with persistent obstacles in terms of higher integration of female staff in the workforce and improvement of work-life balance. A future research direction worth considering is a study focused on other countries in Asia, comparing the findings with this paper.

State-owned Enterprise Performance Measurement Based on the 2016 Malcolm Baldrige Criteria for Performance Excellence (MBCfPE)

PT. XYZ is a state-owned enterprise that contributes to national sugar production. In running its business, the company requires performance measurement to see how far the company has achieved. This study provides an overview of performance measurement with the Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) approach. This study uses a literature review and descriptive analysis. The results of the assessment show that the score achieved by PT. XYZ in 2016 was 415.75 points and was included in the early improvement performance class. Although the results have not been maximized, several assessment categories have important aspects that support the company's performance. The category that dominates and gets the highest rating is the overall Product and Process Results category with 44 points. Meanwhile, the category that has a low rating is Operations Focus for the Operational Effectiveness indicator with a score of 16 points. In the future, PT. XYZ needs to restructure its work system, supply chain management, and improve monitoring and evaluation.

Enterprise Sustainability Performance Measurement in Small and Medium Enterprises in Kenya: Construct Validation Using Confirmatory Factor Analysis

This study sought to validate existing sustainability performance measurement scales in the context of Small and Medium Enterprises (SMEs) in Kenya. The study was cross-sectional. Data were collected through a structured questionnaire from a sample of 221 SMEs drawn from a target population of 517 SMEs using a stratified random sampling strategy. The respondents were apex managers of the sampled SMEs. Valid responses were received from 134 respondents representing a 60.63 percent response rate. Descriptive statistics and confirmatory factor analyses were performed to achieve the study’s objective. From the analysis, four-factor loadings were extracted suggesting that the sustainability performance of SMEs in Kenya could be viewed from a quadruple bottom line perspective, that is, economic, internal processes, environmental and social perspectives. The study confirmed the reliability and validity of the measurement scales. The study, therefore, concluded that sustainability performance measurement in SMEs in Kenya could best be viewed from the integration of environmental, social, internal processes, and economic performance aspects. The study recommends empirical studies in Kenya to integrate the four dimensions in assessing SMEs’ performance

Antecedent of Corporate Entrepreneurial Orientation on the Performance of Small and Medium Manufacturing Enterprises in the Post Covid 19 Era: The Case Nigeria

Even in the post-pandemic period, the Covid-19 pandemic still has a multiplier effect onthe performance of SMEs. As sales revenues dropped, branches were closed, and employees’ jobs and overall performance were impacted negatively around the world. This paper aims to review literature to determine research antecedents on the relationship between firms’ entrepreneurial orientation and manufacturing SMEs' performance in the post-Covid-19 era in Africa and the rest of the developing economies. This is to note the area needed to cover some of the major causes of the variation in this sub-sector of the economy for future research. A literature survey methodology was employed for the current article. Articles were reviewed from sources including journals (Google Scholar, ScienceDirect, Academia, and ResearchGate platform), and ordinary articles that spanned from 2002-2022 to understand the antecedents of research contexts and variables explored. The findings revealed that most studies focused on large-scale manufacturing firms and SMEs and considered external environmental factors like regulation, competition, interest and a few others to explain variation in enterprise performance. Furthermore, the result shows that non-multidimensional measures of enterprise performance were used. Consequently, a new conceptual framework was developed to look at firms’ inward entrepreneurial orientation as the driving factor for organisational performance improvement. The implication of the proposed framework developed is to harness strategies for performance improvement, growth, and survival in a complex and dynamic business environment. Thus, the paper concludes that the way to this development is for SMEs to build capacities that entrench theircorporate entrepreneurial orientation to suit every business situation.

SMA-Technique Strategic Planning, Control and Performance Measurement in Village-Owned Enterprises in Indonesia

This study was conducted to find empirical evidence of a causal relationship between organizational size, market orientation, and strategic planning, control, and performance measurement in the strategic management accounting (SMA) technique of village-owned enterprises in Indonesia. This research is based on contingency theory. The objects of this research are 51 village-owned enterprises in Indonesia. Respondents in this study were administrators (managers) of village-owned enterprises in Indonesia. The research instrument used was questionnaire that developed by Simon and Guilding (2008) for SMA techniques. The hypotheses were tested using SEM – PLS, that is Warppls 6.0. The results showed that market orientation had a significant effect on the development of strategic planning, control, and performance measurement of the SMA technique in village-owned enterprises in Indonesia, while organizational size had no significant effect. Keywords: market orientation; organizational size; strategic management accounting .

Construction of a green development performance index of industrial enterprises: Based on the empirical study of 458 listed industrial enterprises in China

This paper constructs an enterprise green development performance system by integrating green development concept and enterprise performance measurement. Based on the panel data of 458 industrial listed enterprises in China from 2011 to 2018, this paper simulates the green development performance index of industrial enterprises by using the functional data analysis method and functional entropy weight method. There are four main conclusions. First, the change in the green development performance index of industrial enterprises is U-shaped, which shows an upward trend overall. Within a range of [0.006–0.05], the minimum value is 0.006, and considering the strength and trend of future policies there is no maximum value. The higher the value is, the higher the level of green development of industrial enterprises. Second, according to the weight and fitting curves, we can find that the importance and development level of social performance are at the highest, and the importance level basically floats around 0.5, far higher than the average level. The importance of economic performance and the development level of innovation performance are at the lowest respectively, and there is a big gap with the average level. Third, the shape and trend of the index generated by the average weight and the subjective weight of social performance are basically consistent with the index generated by the objective weight. This shows that the index is not sensitive to the weight and has certain robustness and representativeness. Finally, according to the location of enterprises, they were divided into three categories: middle, east and west. The boost Trap method was used to conduct FANOVA (Functional ANOVA) with the P value of 0.314. The results showed that the index did not differ significantly between regions at the significance level of 0.05.

The impact of wise capital on the balanced performance of small enterprises in Iraq

This study aims to examine the impact of wise capital on the performance of small enterprises in Iraq. Inference, innovation, social responsibility and independence are considered as wise capital dimensions. On the other hand, the financial dimension, customer dimension, learning and growth, and the operational dimension are treated as measures of enterprise performance. The study uses a sample of 207 respondents. Factor analysis and structural equation modeling were used to estimate the results. The results of the study indicate that two dimensions of wise capital, innovation and independence, have significant negative impacts on different measures of enterprise performance, but there is no evidence that inference and social responsibility affect the performance of enterprises in Iraq. This study has several contributions and implications. It contributes to the literature on wise capital and performance of small enterprises. It provides an opportunity for policy makers, regulators, academicians, and entrepreneurs to gain insight into the policy measures and remedies needed to improve the performance of small enterprises in Iraq.

Informal performance measurement in small enterprises

The construction of an appropriate performance measurement system is an important objective that every company is facing today. Firms using sustained performance measurement systems in management achieve higher efficiency. The performance measurement system is one of the determinants which creates an enterprise’s value. Small enterprises do not understand the need for performance measurement formalization or the potential benefits that come from management information systems. They conduct their business results in an informal way, without the systemic approach. Moreover, their decision support systems rely on information and knowledge generated by informal transformations and processes. As companies grow, they lean their decision support systems more on information from the performance measurement systems.Purpose of the article is to present the scope and forms of informal performance measurement used in small enterprises. Method used was a nationwide survey conducted by the CATI method, which was covered by 100 small Polish companies. Analysis was accomplished by the chosen statistical tests and measures. The study provides an original contribution of the author. As a result of the research, it has been found, that most small businesses measured their performance, especially in non-financial perspectives. However, this measurement was informal and often not supported by the use of appropriate measures.

Evolutionary paths of performance measurement and management system: the longitudinal case study of a leading SME

Purpose The literature highlights the relevance of performance measurement and management system in small and medium enterprises (SMEs) to face the current competitive environment. However, a number of studies investigate how performance measurement and management system is effective for evolving and how contingency factors could influence this change. Newer experiences are sporadic and rarely investigated by researchers and practitioners. The purpose of this study is to identify the feasible evolutionary path of performance measurement and management system in leading SMEs to respond to current business challenges. Furthermore, it aims to contribute to the understanding of the role of key contingency factors influencing this evolution. Design/methodology/approach A longitudinal case study, based on retrospective and real-time investigations, is performed to investigate the primary evolutions of the performance measurement and management system and its key determinants. Findings The findings highlight two evolution paths, increasing the maturity of performance measurement. The first path highlights a strong command and control of performance management; the second path shows a democratic and participative of performance management. Moreover, management information system, organizational culture and management style are highlighted as key contingency factors in the change of performance management. Originality/value The authors contribute to knowledge in performance measurement field, showing how the efforts for developing performance measurement and management system in a leading SME could determine two different evolutionary paths. Furthermore, the paper describes the increasing role of organizational culture, management style and management information system in performance management evolution, as well as the relevance of online chats and social media in performance management activities.

Performance measurement in SMEs: systematic literature review and research directions

The purpose of this paper is double. First, the research about performance measurement (PM) in small and medium-sized enterprises (SMEs) will be analysed in order to know its evolution. Next, the research gaps in the business context of these companies will be identified. This paper presents a systematic literature review of 131 articles of PM in SMEs between 2006 and 2019. A conceptual framework is proposed to characterize the studies according to three factors: (1) purpose of the approach; (2) scope of PM; and (3) business context in which the studies are articulated. The reviewed papers were selected from Scopus and Web of Science databases. For this study, we considered the works conducted in the manufacturing sector, and excluded those that focused on the services sector. The results show that most of the studies are concentrated in the context of individual company, on the other hand networks, clusters, and supply chains have received less attention. The information collected herein identifies research gaps that have not been dealt with in detail and are transformed into guidelines to be dealt with by new future specific works in the domain of PM in SMEs.

Implementation of balanced scorecard in Vietnamese enteprises

Balanced scorecard is a highly effective method for performance measurement and strategic management in organizations and enterprises. The number of companies applying this method in Vietnam currently is not very high. For this reason, this paper aims to determine key factors for success when implementing balanced scorecard in Vietnamese enterprises. Then, it assesses the possibility for applying the method in companies who are planning to apply it. The data was collected from a survey of 6 companies who have applied balanced scorecard successfully and 19 companies who want to apply it. The data analysis result from the 6companies who have had success with the balanced scorecard shows four major success factors, including balanced scorecard usefulness, balanced scorecard design, company human resource capacity, and balanced scorecard implementation process. Then, these factors were applied into 19 companies who have interest in implement the balanced scorecard to evaluate the ability to apply balanced scorecard. The result show that senior leaders’ point of views, strategy planning and execution, performance assessment, human resource capacity, and operation management of the company could affect to balanced scorecard implementation. Therefore, business leaders need to focus on these factors in order to successfully implement balanced scorecard in Vietnamese enterprises. Qualitative analysis were applied in this study.

An application of input-output analysis to social enterprises: a case of the Czech Republic

PurposeThis paper aims to investigate the issue of performance measurement of social enterprises with main particular focus on economic performance approach reflecting local aspect, since the local aspect plays a significant role in social entrepreneurship concept. Thus, comparison of two instruments that consider local aspects: local multiplier 3 (LM3) and Input-Output analysis is examined. Input-Output analysis is empirically used to calculate social enterprises’ impact on the Czech economy and to confirm the assumption to be more suitable instrument for economic performance measurement of social enterprises in comparison to local multiplier 3 method.Design/methodology/approachThe research adopted two-phase approach. At first a qualitative approach was used to compare the two selected instruments (LM3 and Input-Output analysis). Consequently, a quantitative research was applied to determine the impact of social enterprises’ activities on the economies of individual regions. The research was carried out on a sample of social enterprises (143 subjects) in the Czech Republic covering the year 2015. For this approach, Symmetric Input-Output tables and multipliers were calculated and revenue data from each observed social enterprise were used.FindingsThe findings of the research indicate effects of social enterprises’ activities on the economy in individual regions of the Czech Republic. The results clearly show that the impact of social enterprises on the Czech economy is not negligible. Calculated impacts differ in sectors as well as in regions. Besides, of these findings, the assumption that the Input-Output analysis is more appropriate instrument for economic performance measurement of social enterprises, especially in situation of a larger sample of social enterprises in different regions, in comparison to LM3 method, was confirmed.Research limitations/implicationsThe limitations of this study is the dependence on the Symmetric Input-Output tables, which are usually published by local statistical offices and it takes some time to construct them. A more significant limitation and future research direction relates to the lack of generally accepted measurement framework in the sector of social enterprises and lack of the data, especially quantitative, in the Czech Republic.Practical implicationsThe findings of the research represent a significant contribution to the process chain of understanding the role of social enterprises in (local) economy. The lack of proven impact of social enterprises to economy is considered as important limit of this sector development, not only from the perspective of investors and donors but also from the perspective of policymakers and even social enterprises themselves. The Input-Output analysis can be applied for any region of any country and can contribute to reduce scepticism about economic performance of social enterprises, thus to support putting social and environmental goals of social enterprises into practice.Social implicationsThis research has been carried out on the so far largest identified sample of social enterprises in the Czech Republic and provides data for discourse among stakeholders about social enterprises’ impact; thus, it enables to understand their impact and make capable to enlarge their support network and development.Originality/valueThis research is a pioneering attempt to provide data about economic impact of social enterprises using Input-Output analysis in the Czech Republic. No previous research identifies such a large sample of Czech social enterprises and collects quantitative data about them, as well as considers Input-Output analysis as an option instead of LM3 method. The effort of this research has been to react on a research gap in studies related to the impact of social enterprises (reflecting local aspect). This paper could be understood as beneficial not only from the perspective of the Czech Republic but also worldwide.

MODEL MANAJEMEN USAHA DALAM UPAYA PENINGKATAN DAYA SAING INDUSTRI BATIK TULIS LASEM KABUPATEN REMBANG

Management ability should be the activity that supports small and medium enterprises to be more effective and efficient in carrying out the enterprise in order to have high competitiveness. The problem occurred is there are many small and medium enterprises have poor management. The same problem also faced by Batik Tulis lasem industry, so the competitiveness of Batik Tulis Lasem industry is not optimal. This research aim is to obtain the proper enterprise management model as the effort to improve Batik Tulis Lasem competitiveness. Data analysis used is qualitative approach and SWOT analysis. The research result is the enterprise management model developed consists of production management, human resources management, marketing management and financing management. In implementing this enterprise management model is also developed criterion of enterprise performance measurement. The enterprise subjects have to carry out SWOT analysis for their enterprises, so the enterprises conditions and the competitor position this time can be identified.

General enterprise performance measurement architecture

Enterprise performance has been investigated since the 1900s, leading to many approaches, methods, and frameworks around the world, developed either by researchers or by practitioners and consultants. The purpose of these approaches is the design and the implementation of performance indicators and performance measurement systems (PMSs). More than 65 approaches have been identified and several studies conducted to compare them. They concluded that each approach, even the most famous ones, can be improved based on the qualities of others. The objective of this paper is to propose a generic architecture for combining the ingredients of individual approaches and methods in a coherent way. This architecture must be generic enough to be widely applicable to all types of approaches and, more generally, to all types of application domains. The first objective of this reference architecture is to propose a synergy and consolidation of the best features of each approach into the best possible system. The second objective is to organise the development and use of the PMS methodologies and tools needed by potential users to integrate a PMS into their own enterprise.

The impact of online reputation on hotel profitability

PurposeThe purpose of this study is to quantify the impact of online customer reputation on financial profitability.Design/methodology/approachOnline reputation is captured by extracting the most recurring textual themes associated with customer satisfaction and dissatisfaction, expressed within positive vs negative online guest reviews on Booking.com. Latent semantic analysis is used for textual analysis. Proxies of overall financial performance are manually constructed for the sample hotels, using financial data from the Financial Analysis Made Easy (FAME) database. Ordinary least squares is used to gauge the effect of online customer reputation on financial profitability.FindingsEmpirical findings indicate that recurring textual themes from positive online reviews (in contrast to negative reviews) exhibit a higher degree of homogeneity and consensus. The themes repeated in positive, but not in negative reviews, are found to significantly associate with hotel financial performance. Results contribute to the discussion about the measurable effect of online reputation on financial performance.Originality/valueContemporary quantitative methods are used to extract online reputation for a sample of UK hotels and associate this reputation with bottom-line financial profitability. The relationship between online reputation, as manifested within hotel guest reviews, and the financial performance of hotels is examined. Financial profitability is the result of revenues, reduced by the costs incurred in order to be able to offer a given level of service. Previous studies have mainly focused on basic measures of performance, i.e. revenue generation, rather than bottom-line profitability. By combining online guest reviews from travel websites (Booking.com) with financial measures of enterprise performance (FAME), this study makes a meaningful contribution to the strategic management of hotel businesses.

Methodical aspects of strategic performance measurement of the metallurgical enterprises

Methodical aspects of strategic performance measurement of the metallurgical enterprises

Performance Measurement in Emerging Market Social Enterprises using a Balanced Scorecard

Performance measurement in social enterprises is important; however, up to now, there is no agreement on which tool to use, especially for those in emerging markets. Therefore, this study used a balanced scorecard to quantitatively measure performance of 446 social enterprises in South Africa. The findings show that the adapted perspectives of a balanced scorecard such as customer, organizational learning and growth, finance and internal processes can be used as performance indicators. This study developed and tested an adapted balanced scorecard that can be used as a performance instrument for enterprises that do not have specific measurement tools.

A Scor-based Model For Green Sales And Distribution Performance Measurement In The Leather Tanning Industry

A green supply chain performance measurement system is needed to manage the environmental risks that are often being the major issues of industry. Claim from the government to implement the green supply chain system will certainly be a boost to major industries in Indonesia. As for PT. Elco lndonesia Sejahtera, to create an industry that applies green perspective in the industry, of course PT. EIS requires a model of its own enterprise performance measurement system design. Therefore, this study aims to design a performance measurement system from Green Sales and Distribution in the supply chain of leather tanning industry. The model used as a tool for designing performance measurement systems from the supply chain is Green SCOR model. The conceptual model is designed by involving activities such as stakeholder identification, needs analysis of green stakeholders, green destination identification, and KPI weighting. The supply chain operation reference metric (SCOR) is applied to identify key performance indicators (KPIs). The weight of the KPI is determined using the AHP method. The results of this study are six green objectives and also fifteen Key Performance indicators under it. Green objectives and Key performance can help companies to improve the performance of Green Sales and Distribution in the company.