In order to analyze business environment and performance measurement system institutional theory was chosen and shows that institutional theory identifies internal and external environmental factors as institutional factors, according to which the behaviour of an organization could be disclosed and researched. This shows that according to institutional factors internal and external environment of organization could be recognized. The synthesis, comparative analysis methods of scientific literature which involves the generalization of theoretical propositions were applied for the analysis of performance measurement. The criterion list for identification of internal and external environment was systematized. Theoretical assumptions and hypothetical model of the structure and features of performance measurement system in different internal and external environment are developed. According to this aspect the compatibility between performance measurement and environment of organization was selected for further research, striving to summarize research results of other this field scholars and develop the model of performance measurement system compatibility with business environment.DOI: http://dx.doi.org/10.5755/j01.em.17.2.2163
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