Development of performance measurement system according to business environment: an SME perspective
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Date
2013-08-01
Journal Title
Journal ISSN
Volume Title
Publisher
Technická Univerzita v Liberci
Technical university of Liberec, Czech Republic
Technical university of Liberec, Czech Republic
Abstract
Organizations often introduce performance measurement system (PMS) in order to evaluate the level of their performance, make comparison with competitors and plan their future activities. An importance of performance measurement and its information has increased when business environment of today has become more dynamic and competitive. Organizations are confronting unprecedented radical changes to which they must adapt to in order to survive and prosper. Processes of adaptation and reaction to business environment could be ensured by a fast decision making process, an apropos information and a suitable data flow. Since consistent, logical and strategic decisions could affect the conformance to uncertain and complex environment, the design, features and implementation of a performance measurement system should always conform to business environment. According to position of small and medium-sized enterprises (SMEs), implementation of new theoretical performance measurement methods passes over with rational usage of internal resources. This influence the need to search for new possibilities to development of performance measurement system. However there is a lack of literature concerning development of performance measurement system inside SME. The aim of this paper is to investigate an internal recourses based development of performance measurement system according to business environment. Research results are based on the quantitative approach (questionnaire survey) of Lithuanian SMEs. The results can guide SMEs in the selection of a performance measurement system which conforms to business (external and internal) environment considering particular factors such as the state of business environment, structure of performance measurement system or rational usage of internal resources.
Description
Subject(s)
business environment, performance measurement, small and medium-sized enterprises
Citation
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ISSN
ISBN
978-80-7372-953-0