Theory and practice in SME performance measurement systems

Examining human factors and ergonomics aspects in a manufacturing organisation's metrics system: measuring up to stakeholder needs

This research examines the status of human factors and ergonomics (HF/E) metrics in the case context of product realisation in an electronics manufacturing company. Interactions with 100+ stakeholders over a five year period were thematically analysed for metrics-related views and content. A disconnect between engineering metrics and HF/E metrics was evident. Engineers and HF/E specialists expressed different understandings of the gap between the disciplines and how to generate HF/E metrics that would fit the organisation. Other emerging themes provided insight for metrics development including improving indicator relatability, considerations for communication of information, and barriers to implementation of metrics. The results led to seven recommendations to help guide practitioners in developing and refining HF/E metrics as part of an organisation's metrics system. This macroergonomic case study provides key points for consideration when developing HF/E focussed metrics to support organisations being more proactive with HF/E in work system design. Practitioner summary: Metrics' presence, stakeholder views on metrics, and metrics-related content in a case organisation were thematically analysed with a macroergonomics focus. Human factors and ergonomics metrics (HF/E) were disconnected from engineering metrics thus limiting the design team's ability to handle human factors in design. Factors influencing HF/E metrics creation and integration were identified, resulting in seven recommendations for developing HF/E metrics.

Exploring product/service innovation process in UK: university spin-offs from practice-based lens

In this study, we explore the product/service innovation process in university spin-offs (USOs) – a category of micro/small firms operating at the edge of technological frontiers. Our approach reconciles the traditional linear model with a practice-based lens, which characterises firm learning processes as underpinned by two logics of production and development. The findings agree with the extant literature that the process overall does not always follow stages in a standardised model. The lens further suggests that the interplay between the two logics occurs even within an individual so-called stage of the linear model, which makes for a counter-intuitive observation. This interplay also hinges upon customer collaboration and feedback. Overall, the apparent lack of adherence to formal process in USOs innovation is not mere haphazard response to being small and new. Reconciling the linear model and the lens is a step further in accounting for the latter’s view of iterative learning and knowledge creation, while preserving the former’s relevance as a communication device for multiple stakeholders involving in the process.

Do digital literacy and business sustainability matter for creative economy? The role of entrepreneurial attitude

In the last decade, the significant of the creative economy has continued to strive in taking part in the momentum of economic revival as the impact of the corona virus disease (Covid-19). This study highlights the factors affecting the creative economy, digital literacy, business sustainability, and entrepreneurial attitudes. In this study, a quantitative approach using structural equation modeling with partial least squares (PLS-SEM) was used to predict and confirm the hypotheses presented. This research was conducted for housewives on the islands of Sumatra, Java, and Bali in Indonesia using a google form questionnaire. The total sample was 500 respondents from these three islands. The findings indicate that digital literacy can explain the creative economy, business sustainability, entrepreneurial attitude. However, the variables of entrepreneurial attitudes need support from digital literacy and business sustainability. This research is a follow-up to the creative economy sector post the Covid-19 pandemic.

Performance from building smart factories of small- and medium-sized enterprises: the moderating effects of product complexity and company size

Purpose

This study aims to investigate the relationship between building smart factories in manufacturing small- and medium-sized enterprises (SMEs) and firm performance and the moderating effect according to product complexity and company size.

Design/methodology/approach

Data were collected from 206 companies selected in the list of SMEs, which had built smart factories, provided by the Smart Manufacturing Innovation Center in Korea. The collected data were analyzed using structural equation modeling (SEM) technique.

Findings

First, production automation and big data utilization are associated positively with productivity, but not significantly with export performance. Second, supply chain integration is associated positively with both productivity and export performance. Third, product complexity moderates negatively the relationship of productivity with each of production automation, big data utilization and supply chain integration while moderating positively the relationship between supply chain integration and export performance. Finally, company size does not moderate significantly the relationship between productivity or export performance with any of production automation, big data utilization and supply chain integration.

Originality/value

This study contributes theoretically to literature by demonstrating the usefulness of building smart factories and suggesting how SMEs build a smart factory to enhance productivity and export performance from a business perspective. Moreover, this study contributes practically by proposing that SMEs should put priority on supply chain integration over production automation and big data utilization and execute different strategies of building smart factories depending on product complexity.

The use of non-financial performance measures for managerial compensation: evidence from SMEs

This study explores the relationship between contextual variables—strategy, perceived environmental uncertainty (PEU), and decentralization—and the use of non-financial performance measures (NFPM) for managerial compensation in small and medium enterprises (SMEs). Using questionnaire data from SMEs’ managers, we find that the use of NFPM is positively associated with PEU hostility and decentralization. Furthermore, our study shows that these results are mostly driven by CEO’s compensation (in comparison to non-CEOs compensation) and family firms (in comparison to non-family firms). Finally, our analyses reveal that the use of different types of NFPM (customer-oriented, employee-oriented and operations-oriented) is associated with distinct contextual variables. Particularly, customer-oriented NFPM are negatively related to PEU dynamism and positively related to decentralization, while operations-oriented NFPM are positively related to PEU hostility.

An Improved Intellectual Capital Management Method for Selecting and Prioritizing Intangible-Related Aspects: A Case Study of Small Enterprise in Thailand

This study develops a new integrated approach for improving deficiencies relating to executives’ intuitive or illogical decisions, mainly found in past intellectual capital management (ICM) methods. To simultaneously rectify several flaws, the process model of intellectual capital (IC), a traditional ICM method, is integrated using decision science methods—the analytic network process (ANP) and quality function deployment (QFD). The process model of IC is adopted as a core procedure of the proposed ICM approach. ANP is integrated to improve the ability to consider relationships among the IC critical factors and their impacts, while QFD is included to facilitate the systematic consideration and identification of correlations, linkages, and impacts between all IC-related elements from the business concept to strategic plans. The proposed method was applied to two case studies in one real enterprise in Thailand. The results of the implementation reveal the priorities of all IC-related aspects, and the first priority of key success factors (KSFs), key performance indicators (KPIs), and action plans (APs) are all associated with the organization in the structural capital dimension. The results demonstrate that the method may offer advantages with respect to the conceptual expectations and may prioritize critical IC factors and identify their weights. Furthermore, the improved method could indicate the correlations and impacts between related elements, such as critical factors and associated indicators. This study proposes a new comprehensive and systematic management framework by integrating different concepts—decision science methods and the ICM method. To the best of the authors’ knowledge, this improved approach has not been explored or proposed in earlier studies.

Managing the most important asset: a twenty year review on the performance management literature

Purpose

The three objectives served by this review are to provide readers a limpid insight about the topic performance management (PM), to analyse the latest trends in PM literature and to illustrate the theoretical perspectives. It would be fascinating for the practitioners and researchers to see the latest trends in the PM system, which is not yet covered in previous reviews. The study covers the historical and theoretical perspectives of human resource management practices. We also try to unveil some of the theoretical debates and conflicts regarding the topic.

Design/methodology/approach

We reviewed 139 studies on PM published within the last 20 years (2000–2020). The method used here is the integrative review method. The criteria used to determine studies are articles from peer-reviewed journals regarding the PM system published between 2000 and 2020. The initial search for studies was conducted using an extensive journal database, and then an intensive reference-based search was also done. Each selected article was coded, themes were identified, and trends for every 5 years were determined. All the articles were analysed and classified based on the methodology used to identify qualitative and quantitative studies.

Findings

The review concludes that PM literature's emphasis shifted from traditional historical evaluations conducted once or twice a year to forward-looking, feedback-enriched PM systems. By segregating the studies into 5-year periods, we could extract five significant trends that prevailed in the PM literature from 2000 to 2020: reactions to PM system, factors that influence PM system, quality of rating sources, evaluating the PM system and types of the PM system. The review ends with a discussion of practical implications and avenues for future research.

Research limitations/implications

It is equally a limitation and strength of this paper that we conducted a review of 139 articles to cover the whole works in PM literature during the last 20 years. The study could not concentrate on any specific PM theme, such as exploring employee outcomes or organizational outcomes. Likewise, the studies on public sector and non-profit organizations are excluded from this review, which constitutes a significant share of PM literature. Another significant limitation is that the selected articles are classified only based on their methodology; further classification based on different themes and contexts can also be done.

Originality/value

The study is an original review of the PM literature to identify the latest trends in the field.

The impact of contingency fit on organisational performance: an empirical study

Purpose

The research investigates the effectiveness of the performance measurement alignment approach which claims that measurement diversity (multiple performance measures) should be aligned with organisational contingencies to enhance organisational performance.

Design/methodology/approach

The theoretical framework is contingency theory. The study is an empirical investigation of the indirect relationship between three contextual factors (business strategy, information technology and organisation size) and organisational performance via multiple performance measures. The results are derived from cross-sectional questionnaire survey data from 132 Libyan companies (response rate of 61%). For data analysis, the research uses mediation regression analysis via Preacher and Hayes' (2004) macro.

Findings

There is a significant indirect effect of business strategy and information technology, but not organisation size, on organisational performance. The measurement diversity approach plays a core mediating role in the relationship between the contingencies and organisational performance.

Practical implications

The study helps to provide a better understanding of the usefulness of the fit/match between contingencies and Multiple Performance Measures in improving organisational performance.

Originality/value

The empirical evidence supports the central proposition of contingency theory that there is no universally appropriate performance measurement system which applies equally to all organisations in all circumstances. It also provides evidence relating to non–manufacturing and an emerging market context. This research significantly extends the relevant literature by highlighting the relationship between information technology, multiple performance measures and organisational performance. This study is the first to use Preacher and Hayes' (2004) macro to analyse mediation design in the field of contingency-based performance measurement.

The Inter-Relationship between Innovation Capability and SME Performance: The Moderating Role of the External Environment

Small and Medium-Sized Enterprises (SMEs) play a crucial part in a country’s economic growth and sustainable development. The purpose of this study is to investigate the relationship between innovation and the performance of SMEs. An external environmental factor acts as a moderating variable between the exogenous and endogenous variables. Data were collected from 350 textile SMEs operating in Pakistan using a cross-sectional study design through self-administered questionnaires. Of these, only 335 surveys were valid for further analysis. The structural equational modeling technique was used for analyzing the data and testing the hypotheses that innovation and the external environment affect an SME’s performance. The results indicate a significant association between innovation and SME performance, and the external environment has a moderating impact on innovation and SME performance. This paper offers valuable recommendations to senior managers and owners of SMEs to consider the innovation and external environment as crucial factors when assessing their SME’s performance. This study contributes towards the body of knowledge on this subject and can help practitioners and researchers explore the effects of innovation and the external environment on the performance of SMEs.

Performance Measurement System: Implementation Process in SMEs

There is still a considerable interest in the topic of business performance, both in scientific community as well as in managerial praxis. Especially, the area of performance measurement system (PMS) and its implementation is forming a considerable scope for improvement. However, the research of PMS implementation in small and medium-sized enterprises (SMEs) have been underestimated. Despite the significant contribution of SMEs to economic growth, employment share or predominance of SMEs over large companies, a very small amount of theoretical and empirical researches has been carried out focusing on implementation of PMS in SMEs. This paper is addressing the readiness and successfulness of SMEs in PMS implementation. The aim of our research was to analyze the process of PMS implementation in SMEs and to identify factors that influence the success and satisfaction with implemented PMS and to identify problematic factors that cause failure, dissatisfaction and create limits to PMS application. Sample of our research consisted of 336 SMEs operating in Slovakia of various ages, sizes, and different approach to performance measurement. Based on results of our research, we created suggestions and a set of the key success factors to each phase of PMS implementation process that respect the specifics and nature of SMEs. Within each phase, we found evidence that several factors significantly raise the potential of successfulness of PMS implementation, and others, in contrary, are contributing to the unsuccessfulness.

Productivity and process performance in a manual trimming cell exploiting Lean Six Sigma (LSS) DMAIC – a case study in laminated panel production

Purpose

The purpose of this case study is to investigate inefficiency and downtime factors within a panel lamination process cell at a timber component manufacturing company. Areas of concern related predominantly to the manual trimming or finishing of a range of laminated timber panels for the caravan and leisure industry. The intermittent feeding of inputs and material outputs was also investigated during this case study.

Design/methodology/approach

The case study was conducted over a six-month period using the Six Sigma defining, measuring, analysing, improving and controlling (DMAIC) construct. But was equally supported through a combination of tools both applied in lean manufacturing and statistical properties commonly assigned to Six Sigma projects.

Findings

This paper provides insights about the identification of the root causes for poor productivity and overall equipment effectiveness issues experienced by manual trimming/finishing operations in a laminated timber panel production cell. It also identifies solutions to overcome these issues and benefits (such as improved OEE, reduced downtime and savings in staffing costs) that were obtained due to the application of these solutions. This study contributes to understanding the interconnections of fork-lift truck movements with staff members working within manual finishing areas connected to a panel lamination cell.

Originality/value

This paper contributes new knowledge into the root causes of poor productivity and process performance within manual finishing operations in a laminated timber panel production cell at a small medium enterprise. By applying elements of Six Sigma' quality focussed analytical methods within the DMAIC structure, and simultaneously applying the waste reduction method of lean manufacturing, this paper provides useful perspective on why both these quality improvement-based ideologies are applied to overcome process issues in manufacturing.

The impact of digital logistics start-ups on incumbent firms: a business model perspective

Purpose

Digital freight forwarder (DFF) start-ups and their associated business models have gained increasing attention within both academia and industry. However, there is a lack of empirical research investigating the differences between DFFs and traditional freight forwarders (TFF) and the impact of digital start-ups on incumbents' companies. In response, this study aims to examine the key business model characteristics that determine DFFs and TFFs and propose a framework illustrating the extent to which digital logistics start-ups influence incumbent logistics companies.

Design/methodology/approach

Based on the primary data gathered from eight interviews with experts from start-ups' and incumbents' logistics companies, as well as secondary data, the authors identify the main factors of DFFs start-ups that have an impact on TFFs and analyze the similarities and differences in regard to the business model components' value proposition, value creation, value delivery and value capture.

Findings

The results show that differences between DFFs and TFFs appear in all four business models' components: value proposition, value creation, value delivery and value capture. In particular, the authors identify three main factors that need to be considered when assessing the impact of DFFs on TFFs: (1) the company size, (2) the market cultivation strategy and (3) the transport mode.

Originality/value

This is one of the first studies to specifically examine the key business model differences between DFFs and TFFs and to propose a conceptual framework for understanding the impact of digital logistics start-ups on incumbent companies.

Spatial and Sectoral Determinants of Productivity: An Empirical Approach Using an Entropy Lens

This study analyzes the productive structure of Portugal in the period 2013–2017, using indicators of localization and specialization applied to 308 Portuguese local authorities. From an empirical approach using a threshold model, the following indicators are used: (i) localization quotient; (ii) specialization coefficient; (iii) Theil entropy index; (iv) rate of industrialization; and (v) the density of establishments by business size. The selected period 2013–2017 is due to the available data concerning firms located per local authority, and the choice of threshold model is justified through the possibility of assessing the non-linear effects of specialization and diversification on productivity, considering, in simultaneous terms, different regimes per business size. Estimation of the threshold model identified a positive, statistically significant relation between industrialization and productivity. Similarly, the terms of interaction between exports and diversification, and between the former and higher education institutions, shows a catalyzing effect of productivity. In addition, the most specialized micro-firms affect productivity significantly and positively, while the least specialized have the opposite effect. Small, less specialized companies have a significant and negative effect on productivity, contrasting with less specialized, medium-sized companies, which affect productivity positively. For large firms, the impact on productivity is negative for both high and low levels of specialization, reinforcing the need to fill existing gaps in strategic diversification, as well as the vertical and horizontal integration of the activities of production chains with high value added.

The effects of IT use intensity and innovation culture on organizational performance: the mediating role of innovation intensity

Purpose

This study aims to investigate innovation intensity by exploring the roles of internally focused and externally focused information technology (IT) use intensity and innovation culture on innovation intensity and organizational performance.

Design/methodology/approach

A model exploring the effects of internally and externally focused IT use, plus two key dimensions of innovation culture – collaborative and entrepreneurial – on innovation intensity and organizational performance is tested via a structural equation model using partial least squares with data collected from 395 top executives.

Findings

The results indicate that intense use of internally and externally focused IT and the collaborative dimension of culture positively affect innovation intensity, which, in turn, increases operational and financial performance.

Practical implications

Innovation is an important driver of performance, for both internal efficiency and competitiveness. The role of IT in the innovation process is key: it allows information, knowledge and idea sharing. Top managers should make a wide array of IT tools available to increase internal and external information exchanges. They should also develop an organizational context that stimulates innovativeness and promotes collaboration.

Originality/value

IT helps employees acquire and use the knowledge needed to innovate within and outside organizational boundaries. To be innovative, employees need to work in an organization with a strong innovation culture, a primary determinant of innovation intensity. This study is one of the first to examine the effects of an organization’s innovation culture and its use of IT on innovation intensity and organizational performance. In addition, constructs of innovation intensity and internally and externally focused IT use are developed and tested.

Development of footprint framework of performance measurement system for SMMOs

Purpose

The performance measurement system (PMS), recognized as an important tool for rapid improvement, has found wide applications in the larger organizations and has received a lot of research attention in recent past. PMS adoption in SMEs is low even though SMEs have realized its importance and benefits and are now ready to embrace PMS as a tool for improvement. This paper proposes a novel framework, called the footprint framework, for design and implementation of PMS for SMEs. The proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS.

Design/methodology/approach

The theoretical framework was conceptualized and its basis was tested for feasibility using an industry survey. The survey was analyzed using the statistical tools available in the SPSS 24.0 statistical analysis software, and the insights obtained from this analysis were used to shape the proposed framework. The framework was populated for small and medium manufacturing organizations (SMMOs) as a case study. Analytic hierarchy process was used to synthesize the data provided by the survey to build up the proposed framework and its components.

Findings

The footprint framework is a unique framework in the respect that it consists of a set of PMS suited to different company profiles that can be accessed quickly. Any SMMO that desires to determine its future PM requirements has simply to define its probable profile of the future in terms of size, business model and order winner and check the PMS appropriate to that profile from the footprint framework. Thus the SMMO can even prepare for its futuristic PM needs.

Research limitations/implications

The proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS. The main advantages of the footprint framework are its simplicity, ease of use, immediate implementation and a built-in knowledge bank.

Practical implications

This research has proposed a new PMS framework, an out of the box tool that makes it possible for the Indian SMMO to adopt PMS on an instant basis. The footprint framework combines the experience of several researchers and several practitioners to offer a ready-made starter kit that needs no other aid to implement a most appropriate PMS and leverage the industry PM best practices to build the performance measurement knowledge and expertise of the SMMO without going through a protracted learning or training process.

Social implications

This research has made a novel proposal for a PMS framework by proposing the footprint framework – a PMS framework that is not only an instant, out of the box solution for the SMMOs but also incorporates the know-how to implement the performance measurement complete with information on what to measure, how to interpret and what should be done to improve.

Originality/value

The proposed framework is simple to understand and removes a key barrier of PMS adoption for SMMOs. The user SMMO needs to state its size, business model and order winner from the available options, build up its PMS code, select the matching PMS from the framework and the SMMO is ready to implement the PMS.

Knowledge risk prevention strategies for handling new technological innovations in small businesses

Purpose

The purpose of this conceptual paper is to name and categorize risks related to emerging technological innovations and to propose a number of countermeasures. The emphasis is placed on knowledge risks that are grouped under human, organizational and technological spheres and are presented from a small business perspective.

Design/methodology/approach

The presented paper takes into account the prior literature and the authors’ thoughts and experiences to identify potential knowledge risks and countermeasures.

Findings

Having a better overview of possible knowledge risks that may emerge in conjunction with the adoption and application of emerging technological innovations can help small businesses to better assess these new developments and their possible upsides and downsides. The proposed risks and countermeasures can also help policymakers as well as other organizations working for or together with smaller businesses to help them maintain and even increase their competitiveness.

Practical implications

Different implications are suggested for not only managers and employees in small businesses but also other stakeholders working for or with small businesses.

Originality/value

To the best of the authors’ knowledge, this paper is the first one that focuses on how small businesses can improve their decision-making regarding the adoption of new emerging technological innovation from a knowledge risk perspective.

Validation issues of a performance management system for design: three case studies

Purpose

This study aimed to discuss issues related to the process for validating a performance management system for design (PMSD) in three product development companies.

Design/methodology/approach

The use of multifunctional groups becomes important because it favors viewing the organization as a whole, thereby reducing existing gaps between segments of the company. To support this study, focus group research was used.

Findings

Viewing design as a resource that contributes to increased competitiveness offers companies benefits, such as improved performance measurement. This measurement is based on indicators and, to be useful, an indicator system should stimulate the company's interest. In addition, the present study made it possible to conclude that the validation process is essential in preimplementation stages because validation allows the PMSD to be adapted to bring it closer to the reality of companies, thus increasing the chances of success during the implementation stage.

Originality/value

Validation of the metrics from the perspective of senior management enabled critical analyses of the applicability of the PMSD, as well as its suitability and approximation to the reality of businesses, by selecting the most relevant data.

The Innovativeness and Usage of the Balanced Scorecard Model in SMEs

By using the balanced scorecard model, a company is able to identify its advantages, as well as its deficiencies, and thus improve its business. The introduction of innovations and the implementation of innovative activities in companies are key for gaining a competitive advantage. There is no ideal model that would measure the non-financial, non-tangible perspectives of a company (such as customer perspective, the perspective of research and innovation, and the perspective of internal processes). The main goal of this paper is researching the applicability of the balanced scorecard model in small- and medium-sized companies as the basis for a model for assessing innovative activities in the Republic of Slovakia and the Republic of Serbia. First, a hypothetical model was created based on theoretical data from world scientific articles. Then, the structural equation model (SEM model) was created, based on the conducted research in 223 companies and the obtained results.

Identification, Selection and Prioritization of Key Performance Indicators for the Improvement of Occupational Health (Case Study: An Automotive Company)

Regarding the important role of occupational health in the continuous improvement of organizations, the aim of this study was to identify, select and prioritize key indicators for improvement of occupational health in an automotive company. This cross-sectional descriptive study was carried out in three stages. First, a semi-structured interview as well as an inspection and a review of the company's documentation and studies were carried out, and a set of key indicators were identified and selected. Then, the validity of the indicators were determined by experts (N = 11). Following that, the indicators were prioritized based on SMART criteria. Following the study framework, we collected a set of indicators that included 45 health indicators and 17 educational ones. The results of examining their content validity showed that among the 45 primary health indicators and 17 educational ones, 12 and 9 indicators had acceptable validity, respectively, and a total of 21 indicators were suggested for the purpose of the study by the expert team. The results of prioritizing showed that the leading indicator such as the percentage of corrective and preventive health actions done with the weight of 0.146 was the first priority. A set of key indicators was proposed according to the results, based on the objective of the study, which can help managers and industrial hygiene experts to assess performance in the automotive industry.

How organizational culture influences performance measurement systems in SMEs

Purpose

Literature highlights the impact of culture on managerial processes in general and the performance measurement system (PMS) in particular. However, understanding how organizational culture (OC) influences the PMS remains a challenge, especially in SMEs as in these companies the studies are very limited. The purpose of this paper is to investigate how OC influences PMSs in manufacturing SMEs.

Design/methodology/approach

To achieve the above purpose, a case study approach has been adopted. Four manufacturing SMEs with heterogeneous OC were investigated by means of companies’ documents reviews, participant observations and semi-structured interviews. A conceptual framework based on the competing value framework proposed by Cameron and Quinn (1999) and the PMS typology proposed by Garengo (2009) has been used to investigate the impact of OC on PMS.

Findings

According to the results, OC has a huge impact on PMS in manufacturing SMEs. The dimensions of “internal/external focus” influence strategy formalization, monitoring of the external environment and performance review. The “flexibility/control” dimensions influence the adoption of the balanced (or unbalanced) set of performance measures a company uses.

Originality/value

This paper contributes to clarifying how OC influences PMSs in manufacturing SMEs. Moreover, the study of interplay between flexibility/control dimensions and internal/external dimensions supports the identification of three theoretical propositions and four PMS types related to the four different OCs identified by Cameron and Quinn (1999).

Exploring the Role of Project Management in Product Development of New Technology-Based Firms

This article explores the role of project management in the product development of new technology-based firms (NTBFs). For this qualitative study, we conducted a series of semi-structured in-depth interviews with 36 NTBFs. Consequently, we discovered a set of practices that are applied in the new product development (NPD) process and, based on entrepreneurs’ perceptions, link them to the success dimensions of NTBFs. Our findings indicate that entrepreneurs apply Lean startup and agile approaches to project management to a large extent. Moreover, we identify key contingencies for approach selection and propose a framework for NPD in an entrepreneurial context. The study contributes to the literature by integrating project management, new product development, and entrepreneurial perspectives.

How to maintain sustainability of micro and small entreprises of crispy oil palm mushroom

Purpose

This paper aims to analyze sustainability level of crispy palm tankos mushroom business; institutions involved in the development of crispy palm tankos mushroom business in Riau Region; nutritional composition, sensory assessment both descriptively and hedonically, and also designing the suitable and hygienic packaging for crispy palm tankos mushroom in Riau; institutional structuring model involved in the development of crispy palm tankos mushroom business in Riau; and strategies to improve the quality of crispy palm tankos mushroom in Riau.

Design/methodology/approach

This study is quantitative research conducted by survey. The research was conducted in Indragiri Hulu, Pelalawan, Kampar and Siak, Riau Province, Indonesia from April to August 2017. The study population is all producers producing crispy oil palm mushroom in the research area. The sample was determined purposively with the criterion of the producers who have been running their business for at least 5 years. Based on the criterion, there were 225 producers included as the sample.

Findings

This study found that business sustainability is the main concern of micro business of crispy palm tankos mushroom in Riau Province. Although local government lack of support, the average value of business sustainability is in the very high category. In addition due to the excellent business support quality, business sustainability is supported by the family environment, independence and business progress. There are two institutions involved in the development of makers business to date, they are informal financial institutions that help makers to increase business capital, and retailers who help makers deliver products to consumers. The results of nutritional composition analysis of crispy palm tankos mushroom showed that the crispy tankos mushroom is a product with good nutrition value for consumption by the community. The implication of this study is to improve the quality of the tankos mushroom crispy palm in terms of color according to the choice of the panelists.

Originality/value

Originality of this study aims to provide strategic formulation to use local resources and improve the economic actors of the home industry of crispy palm tankos mushroom processing in Riau. This research is conducting a structure to the institutions involved in the development of crispy palm tankos mushroom and improving the product quality. This research contributes to the development of science, especially economic development, particularly the development of small industries.

Characterising performance measurement systems as used in SMEs: a field study

Purpose

As calls have been made to characterize and theorise performance measurement systems (PMS) and as these systems are highly contextualised because of their mission-critical nature, the purpose of this paper is to generate empirically-valid and useful findings with regard to their characterisation as information technology artefacts through an approach founded upon the user’s perspective.

Design/methodology/approach

Using both qualitative and quantitative data collection approaches, the authors conducted a field study through extensive interviews in situ with the owner-managers of 16 small- and medium-sized enterprises (SMEs).

Findings

The PMS are characterised, from their users’ point of view, in terms of their functional attributes as information systems dedicated to the management of organisational performance, that is, as being either operational, functional, managerial or organisational systems.

Research limitations/implications

Having modelled the PMS artefact in terms of its artefactual dimensions and features, the authors have empirically validated a characterisation approach that allows researchers to circumscribe this artefact within its specific usage context and to identify its salient attributes as study variables.

Practical implications

The research findings provide an empirical basis for the design and evaluation of PMS that is coherent with the specific context of their use in SMEs.

Originality/value

This study validates a novel and demonstrably useful artefactual perspective to characterize and theorise PMS as objects of empirical research.

Supply chain performance measures and metrics: a bibliometric study

Purpose

The purpose of this paper is to review the existing literature on supply chain performance measures and metrics (PMMs). It provides a critical evaluation of 234 articles published in past 24 years.

Design/methodology/approach

The paper examines the studies published from 1991 to 2014 by adopting the bibliometric technique of citation and co-citation analysis.

Findings

The analysis of the results indicate that the number of articles on supply chain PMMs is increasing at its fastest pace in the past few years. Furthermore, the study identifies some of the most influential articles on performance measurement and metrics. Finally, it concludes that there has been a transition from traditional to more sophisticated performance measurement system.

Research limitations/implications

This study focuses only on supply chain performance measurement and metrics and excludes research on performance management and control. Thus, researchers may explore and extend this area of research.

Originality/value

To the knowledge of the authors, this is the first study to review the literature on supply chain PMMs by using citation and co-citation analysis. The study includes 234 articles over the time of 24 years (1991-2014).

The use of management control and performance measurement systems in SMEs

Purpose

The purpose of this paper is to respond to recent calls for understanding how multiple management control (MC) and performance measurement (PM) systems are used simultaneously for managing performance, particularly in the context of small- and medium-sized enterprises (SMEs).

Design/methodology/approach

Data are collected during an in-depth case study of MC and PM and management practices in a Dutch SME using multiple data sources and elicitation methods, including interviews and participant observations.

Findings

This study identifies managerial practices that enable the interplay of the four control systems – beliefs, boundaries, diagnostic and interactive – helping the organization manage organizational tensions in relation to short- and long-term focus, predictable goal achievement and search for new opportunities, internal and external focus, and control and creativity.

Research limitations/implications

This paper advances the research on integrating multiple aspects of performance management, particularly technical and social. This research is based on a single case study; future qualitative and quantitative studies could explore the interplay between the four control systems in other settings and explore the relationship between control systems and leadership style.

Practical implications

Managing performance requires active and continuous use of all four control systems. This is particularly salient in SMEs where less formal controls play a key role and where balance needs to be ensured despite the lack of managerial processes and capabilities.

Originality/value

The findings advance PM and management theory and practice in the context of SMEs.

The Implementation of Performance Management Systems in U.S. Physician Organizations

Performance management systems (PMSYS) aid in improving the quality and efficiency of care, but little is known about factors that influence more robust PMSYS among physician organizations. Using a nationally representative survey of U.S. medical practices, we examined the extent to which organizational capabilities and external factors were associated with more developed PMSYS. Linear regression estimated the relative impact of these factors on PMSYS. On average, practices implemented a minority (32 points out of 100) of the PMSYS processes assessed. Practices evaluated ( p < .01) or financially incentivized by external entities ( p < .01), receiving data from health plans ( p < .01), participating in an accountable care organization ( p < .01), affiliating with an independent practice association and/or physician-hospital organization ( p < .01), and using health information technology ( p < .01) and chronic disease registries ( p < .01) to greater degrees had more robust PMSYS. PMSYS of medical practices are underdeveloped, although both external incentives and organizational capabilities may support PMSYS development.

Benchmarking knowledge management practices in small and medium enterprises

Purpose

The purpose of this paper is to formulate the process of measuring and benchmarking the performance of knowledge management (KM) practices as a multicriteria group decision-making problem and present a new multicriteria group decision-making approach for effectively evaluating the performance of KM practices to meet the interests of various stakeholders in small and medium enterprises (SMEs).

Design/methodology/approach

A new multicriteria group decision-making approach is developed for evaluating the performance of KM practices of individual SMEs. Intuitionistic fuzzy numbers are used for representing the subjective assessments of decision makers in evaluating the relative importance of the evaluation criteria and the performance of individual KM practices with respect to specific evaluation criteria. A fuzzy multicriteria group decision-making algorithm is developed for measuring and benchmarking the performance of alternative KM practices.

Findings

The proposed multicriteria group decision-making approach is capable of effectively evaluating the performance of KM practices through adequately considering the presence of multiple decision makers, the multi-dimensional nature of the evaluation problem, and appropriately modeling the subjectiveness and imprecision of the evaluation process. The presentation of an example shows that the proposed fuzzy multicriteria group decision-making algorithm is simple to use and efficient in computation.

Research limitations/implications

The outcome of the multicriteria group decision-making approach is highly dependent on the inputs provided by the decision maker.

Practical implications

The novelty from this research lies in the utilization of a multicriteria group decision-making approach for evaluating the performance of KM practices in an organization. The outcome from the performance evaluation process allows the enterprise to adopt appropriate KM practices for achieving competitive advantages.

Social implications

The proposed multicriteria group decision-making approach has a significant social implication as it can be used as a decision-making tool for providing various decision makers in SMEs with useful and strategic information concerning the performance of KM practices in a given situation.

Originality/value

The originality of this paper lies in the development of the multicriteria group decision-making approach for effectively measuring and benchmarking the performance of KM practices of individual SMEs.

A Two-Step Method to Identify Positive Deviant Physician Organizations of Accountable Care Organizations with Robust Performance Management Systems

OBJECTIVE

To identify positive deviant (PD) physician organizations of Accountable Care Organizations (ACOs) with robust performance management systems (PMSYS).

DATA SOURCE

Third National Survey of Physician Organizations (NSPO3, n = 1,398).

STUDY DESIGN

Organizational and external factors from NSPO3 were analyzed.

DATA COLLECTION/EXTRACTION METHODS

Linear regression estimated the association of internal and contextual factors on PMSYS. Two cutpoints (75th/90th percentiles) identified PDs with the largest residuals and highest PMSYS scores.

PRINCIPAL FINDINGS

A total of 65 and 41 PDs were identified using 75th and 90th percentiles cutpoints, respectively. The 90th percentile more strongly differentiated PDs from non-PDs. Having a high proportion of vulnerable patients appears to constrain PMSYS development.

CONCLUSIONS

Our PD identification method increases the likelihood that PD organizations selected for in-depth inquiry are high-performing organizations that exceed expectations.

Coordination and responsiveness issues in SME supply chains: a review

Purpose

Globalization and liberalization of the world economy have leveled the field for all competitors across the globe. To face global competition successfully, SMEs have to break their isolation in the value chain. To overcome the dynamic challenges of the market, supply chain management can be an important tool for SMEs. The purpose of this paper is to synthesize different issues related to the coordination and responsiveness of supply chain management in SMEs, through a review of the literature.

Design/methodology/approach

In all, 116 research papers, mainly from referred international journals, are reviewed to identify the thrust areas of research. On the basis of the review, gaps are identified and a research agenda is proposed.

Findings

It is observed from the review that SMEs have not been very proactive in implementing supply chain management. These organizations face a lot of problems in coordinating their operations with other members of the supply chain. They are localized in functioning. On export fronts SMEs face many constraints due to lack of resources and poor innovative capabilities. To face the challenges of open global market, SMEs have to manage their problems and supply chain risks effectively. Research gaps are identified in different areas of the supply chain such as coordination and responsiveness issues, service quality issues, and performance benchmarking for future directions of research.

Originality/value

This paper explores the major areas for research on coordination and responsiveness of SME supply chains. The findings of the paper will be highly useful for the researchers to decide the direction of their research.

Performance measurement system implementation in a turbulent operating environment

Purpose

The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for small- and medium-sized enterprises (SMEs) operating in a turbulent environment. The current models and frameworks for the design and implementation of a PMS are for large companies; these traditional design and implementation processes are too multi-stage and long term for SMEs operating in a rapidly changing environment.

Design/methodology/approach

The study constructs a conceptual framework based on the performance measurement and management literature and empirical evidence from a longitudinal case study. Interviews, an analysis of strategic documents and documentation of the prevailing measurement system were conducted.

Findings

The study results reveal the framework for a flexible PMS design. In the framework, the PMS consists of core permanent measures that control the profitability of the company and supportive measures of the realisation of strategic targets. The supportive measures change and develop along with the strategy.

Originality/value

The study provides new understanding about the performance measurement design process in SMEs operating in a turbulent environment. The existing literature presents performance measurement design and implementation process models for large organisations, but these frameworks are too multi-stage and long term for SMEs.

Developing dynamic capabilities for learning and internationalization

Purpose

– The purpose of this paper is to examine the development process of dynamic capabilities.

Design/methodology/approach

– The paper adopts a qualitative, longitudinal participant-observation research design. A single case study firm was observed over a ten-year period of active researcher engagement allowing for the collection of rich data on the development and deployment of dynamic capabilities as they evolved.

Findings

– Dynamic capabilities can be identified as sensing, seizing and transforming. They are capable of intentional development by managers through strategic decision making and deliberative learning, within a path-dependent evolution.

Research limitations/implications

– A longitudinal single case study allowed for a close look at the development of dynamic capabilities, exploring the context and conditions that facilitated change and tracing the evolution of the organization’s processes. However, this study remains subject to the limits of a single case approach. Future cross-sectional research would be able to test the conceptual model and allow for generalization of the findings to other populations of firms.

Practical implications

– The dynamic capability concept has been criticized for being of little practical use to managers. This research shows the process of intentional dynamic capability development, offering insights to practicing managers.

Originality/value

– This research adds to the relatively scant base of empirical work on dynamic capabilities and offers a conceptual model of dynamic capability development. The paper contributes to the neglected area of dynamic capabilities in SME’s, showing that the dynamic capability concept is relevant to this sector. The paper provides insight for practitioners by showing that intentional dynamic capability development is achievable.

Waste in NPD processes of German SMEs

Purpose

– This study deals with waste in New Product Development (NPD) processes of SMEs. The purpose of this paper is to reveal opportunities for SMEs to overcome resource constraints in their NPD process.

Design/methodology/approach

– The authors employed qualitative key informant interviews. This design was chosen because research in this field is still limited. The authors performed 49 interviews in engineering-oriented German SMEs to examine the dimension of waste in NPD processes. The data were collected by conducting semi-structured, face-to-face interviews.

Findings

– The study highlights substantial waste types such as waiting times, rework and duplication of work. In contrast to contemporary literature, waste of material is considered to be relevant in particular for NPD processes of SMEs. In addition to that, the authors found that waste drivers differ to a great extent between the study and the hitherto literature on larger companies.

Research limitations/implications

– The overall outcome of this study can help organisations to address waste in NPD more thoroughly. The research presented was not specifically designed to draw statistical generalisations. For this reason, the results may not be applicable to all SMEs.

Practical implications

– Based on waiting times as the major waste type in NPD processes of SMEs, the authors claim that firms should pay special attention to disruptions of these processes.

Originality/value

– The paper gives insights into current waste types in the NPD processes of SMEs. Moreover, it uncovers the NPD activities which can lead to waste.

Strategic consensus on manufacturing strategy content

Purpose

– Strategic consensus between operators and managers is an important means to accomplish a successful manufacturing strategy (MS) process. Previous studies largely left out individual operators from this concept. Therefore, the purpose of this paper is to empirically examine the level of strategic consensus on the MS within the operations function, that is, the operators’ and managers’ perceptions of MS.

Design/methodology/approach

– Interviews were conducted with both operators and managers at three small- and medium-sized enterprises in Sweden. The MS dimensions were selected based on previous research; the data were analysed by using thematic coding.

Findings

– The study shows that the levels of strategic consensus on the MS vary among companies. Even when strategic consensus exists between operators and managers, their underlying reasons often differ. Furthermore, the levels of strategic consensus vary among MS dimensions. The companies’ usage of information-sharing channels, along with their size and position in the supply chain, can be important for the level of strategic consensus.

Originality/value

– This paper contributes to the body of knowledge in three ways. First, it expands the scope of the MS dimensions under study, thus offering a stronger, resource-based perspective on MS and strategic consensus than what earlier studies showed. Second, it goes beyond the management level by including both managers and operators as the unit of analysis. Third, compared to previous research, it focuses on a new context and is based on in-depth case studies.

Emergent approach to knowledge management by small companies: multiple case-study research

Purpose

The purpose of this paper is to investigate the knowledge management (KM) approach followed by small companies. In particular, after introducing the notion of emergent approach, the paper aims to examine if that notion is useful to properly describe the way small businesses approach their KM activities.

Design/methodology/approach

The study is based on the results of a qualitative survey involving 12 owners and managers of small companies belonging to the knowledge-intensive business services (KIBS) sector. The survey uses the case-study method.

Findings

The findings confirm that the approach to KM adopted by small companies can be defined as emergent: in the analysed cases, there were no formal KM plans, despite the fact that the examined companies have all introduced various KM practices. This shows that there can be the need to define KM approaches that better fit smaller companies.

Practical implications

Although an emergent approach may be seen as unplanned, companies should learn how to be aware of their KM practices and, once they are, how to develop them properly. For executives to be able to recognize emergent KM practices, notions and elements of KM need to be introduced in their business background and professional education (e.g. how KM fits into a small organization, what KM processes are, what KM tools and practices exist, etc.).

Originality/value

The study contributes to the understanding of KM in really small entities, still a much under-explored topic.

Performance measurement approach for innovation capability in SMEs

Purpose

– The purpose of this paper is to present a framework for improving innovation capability through performance measurement in small- and medium-sized enterprises (SMEs). The development of an organisation’s innovation capability is considered increasingly important in the current literature. Developing such capability is essential, as innovation plays a key role in the survival and growth of organisations. A review of current literature highlights the need for a framework on the development of innovation capability, especially in SMEs.

Design/methodology/approach

– A literature review was used to form an understanding of previous work in the research area. Previous literature was used to define the key concepts and further to build the conceptual framework.

Findings

– As a result of the study, a framework for improving innovation capability through performance measurement in SMEs is presented. Key issues that must be addressed are highlighted and discussed.

Practical/implications

– The paper contains suggestions for improving innovation capability through performance measurement. Using the results of this study, practitioners can enhance their innovation capability by measurement and by taking better account of different situations regarding the development of innovation capability. The framework clarifies the issue of how innovation capability and its determinants can be managed through measurement, and therefore it assists especially SMEs in their attempts to cope with the increasing need for innovation as an asset of their business performance.

Originality/value

– There are very few examples in the current literature of frameworks for the issue, especially for SMEs. The role of performance measurement in developing innovation capability is also ignored in the current literature. The paper is relevant for academics, as it clarifies the existing body of knowledge and provides a platform for future research.