Towards a contingency approach to performance measurement: an empirical study in Scottish SMEs

摘要

Purpose - The literature emphasizes the important role performance measurement systems (PMS)rnplay in supporting organizational development in small and medium enterprises (SMEs). However,rnthere are very few empirical and theoretical studies on the factors that influence performancernmeasurement practices in SMEs. This paper aims to contribute to filling this gap using bothrntheoretical and empirical approaches.rnDesign/methodology/approach - A literature review and interviews were used to identify fourrnkey contingency factors for PMS in SMEs. A qualitative research design involving a multiple casernstudy methodology was carried out to investigate how these factors influence performancernmeasurement.rnFindings - The relationship between the contingency factors and performance measurement werernformalized in four theoretical propositions. First corporate governance structure is one of the mainrnfactors influencing performance measurement adoption and use. Second, advanced informationrnpractices and advanced behaviours on the part of the people involved appear to be a necessaryrncondition for the effective implementation and use of PMS in SMEs. Third, a change in a firm'srnbusiness model seems to lead to the development of an improved PMS. Finally, the successfulrnimplementation of a PMS seems to be driven by an authoritative management style.rnResearch limitations/implications - Contingency factors were studied independently. Futurernresearch might investigate how these factors collectively influence performance measurementrnpractices to make interdependence more explicit.rnPractical implications - The theoretical propositions provide useful knowledge for defining arnmethodology and managerial tool to support performance measurement in SMEs.rnOriginality/value - This paper defines key contingency factors influencing performancernmeasurement in SMEs; it contributes to clarifying how these factors could influence performancernmeasurement practices in companies.