Theory and practice in SME performance measurement systems

TLDR

The study evaluates whether strategic performance measurement system development processes are suitable for SMEs. The authors assess ten PM approaches, construct a theory‑based typology, and apply it to empirical data from SMEs. The study identifies a theoretically congruent PM process, reveals a gap between theory and SME practice, and offers recommendations to improve PM process development.

Abstract

Describes research undertaken to evaluate the appropriateness of strategic performance measurement (PM) system development processes for small‐ and medium‐sized enterprises (SMEs). An evaluation is undertaken of ten PM approaches found in the literature. To facilitate this evaluation a typology is presented which synthesises current theory. This evaluation resulted in the identification of a process, based on its congruency to the theoretical model, which is used for an empirical investigation. Empirical data from SMEs is collected and analysed using the typology. This indicates a discontinuity between current theory and the requirements of practitioners in small companies. The paper concludes with a number of recommendations to facilitate the development of appropriate PM processes for SMEs.