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Traditional or contemporary? The prevalence of performance measurement system types

Author

Listed:
  • T.F. Burgess
  • T.S. Ong
  • N.E. Shaw

Abstract

Purpose - The paper seeks to examine the prevalence of traditional versus contemporary (balanced) types of performance measurement system (PMS) in an emerging economy and link incidence to key organisational factors of size, age and ownership. Design/methodology/approach - Data on design and use of PMSs are collected through a questionnaire survey (n=149) of electrical and electronic firms. Hierarchical cluster analysis identifies two PMS groups and assigns them to traditional and contemporary types, and then links them to key organisational factors via contingency tables. Findings - Use of contemporary PMS dominates the sample. PMS type is significantly associated with size and ownership, while age is not. Firms more likely to use contemporary PMSs are foreign‐owned and large in terms of number of employees. Research limitations/implications - This survey‐based research employs multivariate analysis and therefore standard limits for such statistical work apply. Results rely on hierarchical cluster analysis. Practical implications - If balanced approaches are more effective, as is argued by many, then a firm without such a style of PMS is at a competitive disadvantage given the high incidence of use. Originality/value - The paper establishes a framework for a contemporary type of PMS that integrates balanced scorecard and other balanced approaches, then collects data in an emerging economy. Links use of contemporary PMS type to key organisational factors.

Suggested Citation

  • T.F. Burgess & T.S. Ong & N.E. Shaw, 2007. "Traditional or contemporary? The prevalence of performance measurement system types," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(7), pages 583-602, September.
    • Handle: RePEc:eme:ijppmp:v:56:y:2007:i:7:p:583-602
    DOI: 10.1108/17410400710823633
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    Citations

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    Cited by:

    1. Tze San Ong & Boon Heng Teh & Ah Suat Lee, 2019. "Contingent Factors and Sustainable Performance Measurement (SPM) Practices of Malaysian Electronics and Electrical Companies," Sustainability, MDPI, vol. 11(4), pages 1-33, February.
    2. Shahryar Sorooshian & Nursofea Iman Ahmad Suffian, 2017. "Small and Medium Enterprises’ Risk Modeling," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 197-201.
    3. Nurisyal Muhamad & Sofiah Md Auzair & Amizawati Mohd Amir & Md Daud Ismail, 2016. "Measuring Sustainability Performance Measurement System," EuroEconomica, Danubius University of Galati, issue 3(12), pages 182-199, JUNE.
    4. Alina Alecse Stanciu & Dumitru-Alexandru Stoica & Monika Brigitte Surgun & Nicolae Ileana Traistaru & Aurelian Vranceanu, 2019. "Measuring the Organizational Performance: A Theoretical Overview," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 160-163, March.
    5. Nurisyal Muhamad & Sofiah Md Auzair & Amizawati Mohd Amir & Md Daud Ismail, 2016. "Measuring Sustainability Performance Measurement System," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(3), pages 182-199, JUNE.
    6. Dwivedi, Abhishek & Pawsey, Nicholas, 2023. "Examining the drivers of marketing innovation in SMEs," Journal of Business Research, Elsevier, vol. 155(PB).

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