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The Practice of Performance Measurement in Small and Medium Enterprises: Empirical Evidence from a Developed Economy Perspective

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  • Abdul Morlai Kanu
  • Ibrahim Sesay

Abstract

This paper examines the practice of performance measurement (PM) among Small and Medium Enterprises (SMEs) within the construction industry. The study was conducted by using a questionnaire survey with random, systematic and stratified sampling being employed to select respondents from a pool of different construction companies. The data was analysed by using descriptive statistical analysis. The results suggest that the majority of SMEs do not measure their performance. Respondents identified customers’ satisfaction as the most appropriate reason for implementing performance measurement. Furthermore, most of the SMEs satisfy their customers by meeting project schedule. The study further indicated that limited human resources are a major barrier that prevents SMEs from implementing performance measurement systems.

Suggested Citation

  • Abdul Morlai Kanu & Ibrahim Sesay, 2016. "The Practice of Performance Measurement in Small and Medium Enterprises: Empirical Evidence from a Developed Economy Perspective," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 2(3), pages 160-173.
    • Handle: RePEc:rss:jnljbs:v2i3p5
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    References listed on IDEAS

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    1. Suwit Srimai & Jack Radford & Chris Wright, 2011. "Evolutionary paths of performance measurement," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 60(7), pages 662-687, September.
    2. Milind Kumar Sharma & Rajat Bhagwat & Govind Sharan Dangayach, 2005. "Practice of performance measurement: experience from Indian SMEs," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 1(2), pages 183-213.
    3. Schmitz, J. & Platts, K. W., 2004. "Supplier logistics performance measurement: Indications from a study in the automotive industry," International Journal of Production Economics, Elsevier, vol. 89(2), pages 231-243, May.
    4. Michail Kagioglou & Rachel Cooper & Ghassan Aouad, 2001. "Performance management in construction: a conceptual framework," Construction Management and Economics, Taylor & Francis Journals, vol. 19(1), pages 85-95, January.
    5. Alexander Brem & Nico Kreusel & Christian Neusser, 2008. "Performance measurement in SMEs: literature review and results from a German case study," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 2(4), pages 411-427.
    6. Brush, Candida G. & Vanderwerf, Pieter A., 1992. "A comparison of methods and sources for obtaining estimates of new venture performance," Journal of Business Venturing, Elsevier, vol. 7(2), pages 157-170, March.
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