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Organizational Performance Measurement and Evaluation Systems in Smes: The Case of the Transforming Industry in Portugal

Author

Listed:
  • Aquilino Felizardo

    (Consultant in Management, Phd Student, University of Évora and CEFAGE-UE)

  • Elisabete G.S. Félix

    (Assistant Professor, University of Évora and CEFAGE-UE)

  • João P.C. F. Thomaz

    (Associate Professor, ISLA-Leiria, CEG-IST (Lisbon, Portugal) and GP2/CIn/UFPE (Recife-PE, Brazil))

Abstract

The competitiveness of organizations depends, among other things, of their performance levels. For such, it is vitally important that they have a measurement and evaluation system that, from a set of indicators, provides them reliable information to reflect their goals and evaluate their performances. The aims of this study are: (i) to identify the most discussed approaches in the literature to evaluate the organizational performance, and (ii) to carry out a diagnosis of how small and medium enterprises with economic activity in Portugal measure and operationalize the evaluation of their performance. To meet the objectives of the study, we proceeded to the analysis of published studies in scientific journals and conducted twelve interviews in SMEs. The results indicate that, in addition to the majority of the studied organizations not having a formal process of their strategy, they also do not measure their results in an integrated system that would allow them to make an evaluation according to their strategic goals.

Suggested Citation

  • Aquilino Felizardo & Elisabete G.S. Félix & João P.C. F. Thomaz, 2017. "Organizational Performance Measurement and Evaluation Systems in Smes: The Case of the Transforming Industry in Portugal," CEFAGE-UE Working Papers 2017_05, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2017_05
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    References listed on IDEAS

    as
    1. Lebas, Michel J., 1995. "Performance measurement and performance management," International Journal of Production Economics, Elsevier, vol. 41(1-3), pages 23-35, October.
    2. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    3. Waggoner, Daniel B. & Neely, Andy D. & P. Kennerley, Mike, 1999. "The forces that shape organisational performance measurement systems: An interdisciplinary review," International Journal of Production Economics, Elsevier, vol. 60(1), pages 53-60, April.
    4. G. Anand & Rambabu Kodali, 2008. "Performance measurement system for lean manufacturing: a perspective from SMEs," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 2(4), pages 371-410.
    5. Ghalayini, Alaa M. & Noble, James S. & Crowe, Thomas J., 1997. "An integrated dynamic performance measurement system for improving manufacturing competitiveness," International Journal of Production Economics, Elsevier, vol. 48(3), pages 207-225, February.
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    More about this item

    Keywords

    Organizational Performance; Measurement and Evaluation Systems of the Organizational Performance.;

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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