Abstract
Purpose – The purpose of this paper is to outline the anatomy of firms which adopt comprehensive performance measurement (PM) systems in order to gain an understanding of how internal (organisational capabilities) and external (perceived environmental uncertainties) factors shape performance measurement practices.
Design/methodology/approach – This paper hypothesises that firms dominated by organic capabilities and operating in unpredictable markets are more likely to adopt comprehensive PM systems. The statistical test of these hypotheses is based on a 2008 survey of 299 Danish firms.
Findings – This paper concludes that a limited number of internal and external factors have a significant influence on the adoption of PM systems. There is no consistent pattern, however, between the different sub-categories of organisational capabilities/perceived environmental uncertainties and PM adoption.
Originality/value – Much has been said about how changes in the environment and business structure require firms to develop new ways to measure performance. Less has been done to study whether firms adopting comprehensive PM systems actually match the characteristics of the “new
economy”. The findings from this study indicate that the relationship between PM adoption and the organisational characteristics/external environment is more complicated than anticipated.
Design/methodology/approach – This paper hypothesises that firms dominated by organic capabilities and operating in unpredictable markets are more likely to adopt comprehensive PM systems. The statistical test of these hypotheses is based on a 2008 survey of 299 Danish firms.
Findings – This paper concludes that a limited number of internal and external factors have a significant influence on the adoption of PM systems. There is no consistent pattern, however, between the different sub-categories of organisational capabilities/perceived environmental uncertainties and PM adoption.
Originality/value – Much has been said about how changes in the environment and business structure require firms to develop new ways to measure performance. Less has been done to study whether firms adopting comprehensive PM systems actually match the characteristics of the “new
economy”. The findings from this study indicate that the relationship between PM adoption and the organisational characteristics/external environment is more complicated than anticipated.
| Original language | English |
|---|---|
| Journal | International Journal of Operations and Production Management |
| Volume | 32 |
| Issue number | 1 |
| Pages (from-to) | 4-27 |
| Number of pages | 24 |
| ISSN | 0144-3577 |
| DOIs | |
| Publication status | Published - 2012 |
| Externally published | Yes |