Theory and practice in SME performance measurement systems

By Mel Hudson, Andi Smart, Mike Bourne. 2001

896 citations recorded by the source corpus.

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.

Subfields: Management Information Systems

View Paper: https://www.semanticscholar.org/paper/b9ea34b0b759447a71bcea83bfd5a6c4c23dac83

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In Management Information Systems

Citations in the corpus

Balancing dilemmas of the balanced scorecard (2006, background): “The literature reveals that very few contributions are directly linked to SMEs (Andersen et al., 2001; Hudson et al., 2001; Tennant and Tanoren, 2005).”
Why the Balanced Scorecard Fails in SMEs: A Case Study (2011, background): “SMEs can clearly obtain value from PMS but there are significant barriers to implementation lying in resource limitations and the fact that it can be too strategically orientated (Hudson et al., 2001).”
Improving control through effective performance measurement in SMEs (2001, background): “These advise that the process needs to be very resource e¶ ective, produce notable short term as well as long term bene ts to maintain the enthusiasm and momentum of the development team and should be dynamic and exible enough to cope with strategic changes (Hudson et al. 2001).”
Towards a new model of success and performance in SMEs (2012, background): “Factors critical for success may be re-evaluated or changed, definitions of success may be adjusted and perhaps new targets set in accordance with the overall business environment in which the business operates (Hudson et al., 2001; Hudson Smith and Smith, 2007).”
Intellectual capital and SMEs’ performance: A structured literature review (2019, background): “Finally, despite nontrivial differences between large firms and SMEs (Bocconcelli et al., 2018; Greiner, 1998; Haltiwanger et al., 2013; Hudson et al., 2001; Shrader et al., 1989; SMEAR, 2012; Welsh et al., 1982), only a few studies have attempted to explore and unpack how firm size affects…”
Supply chain performance measurement framework for small and medium scale enterprises (2009, background): “The financial dimension of performance is critical for both large and small companies, but given the lack of a monetary safety, net to absorb the impact of short-term fluctuations resulting from change is paramount in SMEs (Hudson et al., 2001).”
Strategy development by SMEs for competitiveness: a review (2008, background): “Other major challenges for SMEs are up gradation of technology (Kleindl, 2000), human resource development (Hudson et al., 2001), new product development (Sonia and Francisca, 2005) and finally managing its supply chain through collaboration and partnerships with customers, suppliers, distributors, ”
Performance measurement and management: a literature review and a research agenda (2010, methodology): “Although extensive research has been carried out to investigate the needs and characteristics of PMSs in large organizations, there is a distinct lack of published research on issues related to SMEs (Hudson et al., 2000).”
Further Evidence on the Role of Gender in Financial Performance (2004, background): “One other possible line of related research could explore an extended definition of business success beyond financial performance, a recent trend seen in the performance measurement literature (Hudson, Smart, and Bourne 2001).”