University of Twente Student Theses


Performance Measurement System Development in SMEs: Testing & Refining The Circular Methodology

Langwerden, E.F. (2015) Performance Measurement System Development in SMEs: Testing & Refining The Circular Methodology.

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Abstract:One main obstacle for Performance Measurement Systems (PMS) implementation in Small and Medium Enterprises (SMEs) are non-formalized strategies, because the strategic rationalization loop, generally used in PMS development, cannot be used to translate strategy into measurable performances. Therefore, to overcome this obstacle, The Circular Methodological approach is bottom-up, using the operational reality as a starting point. This article offers a contribution to research on PMS development in SME’s by refining and validating The Circular Methodology, using an action research approach, in a small manufacturer operating in the food sector. The methodological nature was found to have two main benefits. Firstly, the strategy formulation process as well as the desired dashboard design process are positively affected by the bottom-up approach, since the constrains and affordances of the operations were understood and taken into account. Secondly, studying the emergent strategy and operational reality created significant input during the strategy formulation process. Several methodology implementation obstacles as well as respective improvements have been identified. Severe obstacles found are the high amount of tacit knowledge and non-formalized practices, which limit the ease of data gathering. Techniques to overcome these have been identified, however future research should test the identified and alternative techniques.
Item Type:Essay (Bachelor)
Van der Moolen Foodgroup, Enschede, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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