Traditional or contemporary? The prevalence of performance measurement system types
International Journal of Productivity and Performance Management
ISSN: 1741-0401
Article publication date: 25 September 2007
Abstract
Purpose
The paper seeks to examine the prevalence of traditional versus contemporary (balanced) types of performance measurement system (PMS) in an emerging economy and link incidence to key organisational factors of size, age and ownership.
Design/methodology/approach
Data on design and use of PMSs are collected through a questionnaire survey (n=149) of electrical and electronic firms. Hierarchical cluster analysis identifies two PMS groups and assigns them to traditional and contemporary types, and then links them to key organisational factors via contingency tables.
Findings
Use of contemporary PMS dominates the sample. PMS type is significantly associated with size and ownership, while age is not. Firms more likely to use contemporary PMSs are foreign‐owned and large in terms of number of employees.
Research limitations/implications
This survey‐based research employs multivariate analysis and therefore standard limits for such statistical work apply. Results rely on hierarchical cluster analysis.
Practical implications
If balanced approaches are more effective, as is argued by many, then a firm without such a style of PMS is at a competitive disadvantage given the high incidence of use.
Originality/value
The paper establishes a framework for a contemporary type of PMS that integrates balanced scorecard and other balanced approaches, then collects data in an emerging economy. Links use of contemporary PMS type to key organisational factors.
Keywords
Citation
Burgess, T.F., Ong, T.S. and Shaw, N.E. (2007), "Traditional or contemporary? The prevalence of performance measurement system types", International Journal of Productivity and Performance Management, Vol. 56 No. 7, pp. 583-602. https://doi.org/10.1108/17410400710823633
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited