Performance Measurement Systems implementation in small and mediumsized companies: An organizational change perspective

Journal title MANAGEMENT CONTROL
Author/s Nicola Castellano, Lorenzo Leto
Publishing Year 2021 Issue 2021/1
Language Italian Pages 22 P. 129-150 File size 257 KB
DOI 10.3280/MACO2021-001007
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

Despite the recognized relevance of Performance Measurement Systems (PMSs), scholars and practitioners seem to have paid limited attention to their implementation. Certain studies show that significant complexity elements could comprise the introduction of a PMS. These elements refer, among others, to: 1) a PMS’s inadequate or bad design and adaptation to the specific context in which it will be applied; 2) problems occurring during the implementation process. While a significant strand of literature is focused on the former, the critical aspects of the PMS implementation process have yet to be explored. In order to do so, using organizational change theory from the PMS literature may be particularly fruitful way to understand the conditions required for a successful implementation. Focusing on research on specific contexts, particularly on small and medium-sized companies (SMEs), could provide researchers with other elements of analysis. The latter is due to SME’s significant influence on economic development, within or outside the domestic boundaries, as well as the particular characteristics that distinguish such companies from larger ones. Given the above considerations, this paper contributes to the analysis of a PMS’s implementation in SMEs by supporting change management theories aimed at formulating description that could be helpful with increasing such initiatives’ success rate.

Keywords: Performance measurement systems implementation, Small companies, Organizational change, Enabling and hindering factors

  1. Cocca P., Alberti M. (2010), A framework to assess performance measurement systems in SMEs, International Journal of Productivity and Performance Management, 59, 2, pp. 186-200.
  2. Costantini A., Zanin F., Fasan M. (2019), Strategia, incertezza ambientale e balanced scorecard. Quali impatti sulla performance aziendale?, Management Control, 2, pp. 39-65. DOI: 10.3280/MACO2019-002003
  3. De Waal A.A., Counet H. (2009), Lessons learned from performance management systems implementations, International Journal of Productivity and Performance Management, 58, 4, pp. 367-390.
  4. Dossi A., Patelli L. (2008), The decision-influencing use of performance measurement systems in relationships between headquarters and subsidiaries, Management Accounting Research, 19, 2, pp. 126-148.
  5. Ferreira A., Otley D. (2009), The design and use of performance management systems: An extended framework for analysis, Management Accounting Research, 20, 4, pp. 263-282.
  6. Ford J.D., Ford L.W., D’Amelio A. (2008), Resistance to change: The rest of the story, The Academy of Management Review, 33, 2, pp. 362-377.
  7. Garengo P., Bernardi G. (2007), Organizational capability in SMEs: Performance measurement as a key system in supporting company development, International Journal of Productivity and Performance Management, 56, 5-6, pp. 518-532.
  8. Garengo P., Biazzo S., Bititci U. (2005), Performance measurement in SMEs: a review for a research agenda, Journal of Enterprise Information Management Reviews, 7, 1, pp. 25-47.
  9. Giovannoni E., Maraghini M. P. (2013), The challenges of integrated performance measurement systems: Integrating mechanisms for integrated measures, Accounting, Auditing and Accountability Journal, 26, 6, pp. 978-1008.
  10. Greiner L.E., (1972), Evolution and revolution as organizations grow, Harvard Business Review, 50, 4, pp. 37-46.
  11. Hayes J. (2018), The Theory and Practice of Change Management (5th Edition), London, Macmillan Palgrave.
  12. Heinicke A. (2018), Performance measurement systems in small and medium-sized enterprises and family firms: a systematic literature review, Journal of Management Control, 28, 4, pp. 457-502.
  13. Hiatt J.M. (2006), ADKAR: A Model for Change in Business, Government andour Community, Loveland, CO, Prosci Research.
  14. Hudson M., Smart A., Bourne M. (2001), Theory and practice in SME performance measurement systems, International Journal of Operations & Production Management, 21, pp. 1096-1111.
  15. Hudson M., Smith D. (2007), Implementing strategically aligned performance measurement in small firms, International Journal of Production Economics, 106, 2, pp. 393-408.
  16. Hussain M.M., Hoque Z. (2002), Understanding non-financial performance measurement practices in Japanese banks: A new institutional sociology perspective, Accounting, Auditing & Accountability Journal, 15, 2, pp. 162-183.
  17. Hutt M.D., Walker B.A., Frankwick G.L. (1995), Hurdle the cross‐functional barriers to strategic change, Sloan Management Review, 36, 3, pp. 22‐30.
  18. Isabella L. A. (1990), Evolving interpretations as a change unfolds: How managers construe key organizational events, Academy of Management Journal, 33, 1, pp. 7-41.
  19. Jardioui M., Garengo P., El Alami S. (2017) The Impact of Organizational Culture on Performance Measurement System Design, Implementation and Use: Evidence from Moroccan SMEs. In IFIP International Conference on Advances in Production Management Systems (pp. 553-559), Cham, Springer.
  20. Judson A. (1991), Changing behavior in organizations: Minimizing resistance to change, Cambridge, MA, Basil Blackwell
  21. Kanter R.M., Stein B., Jick T.D. (1992), The Challenge of Organizational Change: How Companies Experience It and Leaders Guide It, New York, Free Press.
  22. Kotter J.P. (1995), Leading Change: Why Transformation Efforts Fail, Harvard Business Review, 73, pp. 59-67.
  23. Kotter J.P. (2012a), Accelerate!, Harvard Business Review, 90, 11, pp. 45-58.
  24. Kotter J.P. (2012b), Leading change, Boston, Harvard Business Review Press.
  25. Kotter J.P., Schlesinger L.A. (1979), Choosing Strategies for Change, Harvard Business Review, 57, 2, pp. 106-114.
  26. Lau C.M. Woodman R.W. (1995), Understanding organizational change: A schematic perspective, Academy of Management Journal, 38, 2, pp. 537-554.
  27. Lewin K. (1947), Frontiers in group dynamics: concept, method and reality in social science; social equilibria and social change, Human Relations, 1, pp. 5-41.
  28. Lewy C., Du Mee L. (1998), The ten commandments of balanced scorecard implementation, Management Control and Accounting, April, pp. 34-36.
  29. Lippitt R., Watson J., Westley B. (1958), The Dynamics of Planned Change, New York, Harcourt, Brace and World.
  30. Luecke R. (2003), Managing Change and Transition, Boston, Harvard Business School Press.
  31. Malagueño R., Lopez-Valeiras E., Gomez-Conde J. (2018), Balanced scorecard in SMEs: effects on innovation and financial performance, Small Business Economics, 51, pp. 221-244.
  32. McCunn P. (1998), The balanced scorecard: the eleventh commandment, Management Accounting, 76, 1, pp. 34-36.
  33. Morrison E.W., Milliken F.J. (2000), Organizational silence: a barrier to change and development in a pluralistic world, Academy of Management Review, 25, 4, pp. 706‐25.
  34. Norhayati M.A., Siti-Nabiha A.K. (2009), A case study of the performance management system in a Malaysian government linked company, Journal of Accounting & Organizational Change, 5, 2, pp. 243-276.
  35. Nudurupati S.S., Bititci U.S., Kumar V., Chan F.T.S. (2011), State of the art literature review on performance measurement, Computers and Industrial Engineering, 60, 2, pp. 279-290.
  36. Panno A. (2019), Performance measurement and management in small companies of the service sector: evidence from a sample of Italian hotels, Measuring business excellence, 24, 2, pp. 133-160.
  37. Pardo Del Val M., Martínez Fuentes C. (2003), Resistance to change: a literature review and empirical study, Management Decision, 41, 2, pp. 148-155.
  38. Rafferty A.E., Jimmieson N.L., Armenakis A.A. (2013), Change readiness: a multilevel review, Journal of Management, 39, 1, pp. 110-135.
  39. Rafferty A. E., Restubog S. L. D. (2017), Why do employees’ perceptions of their organization’s change history matter? The role of change appraisals, Human Resource Management, 56, pp. 533-550.
  40. Rosenbaum D., More E., Steane P., (2018), Planned organisational change management: Forward to the past? An exploratory literature review, Journal of Organizational Change Management, 31, 2, pp. 286-303.
  41. Scapens R.W.m Roberts J. (1993), Accounting and control: a case study of resistance to accounting change, Management Accounting Research., 4, 1, pp. 1‐32.
  42. Schein E.H. (2010), Organizational culture and leadership (4th ed.), San Francisco, Jossey-Bass.
  43. Sgrò F., Palazzi F., Ciambotti M., Gelsomini L. (2020), Factors promoting and hindering the adoption of management accounting tools. Evidence from Italian manufacturing SMEs, Management Control, Suppl. 1, pp. 19-38. DOI: 10.3280/MACO2020-001-S1003
  44. Sousa S., Aspinwall E. (2010), Development of a performance measurement framework for SMEs, Total Quality Management and Business Excellence, 21, 5, pp. 475-501.
  45. Stouten J., Rousseau D.M., De Cremer D. (2018), Successful organizational change: Integrating the management practice and scholarly literatures, Academy of Management Annals, 12, 2, pp. 752-788.
  46. Taylor A., Taylor M. (2013), Antecedents of effective performance measurement system implementation: An empirical study of UK manufacturing firms, International Journal of Production Research, 51, 18, pp. 5485-5498.
  47. Taylor A., Taylor M. (2014), Factors influencing effective implementation of performance measurement systems in small and medium-sized enterprises and large firms: A perspective from Contingency Theory, International Journal of Production Research, 52, 3, pp. 847-866.
  48. Todnem By R. (2005), Organisational change management: a critical review, Journal of Change Management, 5, 4, pp.369-380.
  49. Tuomela T.S. (2005), The interplay of different levers of control: A case study of introducing a new performance measurement system, Management Accounting Research, 16, 3, pp. 293-320.
  50. Yetano A. (2013), What drives the institutionalization of performance measurement and management in local government, Public Performance and Management Review, 37, 1, pp. 59-86.
  51. Yin R., (2003), Case study research: design and methods, 3rd edition, Sage, Thousand Oaks.
  52. Van Buren M.E., Safferstone T. (2009), The Quick Wins Paradox, Harvard Business Review, 116, pp. 54-61.
  53. Van de Ven A., Poole M.S. (1995), Explaining development and change in organizations. Academy of Management Review, 20, pp. 510-540.
  54. Weiss A. (2003), Organizational consulting. How to be an effective internal change agent, Hoboken, John Wiley & Sons.
  55. Adams J.D., Hayes J., Hopson B. (1976), Transition: Understanding and Managing Personal Change, London, Martin Robertson.
  56. Akbar R., Pilcher R. A., Perrin B. (2015), Implementing performance measurement systems: Indonesian local government under pressure, Qualitative Research in Accounting and Management, 12, 1, pp. 3-33.
  57. Armenakis A.A., Bedeian A.G. (1999), Organizational change: A review of theory and research in the 1990s, Journal of Management, 25, 3, pp. 293-315.
  58. Argyris C., Kaplan R.S. (1994), Implementing new knowledge: the case of activity-based costing, Accounting Horizons, 8, 3, pp. 83-105.
  59. Beckhard R., Harris R.T. (1987), Organizational Transitions: Managing Complex Change, Second Edition, Boston, Addison Wesley OD Series.
  60. Beer M. (1980), Organization change and development: A systems view, Santa Monica, Goodyear,
  61. Beer M., Eisenstat R.A., Spector B. (1990), Why Change Programs Don't Produce Change, Harvard Business Review, 68, 6, pp. 158-166.
  62. Bordia P., Restubog S.L.D., Jimmieson N.L., Irmer B.E. (2011), Haunted by the past: Effects of poor change management history on employee attitudes and turn-over, Group & Organization Management, 36, pp. 191-222.
  63. Bourne M., Mills J., Wilcox M., Neely A., Platts, K. (2000), Designing, implementing and updating performance measurement systems, International Journal of Operations and Production Management, 20, 7, pp. 754-771.
  64. Bourne M., Neely A., Mills J., Platts, K. (2003a), Implementing performance measurement systems: a literature review, International Journal of Business Performance Management, 5, 1, pp. 1‐24.
  65. Bourne M., Neely A., Mills J., Platts K. (2003b), Why some performance measurement initiatives fail: lessons from the change management literature, International Journal of Business Performance Management, 5, 2-3, pp. 245-269.
  66. Branciari S. (1996), I Sistemi di Controllo nella Piccola Impresa, Torino, Giappichelli.
  67. Brem A., Kreusel N., Neusser C. (2008), Performance Measurement in SMEs: Literature Review and Results from a German Case Study, International Journal of Globalisation and Small Business, 2, 4, pp. 411-427.
  68. Bridges W. (1991), Managing Transitions: Making the Most of Change, Reading, MA, Addison‐Wesley.
  69. Burke W.W. (2018), Organization change: Theory and practice, Los Angeles, SAGE.
  70. Burns J., Scapens R.W. (2000), Conceptualizing management accounting change: an institutional framework, Management Accounting Research, 11, 1, pp. 3-26.
  71. Castellano N. (2011), Modelli e misure di performance aziendale: analisi della letteratura e spunti di ricerca, Management Control, 1, pp. 41-63. DOI: 10.3280/MACO2011-001003
  72. Castellano N. (2012), La misurazione delle performance per le piccole imprese. Strumenti di misurazione e processi di controllo, Torino, Giappichelli Editore.
  73. Chiucchi M.S., Giuliani M., Marasca S. (2014), The design, implementation and use of intellectual capital measurement: a case study, Management Control, 2, pp. 143-168. DOI: 10.3280/MACO2014-002007
  74. Chiucchi M.S. (2012), Il metodo dello studio di caso nel management accounting, Torino, Giappichelli Editore.

  • Value-based Management System e performance. Il ruolo di moderazione della strategia ibrida e della turbolenza ambientale Filippo Zanin, Giulio Corazza, in MANAGEMENT CONTROL 3/2024 pp.63
    DOI: 10.3280/MACO2023-003004
  • Creatività organizzativa ed individuale nelle piccole e medie imprese: il ruolo del sistema di controllo Daniela Di Berardino, Faisal Anees, in MANAGEMENT CONTROL 1/2024 pp.227
    DOI: 10.3280/MACO2024-001011
  • Metaverse: Value creation and performance measurement across physical and digital world Rosita Capurro, Raffaele Fiorentino, Stefano Garzella, Stefano Marciano, in MANAGEMENT CONTROL 1/2024 pp.131
    DOI: 10.3280/MACO2024-001007

Nicola Castellano, Lorenzo Leto, Implementazione di Sistemi di Misurazione delle Performance nelle PMI: elementi di analisi nella prospettiva del cambiamento organizzativo in "MANAGEMENT CONTROL" 1/2021, pp 129-150, DOI: 10.3280/MACO2021-001007