Impact of the changing business environment on performance measurement and management practices

Sai S. Nudurupati, Patrizia Garengo and Umit S. Bititci

International Journal of Production Economics, 2021, vol. 232, issue C

Abstract: While there is abundant literature in the field of performance measurement systems and performance management practices (PMM), there is little research into how the current highly volatile, uncertain and ambiguous operating environment are affecting the way organisations measure and manage performance. The literature suggests that business trends are indeed affecting the way organisations are managed in general, but their effect on PMM is rarely investigated. Thus, the purpose of this paper is to explore how current business trends are impacting PMM. A literature review reveals five business trends and develops an analytical framework based on organisational control theory. This framework is then used to explore the impact of these business trends through fine-grained case studies across four diverse organisations. Findings suggest that emerging technologies enable collaborative networks creating opportunities for co-creating value while, at the same time, fostering innovation. The findings are theorised using organisational control dimensions that lead to a number of propositions concerning: how the use and purpose of PMM is changing; how strategic objectives are expressed and deployed with particular differences in strategic and turbulent environments; changes in the focus and scope of how performance is measured and reviewed. The paper contributes to existing knowledge by explaining the changing nature of PMM from an organisational control perspective and also by presenting a framework to inform future studies investigating the impact of new business trends on PMM. The paper also reveals practical insights for improving performance measurement systems and performance management practices in organisations.

Keywords: Performance measurement; Performance management; Business trends; Organisational control theory (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527320302954
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:232:y:2021:i:c:s0925527320302954

DOI: 10.1016/j.ijpe.2020.107942

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().