Measuring the success of a performance measurement system in Thai firms

Nopadol Rompho and Sakun Boon‐itt

International Journal of Productivity and Performance Management, 2012, vol. 61, issue 5, 548-562

Abstract: Purpose - This study aims to identify what managers involved in the design of a performance measurement system (PMS) perceive are the attributes of a successful PMS. Design/methodology/approach - A total of 85 managers from Thai firms were interviewed to develop the proposed model to measure the success of a PMS. Results from 269 returned questionnaires from Thai managers were analysed by second order confirmatory factor analysis (CFA). Findings - Based on the study's findings, success of PMS was categorised into two aspects: design success and implementation success. Using CFA the empirical data demonstrate a good fit with the proposed measurement model. Research limitations/implications - The results of this study are based on the opinions of managers and therefore their accuracy is open to question. Adding non‐managerial perspectives might demonstrate another picture. Practical implications - The findings could well be useful for managers in any organisation. They can assist the manager in judging whether or not the company's PMS is successful according to the discovered criteria. Use of these criteria could lead to better decision‐making in the design and implementation of a PMS framework in any organisation. Originality/value - This study enhances the body of knowledge by defining what a successful PMS means to managers in Thai firms. The results of this study can be applied to any country, but perceptions of what is important could vary from country to country.

Keywords: Performance measurement system; Measurement model; Confirmatory factor analysis; Performance measurement (quality); Performance measures; Thailand (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:v:61:y:2012:i:5:p:548-562

DOI: 10.1108/17410401211232966

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