Examining the Impact of Performance Measurement Systems (PMSs) on the Performance of the Jordanian Industrial Estates’ Companies

Lubna Q. Owais () and Judit T. Kiss
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Lubna Q. Owais: Department of Engineering Management and Enterprise, Faculty of Engineering, University of Debrecen, 4032 Debrecen, Hungary
Judit T. Kiss: Department of Engineering Management and Enterprise, Faculty of Engineering, University of Debrecen, 4032 Debrecen, Hungary

Administrative Sciences, 2025, vol. 15, issue 9, 1-21

Abstract: With growing competition in today’s business environments, organizations rely on Performance Measurement Systems (PMSs) to address challenges, assess progress, and enhance performance. While PMSs have been extensively researched, their impact on organizational performance remains a topic of debate, particularly in developing countries like Jordan, where relevant research is scarce. This study investigates the effects of Comprehensive PMSs (CPMSs) on organizational effectiveness and the financial and non-financial performance of the companies in the Jordanian Industrial Estates. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), this study analyzes empirical data to test proposed hypotheses regarding the impacts of these systems on organizations’ performance. The findings confirm that CPMSs significantly and positively influence overall organizational performance, organizational effectiveness, and both financial and non-financial performance. These results highlight the critical role of CPMSs in improving organizational outcomes, supporting their adoption for strategic decision-making. However, given the limited research on PMSs in developing economies, further studies are needed to explore contextual influences and long-term implications.

Keywords: performance measurement systems; performance management; financial performance; non-financial performance; organizational effectiveness; Jordan (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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