Performance Management for Growth: A Framework Based on EVA

Mihaela Tudose (), Valentina Rusu and Silvia Avasilcai
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Silvia Avasilcai: Engineering and Management Department, Faculty of Industrial Design and Business Management, Gheorghe Asachi Technical University of Iasi, Bulevardul Profesor Dimitrie Mangeron 29, 700050 Iasi, Romania

JRFM, 2021, vol. 14, issue 3, 1-19

Abstract: Some of the constructs in the field of performance management are intuitive or not empirically validated. This study provides a data-driven framework for measuring and improving the performance through synchronized strategies. The ultimate goal was to provide support for increasing business performance. Empirical research materializes in an exploratory case study and a statistical analysis with econometric models. The case study revealed that a company can improve its performance, even in periods of growth, being characterized by consistent investments. The statistical analysis, performed on a restricted sample of companies, confirmed the results that were provided by the case study. The measurement of performance was made by capitalizing on financial and non-financial data precisely to intensify the interest for corporate sustainability. The obtained results, contrary to previous research that showed that economic value added (EVA) is negatively influenced by the increase in invested capital, open up new research perspectives to find out whether, at the industry level, performance appraisal that is based on EVA stimulates the development of a business’s economic capital. The research has a double utility: scientific (by providing an overview of the state of the art in the field of performance management) and practical (by providing a reference model for measuring and monitoring performance).

Keywords: performance; measurement of performance; EVA; strategies; business success (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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