Implementation of Performance Management Systems in Small Medium and Micro Enterprises

Molefi Tshepo Molemi and Oliver Takawira

Journal of Accounting and Finance in Emerging Economies, 2024, vol. 10, issue 2, 97-112

Abstract: Purpose: Small Medium and Micro Enterprises (SMMEs) often struggle with performance measurement which can result in a high failure rate. This study aimed to examine the role of owner-managers in understanding performance management, the implementation processes of Performance Management System (PMS), and what challenges associated with applying PMS within SMMEs they faced. &SMMEs will greatly benefit from a reliable PMS that can streamline day-to-day operations and facilitate effective decision-making through Key Performance Indicators (KPIs).Design/Methodology/Approach: A qualitative approach was applied for the research methodology to understand the perspectives of owner-managers within SMMEs. The study employed a purposive, non-purposeful sampling technique to select twelve (12) participants. Semi-structured, face-to-face interviews were conducted with the participants’ consent to collect data.Findings: The collected data was subsequently analyzed using content analysis to scrutinize and interpret the findings. The research findings of this study found that owner-managers hold a general understanding of PMSs.Implications/Originality/Value: The implementation of PMSs in SMMEs presents a significant challenge, particularly in identifying pertinent KPIs.

Keywords: Performance management systems; Performance measurement system; Key performance indicators; Small Medium and Micro Enterprises; Motor retail industry (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:10:y:2024:i:2:p:97-112

DOI: 10.26710/jafee.v10i2.2869

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