Concept of Inclusive Optimal Performance (IOP): Theoretical and Conceptual understanding on the inclusive relationship between Internal Simultaneous Performance (ISP) and External Simultaneous Performance (ESP)Download
Volume 16 Issue 1 2020
Bazla Ali Khan
|Abstract||Small and Medium Enterprises play a significant role in economic well-being of a society, but unfortunately there is lack of proper structure and system for application of performance measurement in most of the SMEs. Hence, an inconsistency amongst the performance measures can be observed. The following paper focuses upon distinctive nature of small and medium business organizations (SMEs) and proposes a framework for effective performance measurement with respect to (SMEs). This research aims to provide such a framework for performance measurement that can ensure a balance between internal and external performance measures by introducing the concept of inclusive optimal performance (IOP) as a resultant of inclusive working between internal simultaneous performance (ISP) and external simultaneous performance (ESP). The need for inclusive strategic approach to internal and external performance factors has arrived primarily because of one sided competitiveness is produced due to exclusive strategic approach to inclusive and external performance factors of organization. In order to explore the legitimacy of the depicted argument the following research is based on concept review methodology of literature review through which this research assess the extensive literature with respect to performance measurement systems within SMEs. Through the integration of the psychology-oriented constructs of the internal and external locus of control theory, this research stem the inclusive nature and working of internal and external factors of performance analogy as a basis of the proposed framework that can be applied to ensure effective performance measurement at SMEs.|
|Keywords||Performance Measurement, Management Systems, SMEs, Performance Measurement Framework|
|Type||Research paper, manuscript, article|
|Recognized by||Higher Education Commission of Pakistan, HEC||Category||"Y"||Journal Name||IBT Journal of Business Studies||Publisher Name||ILMA University||Jel Classification||P17, P27, P47, D21, D22||DOI||http://dx.doi.org/10.46745/ilma.jbs.2020.16.01.08||ISSN no (E, Electronic)||2409-6520||ISSN no (P, Print)||2416-8393||Country||Pakistan||City||Karachi||Institution Type||University||Journal Type||Open Access||Type of Review||Double Blind Peer Reviewed||Format||Paper Link||http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/16.1/8.pdf||Page||101-124||References|| Abbasian-Naghneh, S., Samiei, M., Felahat, M., & Mahdavi, M. (2014). A New Integrative Approach Based on Balanced Scorecard, Data Envelopment Analysis, and Management Performance to Prioritize Research and Development Projects. In In Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis (pp. 324- 348). IGI Global.
Bacon, C. R. (2008). Practical portfolio performance measurement and attribution. John Wiley & Sons.
Barringer, B. R., & Harrison, J. S. (2000). Walking a Tightrope: Creating Value Through Interorganizational Relationships. Jounal of Management, 26(3), 367- 403.
Bontis, N., Dragonetti, N. C., Jacobsen, K., & Roos, G. (1999). The knowledge toolbox:: A review of the tools available to measure and manage intangible resources. European management journal, 17(4), 391-402.
Brooking, A. (1996). Intellectual capital: Core Asset for the Third Millennium Enterprise,. Management Journal, 17(4).
Can˜ibano, L., Garcı´a-Ayuso, C.M., & Sa´nchez, P. (2000). The value relevance and managerial implications of intangibles: A literature review. . Classification of intangibles,, 712, 79-126.
Carter, J., & Goldstein, D. (2014). Sympathoneural and Adrenomedullary Responses to Mental Stress. Comprehensive Physiology.
Cavaco, N. M., & Machado, V. C. (2014). Sustainable competitiveness based on resilience and innovation – an alternative approach. International Journal of Management Science and Engineering Management.
Chenhall, R. H. (2003). Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, organizations and society, 28(2), 127-168.
Chenhall, R. H. (2005). Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study. Accounting, organizations and society, 30(5), 395–422.
Chennell, A., Dransfield, S., Field, J., Fisher, N., Saunders, I., & Shaw, D. (2000). OPM: a system for organisational performance measurement. . In Proceedings of the performance measurement–past, present and future conference, Cambridge , (pp. 19-21).
Cross, K. F., & Lynch, R. L. (1999). Measure Up!: Yardsticks for Continuous Improvement. Blackwell publishing.
Darell, S. (2016). The KPI Examples Review. Retrieved from List of Top 20 Financial KPI: Examples of the Most Popular Key Performance Indicators Defined by Categories: http://kpi-examples.blogspot.com/2016/01/list-of- top-20-financial-kpi-examples-of-key-performance-indicators-defined-by- categories.html.
Diamond, P. (1996). Testing the internal consistency of contingent valuation surveys. Journal of Environmental Economics and Management, 30(3), 337- 347.
Dostilio, L., Brackmann, S., Edwards, K., Harrison, B., Kliewer, B., & Clayton, P. (2012). Reciprocity: Saying what we mean and meaning what we say. Michigan Journal of Community Service Learning.
Dutton, J. M., & Freedman, R. D. (1985). External environment and internal strategies: calculating, experimenting, and imitating in organizations. Advances in strategic management, 3(5), 39-67
Elenkov, D. S. (1997). Strategic uncertainty and environmental scanning: The case for institutional influences on scanning behavior. . Strategic management journal, 18(4), 287-302.
Elnicki, R. (1971). The genesis of management accounting. Management Accounitng, Vol. 52, 52(10), 15-17.
Evans, W. R., & Davis, W. D. (2005). High-Performance Work Systems and Organizational Performance: The Mediating Role of Internal Social Structure. Journal of Management, 31(5), 758–775.
Fernández, R. S., & Bonillo, M. I. (2006). Consumer perception of value: Literature review and a new conceptual framework. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior.
Ferreira, A., & Otley, D. (2009, December). The design and use of performance management systems: An extended framework for analysis. Management Accounting Research, 20(4), 263-282. doi:https://doi.org/10.1016/j. mar.2009.07.003.
Freeman, E. R. (1983). Strategic management: A stakeholder approach. Advances in strategic management, 1(1), 31-60.
Galar, D., Parida, A., Kumar, U., Baglee, D., & Morant, A. (2012). The measurement of maintenance function efficiency through financial KPIs. Journal of Physics: Conference Series, 364(1).
Garengo, P., Biazzo, S., & Bititci, U. S. (2005). Performance measurement systems in SMEs: A review for a research agenda. International Journal of management Reviews, 7(1), 25-47.
Gebhardt, G. F., Carpenter, G. S., & Sherry Jr, J. F. (2006). Creating a market orientation: A longitudinal, multifirm, grounded analysis of cultural transformation. Journal of marketing volume , 70(4), 37-55.
Gray, B., Matear, S., Boshoff, C., & Matheson, P. (1998). Developing a better measure. European Journal of Marketing, 32(9), 884-903.
Greenley, G. E. (1995). Market orientation and company performance: empirical evidence from UK companies. British journal of management, 6(1), 1-13.
Greenley, G., & Foxall, G. (1997). Multiple stakeholder orientation in UK companies and the implications for company performance. Journal of Management Studies, 34(2), 259-284.
Gregory P. White. (1996). A survey and taxonomy of strategy-related performance measures for manufacturing. International Journal of Operations & Production Management, 16(3), 42 - 61.
Gulbro, R. S. (2000). Are small manufacturers failing the quality test? Industrial Management & Data Systems, 100(3), 76–80.
Guthrie, J. (2001). The management, measurement and reporting of intellectual capital. Journal of Intellectual Capital, 2(1), 27-41.
Hall, R. (1989). The management of intellectual assets: a new corporate perspective. Journal of general management, 15(1), 53-68.
Hambrick, D. C. (1982). Environmental scanning and organizational strategy. Strategic Management Journal, 3, 159–174.
Hansen, O. E., Sonderga˚rd, B., & Meredith, S. (2002). Environmental innovations in small and medium sized enterprises. Technology Analysis & Strategic Management, 14, 37-56.
Harper, E., Castrucci, B. C., Bharthapudi, K., & Sellers. (2015). Job Satisfaction: A Critical, Understudied Facet of Workforce Development in Public Health. Journal of Public Health Management and Practice, 21.
Houwer, J. D. (2020). Revisiting classical conditioning as a model for anxiety disorders: A conceptual analysis and brief review. Behaviour Research and Therapy.
Hudson, M., Bennett, J. P., Smart,A., & Bourne, M. (1999). Performance measurement for planning and control in SMEs. Global Production Management, IFIP TC5/ WG5.7 International Conference on Advances in Production Management Systems, , (pp. 219–225). Berlin.
Itami, H., & Roehl, T. W. (1991). Mobilizing invisible assets. Harvard University Press.
Jaworski, B. J., & Ajay, K. K. (1993). Market orientation: antecedents and consequences. Journal of marketing, 57(3), 53-70.
Jelinek, M. (1979). Institutionalizing innovation, a study of organizational learning systems. Greenwood.
Keegan, D., Eiler, R., & Jones, C. (1989). Are your performance measures obsolete? Management, 70, 45–50.
Kennerley, M., & Neely, A. (2000). A framework of the factors affecting the evolution of performance measurement systems. International Journal of Operations & Production Management, 22(11), 1222-1245.
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of marketing, 54(2), 1-18.
Krause, M. P. (2002). Strategic consensus in the internal supply chain: Exploring the manufacturing-purchasing link. International Journal of Production Research, 40(13), 3075-3092.
Kueng, P. (2000). Process performance measurement system: a tool to support process-based organisations. Total Quality Management, 11(1), 67–85.
Kureshi, N. I., Mann, R., Khan, M. R., & Qureshi, M. F. (2009). Quality Management Practices of SME in Developing Countries. Journal of Quality and Technology Management, 5(2), 63-89.
Laitinen, E. K. (2002). A dynamic performance measurement system: evidence from small Finnish technology companies. Scandinavian journal of management, 18(1), 65-69.
Lev, B. (2001). Intangibles: Management, Measurement, and Reporting. Washington DC, USA: Brookings Institution Press.
Lukviarman, N. (2008). Performance measurement: A stakeholder approach. Sinergi: Kajian Bisnis dan Manajemen,, 10(2).
Lynch, R. L., & Kelvin F. Cross. (1995). Measure Up!: Yardsticks for Continuous Improvement. Cambridge: Wiley.
Marr, B., Gray, D., & Neely, A. (2003). Why do firms measure their intellectual capital. Journal of Intellectual Capital, 4(4), 441-464.
Maskell, B. (1991). Performance Measurement for World Class Manufacturing: A Model for American Companies. CRC press.
Meyer, J., Becker, T., & Vandenberghe, C. (2004). Employee Commitment and Motivation: A Conceptual Analysis and Integrative Model. Journal of Applied Psychology.
Meyer, M., & Gupta, V. (1994). ‘The Performance Paradox. Research in Organizational Behavior, 16, 309-369.
Morgan, N.A., Clark, B. H., & Goonera, R. (2002). Marketing productivity, marketing audits,and systems for marketing performance assessment: integrating multiple perspectives. . Journal of business research, 55(5), 363-375.
Morris , M., & Sexton , D. (1996). The Concept of Entrepreneurial Intensity: Implications for Company Performance. Journal of Business Research, 5-13.
Mouritsen, J., Bukh, P. N., Larsen, H. T., Hansen, G., Stakemann, B., Jeppesen, G., & Nielsen, L. H. (2000). A guideline for intellectual capital statements-a key to knowledge management. Ministry of Trade and Industry, Danish Agency for Trade and Industry.
Murschetz, P. (2005). Interactivity and leadership effectiveness: A concept review and analysis of email as an interactive leadership tool. Leadership in the media industry–Changing contexts, emerging challenges.
Narver, J. C., & Stanley, S. F. (1990). The effect of a market orientation on business profitability. Journal of marketing, 54(4), 20-35.
Neely, A. (1994). Performance measurement system design–third phase. In Performance Measurement System Design Workbook 1.
Neely, A. D., & Mills, J. F. (1993). Manufacturing in the UK – report on a survey of performance measurement and strategy issues in UK manufacturing companies. London: Manufacturing Engineering Group.
Neely, A., Gregory, M., & Platts, K. (2005). Performance measurement system design: A literature review and research agenda. . International Journal of Operations & Production Management, 25(12), 1228-1263.
Negro, R. W. (2015). Dry powder inhalers and the right things to remember: a concept review. Dal Negro Multidisciplinary Respiratory Medicine.
Ostroff, C. (1992). The relationship between satisfaction, attitudes, and performance: An organizational level analysis. Journal of applied psychology, 77(6), 963.
Pearce, J. A. (1983). The relationship of internal versus external orientations to financial measures of strategic performance. Srraregic Management Journal, 4, 297-306.
Roos, J., Edvinsson, L., & Dragonetti, N. C. (1997). Intellectual capital: Navigating the new business landscape. Springer.
Rotter, J. B. (1954). Social learning and clinical psychology. Johnson Reprint Corporation.
Rotter, J. B. (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs: General and Applied, 80, 1–28.
Shek, D., Yu, L., & Busiol , D. (2015). Preventing and Combating Internet Addiction: A Concept Review. Student Well-Being in Chinese Adolescents in Hong Kong.
Shi, Q., Li, F., Hu, Q., & Wang, Z. (2018). Dynamic demand control for system frequency regulation: Concept review, algorithm comparison, and future vision. Electric Power Systems Research.
Shrivastava, A., Boylan, J., Bureau, Y., De Sousa, A., & Shah, N. (2015). Biological Trajectory for Psychosocial Risk Factors in Psychiatric Disorders—A Concept Based Review. Open Journal of Psychiatry.
Simons, R. (1994). Levers of control: How managers use innovative control systems to drive strategic renewal. Harvard Business Press.
Skinner, W. (1969). Manufacturing – missing link in corporate strategy. Harvard Business Review, 47(3), 136-145.
Slater, S. F., & Narver, J. C. (1994). Does competitive environment moderate the market orientation-performance relationship? Journal of marketing, 58(1), 46- 55.
SMEDA. (2017). SME Policy development. Retrieved from http://www.smeda. org/index.php?option=com_content&view=article&id=58:smepolicy- development&catid=2&Itemid=101.
Spillane, J., Halverson, R., & Diamond, J. (2004). Towards a theory of leadership practice: a distributed perspective. Journal of Curriculum Studies.
Sveiby, K. E. (1997). The new organizational wealth: Managing & measuring knowledge-based assets. Berrett-Koehler Publishers.
Tamayo, J., Romero, J., Gamero, J., & Román, J. M. (2015). Do Innovation and Cooperation Influence SMEs’ Competitiveness? Evidence From the Andalusian Metal-Mechanic Sector. Innovar, http://dx.doi.org/10.15446/ innovar.v25n55.47226.
Venkatraman, N., & Camillus, J. (1984). Exploring the concept of fit in strategic management. Academy of Management Review, 9, 513-525.
Verhoef, P. c., & Peter, S. L. (2009). Understanding the marketing department’s influence within the firm. Journal of marketing, 73(2), 14-37.
Vickery, S. D., & Markland. (1993). Production competence and business. Decision Sciences Vol 24, 435-55.
Vickery, S. K. (1991). A theory of production competence revisited. Decision sciences, 22(3), 635-643.
Vinten, G. (2001). Shareholder versus stakeholder–is there a governance dilemma? Corporate Governance: An International Review, 9(1), 36-47.
Wang, G. J., Volkow, N., Thanos, P., & Fowler, J. (2004). Similarity between obesity and drug addiction as assessed by neurofunctional imaging: a concept review. Journal of addictive diseases.
Yew Wong, K. (2005). Critical success factors for implementing knowledge management in small and medium enterprises. Industrial management & Data systems, 105(3), 261-279.