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Investigating the influence of performance measurement on learning, entrepreneurial orientation and performance in turbulent markets

Babak Taheri (Department of Business Management, Heriot Watt University, Edinburgh, UK)
Umit Bititci (Department of Business Management, Heriot Watt University, Edinburgh, UK)
Martin Joseph Gannon (Strathclyde Business School, University of Strathclyde, Glasgow, UK)
Renzo Cordina (School of Business, University of Dundee, Dundee, UK)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 8 February 2019

Issue publication date: 30 April 2019

Abstract

Purpose

This study aims to examine how comprehensive performance measurement systems (CPMS) influence entrepreneurial orientation, market-focussed learning (MFL) and employees’ perceptions of firm performance within a service-provision context. It also considers the moderating effect of low and high levels of perceived market-turbulence (low-turbulence environments [LMT] vs highly turbulent environments [HMT]) on the relationships between these concepts.

Design/methodology/approach

PLS-SEM was used to test the hypothesised relationships using survey responses from 198 employees of a leading multi-branch travel agency in Iran.

Findings

The findings demonstrate that CPMS positively influence MFL and, in doing so, have a positive effect on perceptions of firm performance. However, the findings also suggest that CPMS negatively influence entrepreneurial orientation, and therefore can also negatively influence perceptions of firm performance. Further, the relationships between CPMS, entrepreneurial orientation, MFL and firm performance are stronger for HMT when compared to LMT for all relationships.

Practical implications

Industry managers should adapt their CPMS to include measures specific to intra-organisational entrepreneurship and innovation and should pursue greater understanding of changing customer preferences.

Originality/value

This study highlights the importance of MFL as a means of avoiding the negative impact of underdeveloped market research on performance in the turbulent Iranian context. Contrary to previous literature, it provides an example of how CPMS can negatively influence entrepreneurial orientation in such environments.

Keywords

Citation

Taheri, B., Bititci, U., Gannon, M.J. and Cordina, R. (2019), "Investigating the influence of performance measurement on learning, entrepreneurial orientation and performance in turbulent markets", International Journal of Contemporary Hospitality Management, Vol. 31 No. 3, pp. 1224-1246. https://doi.org/10.1108/IJCHM-11-2017-0744

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited