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Operational performance measures for startups

Nopadol Rompho (Thammasat Business School and Center of Excellence in Operations and Information Management, Thammasat University, Bangkok, Thailand)

Measuring Business Excellence

ISSN: 1368-3047

Article publication date: 19 March 2018

Abstract

Purpose

The purpose of this study is to investigate the uses of performance measures in startup firms, including perceived importance and performance of those measures.

Design/methodology/approach

The survey method is used in this study. Data are collected from founders/chief executive officers/managers of 110 startups in Thailand. The correlation analysis and analysis of variance techniques are used as the analysis tool in this study.

Findings

The results show that there is a positive relationship between the perceived importance and the performance of each metric. However, no significant differences are found in the importance and performance of each metric among the various stages of startups.

Research limitations/implications

Because there are so few startups compared to large corporations, the sample size of this study is relatively small, which is a limitation for some statistical tests.

Practical implications

Startup should measure and monitor the correct metrics in a particular stage, instead of trying to perform well in all areas, which will lead them to lose focus, and possibly even fail. Results obtained from this study will aid startups in properly monitoring and managing their performance.

Originality/value

Unlike large corporations, the performance measures used by startups vary, and depend on a startup’s stage and type. Because of the fact that there are much fewer startups than large corporations, there are a limited number of studies in this area. This research is among the first studies that try to investigate the uses of performance measure for this new type of organizations.

Keywords

Acknowledgements

This research was financially supported by Thammasat Business School, Thammasat University.

Citation

Rompho, N. (2018), "Operational performance measures for startups", Measuring Business Excellence, Vol. 22 No. 1, pp. 31-41. https://doi.org/10.1108/MBE-06-2017-0028

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited