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More is none? Exploring how SMEs describe their best practices in performance measurement

Steven Tam (Department of Management, Fort Hays State University, Hays, Kansas, USA)

Strategic HR Review

ISSN: 1475-4398

Article publication date: 10 February 2021

Issue publication date: 9 November 2021

136

Abstract

Purpose

This paper aims to provide owner/managers with access to an evidence-based study for the purpose of improving practice in performance measurement (PM) in their small and medium-sized enterprises (SMEs).

Design/methodology/approach

As a qualitative case study, it adopted semi-structured interviews to explore the best practices in PM from 32 SMEs in Malaysia. The interviewees were the owner/manager, the supervisor and/or the person who is responsible for human resources in the firm. Thematic analysis was conducted.

Findings

First, it should be no surprise, as the study echoes previous research, that the traditional, complex PM systems are not functionally suitable for most SMEs. Second, the study identifies five common capabilities (5Cs) in human capital that these SMEs require in their PM practice, all of which are claimed to contribute critically to SME success and sustainability.

Research limitations/implications

While qualitative studies can obtain in-depth results, it is encouraged to continue similar research with additional samples for comparison, including quantitative studies and SMEs in other countries.

Practical implications

The findings help SME owners/managers benchmark their current practices in PM and improve toward what peer firms have been doing well to benefit organizational development in a feasible tone.

Originality/value

This research informs SME practitioners of the 5Cs mechanism found to be effective for long-term organizational survival – including during unprecedented times such as an economic downturn or a pandemic.

Keywords

Acknowledgements

The author wishes to thank Editor Nicholas King and the anonymous reviewers. Support from those acquaintances and small businesses for the study is also appreciated.

Citation

Tam, S. (2021), "More is none? Exploring how SMEs describe their best practices in performance measurement", Strategic HR Review, Vol. 20 No. 5, pp. 173-178. https://doi.org/10.1108/SHR-07-2021-0030

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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