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Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Management Accounting (MA) practice is one strand in the complex weave that makes up the social fabric. Social patterns of interaction and societal presuppositions that impel people to act in certain ways are all factors that potentially impinge on the role and nature of MA. Some researchers recognise that normative pressures, as they are associated with social obligations and appropriate social conduct in human behaviours, are significant as far as MA practices are concerned. Thus, MA practices should be understood along with the effects of organisational, vis‐à‐vis management’s, strategic orientation (as a part of normative pressures) in organisations. This empirical study investigates the effect of organisational strategic orientation on performance, especially Non‐financial Performance (NFP) measurement in different types and kinds of financial institutions in Finland, Sweden and Japan. The study reveals that organisational strategic orientation highly influences NFP measurement in financial institutions, though the effects of this factor are different in different financial institutions. After providing the empirical result, some research directions are given for further research.

This paper aims to examine how modern small-medium enterprises (SMEs) operating in the tourism industry perceive and define corporate performance, and how they measure and monitor businesses’ achievements. Actual performance measurement activities are expected to show how (and if) companies manage the key factors that drive value creation and value erosion processes. Are effective performance measurement activities aligned with main theoretical prescriptions?

Theory and previous empirical research on SMEs’ performance is instrumentally used to identify those key factors that are supposed to drive small/medium hotels’ business performance; building on a resource-based view (RBV) framework, which provides the theoretical perspective to link resources, capabilities and actions to firm performance, a model based on the financial, the operational and the organisational dimension of firm’s success is developed through the selection of a set of consistent financial and non-financial indicators. The balanced performance measurement model is then tested via a field research study based on a semi-structured questionnaire sent to 540 selected SMEs active in the tourism sector.

The results suggest that small-medium Italian hotels, typically family firms managed by owners, tend to adopt a balanced system of performance measurement that keeps track of the financial and non-financial dimensions of hotel’s performance; customer orientation proves to be an extremely important leading indicator of non-financial corporate performance. Amongst traditional financial indicators, net profits, profitability ratios such as return on investment and return on sales, revenues for available room, occupancy rate and some cost efficiency ratios are found to be relevant, whereas extensive use is made of non-financial metrics such as customer satisfaction, number of complaints, number of new and repeat customers, employee competencies and staff abilities. Furthermore, some interesting results about frequency of measurement and purpose of measurement are also presented.

Data used in this study do not allow for a comprehensive analysis of the correlation between hotel performance and a specific measurement model implemented. Further future research that is meant to be developed will focus on the issue of addressing the nexus between firm performance and resource and capability used as strategic factors and monitored with an effective performance measurement system. The sample can also be expanded to carry out comparative analysis.

The results shed some further light on performance measurement activities actually implemented by Italian hotels. The evidence gives a contribution to understanding the relationship between critical resources and capabilities that need to be developed and effectively managed to reach superior business performance. Furthermore, the study highlights the need to design and implement a customised performance measurement model, which accounts for firm-specific resources and capabilities and sector-specific features for the hotel to properly manage those strategical success factors that can deliver sustained competitive advantage to the firm.

This research paper contributes to performance measurement literature, by suggesting that the development and the implementation of a simplified but structured and complete performance measurement system, designed on the specific needs and features of SMEs, seems to be a sensible way to improve resources and capabilities utilisation and to obtain a holistic understanding of the achievements of these organisations.

This study provides a systematic review on performance measurement of supply chains from a financial perspective.

This study systematically reviews the financial performance measures of supply chains. More specifically, this research reviews a total of 100 papers published in more than 50 peer-reviewed journals. The reviewed papers are categorized into three major areas of engineering, business and management. Additionally, the papers are investigated based on country, journal frequency, applied methods, publication date and research type (application or developmental).

According to the obtained results, cost, return on assets (ROA), sales, asset turnover, return on investment (ROI), market share, inventory turnover, profit margin, revenue growth, economic value added (EVA) and cash-to-cash cycle are the most common metrics of financial performance measurement. Next, a framework is developed based on different categories of performance measurement and decision levels of the supply chain. Finally, some research directions are suggested to be further investigated by other scholars.

Although available studies on supply chain performance measurement are very vast and comprehensive, the majority of the studies have neglected to highlight the importance of financial measures. In other words, with the advent of nonfinancial measures, however, the majority of supply chain managers still prefer to consider financial issues in their performance assessment process.

The purpose of this paper is to examine the association between strategy, structure and environmental uncertainty, and the design and the use of performance measurements systems. The paper provides empirical evidence on the contextual factors associated with the use of financial and non‐financial measures, process and outcome measures and the deployment of innovative performance measurement systems in manufacturing business units.

A questionnaire was sent to a random sample of 200 Canadian manufacturing organizations. Respondents were asked to indicate to which extent they use different measures. They also had to mention if they had adopted an innovative performance measurement approach such as the balanced scorecard. The questionnaire also included questions to classify organizations as prospectors, defenders or analyzers and to measure the levels of decentralization and perceived environmental uncertainty.

The results show that there is a significant association between strategy, organizational structure and environmental uncertainty and the use of non‐financial and process measures. They also indicate that there is an association between strategy and environmental uncertainty and the deployment of innovative performance measurement systems.

Since the 1990s, performance measurement has become an important issue for both academics and practitioners. The professional literature has suggested that managers should design innovative performance measurement systems such as balanced scorecards that include financial and non‐financial measures and also process and outcome measures. This paper provides a better understanding of the factors that affect the implementation of innovative performance measurement systems.

The paper presents one of the few studies that provide a better understanding of the contingent factors that influence the design and the use of innovative performance measurement systems.

There is a a great deal of literature on performance measurement and accountability in government. Governments around the world have invested large amounts to develop performance measurement systems, the results of which are mediocre at best. There is also a growing recognition that financial performance measures alone measure only limited aspects of an organisation’s performance. To improve performance measurement systems and accountability to different stakeholders, non‐financial indicators have been developed for the for‐profit sector. Prior research in the local government sector in the state of Victoria, Australia, showed low levels of accountability and very little performance measurement taking place. However, significant changes have been imposed on the sector, enhancing local and central accountability, making it more business‐like, and focussing on the need to measure performance. This research studied the extent to which performance measurement systems are currently being used in practice in Victorian local government, the factors which lead to the use of performance measurement and the extent of non‐financial indicators. The results revealed a substantial increase in the level of use of performance measurement in the sector, related to increased emphasis on accountability and organisational changes imposed on the sector by the state government. The performance of both people and programs is now being measured. Although there is an emphasis on financial and budgetary measures for financial accountability, the use of non‐financial measures in determining outcome accountability is increasing. Customer service and quality are two of the areas in which non‐financial performance measures are being developed.

This his paper focuses on a specific aspect of Value‐Based Management (VBM), the design of performance measurement systems. This remains an important challenge not only in Management Accounting but also in Human Resources Management. Performance measurement on various levels of organisation should be aligned to value creation, and management compensation should be tied to the achievement of targets set to these measures according to VBM proponents. In the present article definitions of concepts and issues associated with the design of performance measurement systems are discussed. Furthermore, the paper presents a review of four tools available to measure and manage intangible resources: human resource accounting, economic value‐added (EVA), balanced scorecard (BSC) and intellectual capital (IC). The role of non‐financial measures is also analysed from a VBM framework. Finally, some concluding remarks are highlighted in the last section.

The purpose of this paper is to examine the mediating role performance measurement plays in the relationship between competitive strategies and firm performance.

This study conducted a mail‐survey of Thai listed companies in 2009. A total of 101 Thai listed companies’ executives, each representing their company, participated in this study. The SPSS version 11.5, path‐analytical model is adopted to analyze the survey data obtained.

This study finds that generally, all competitive strategies positively and significantly enhance firm performance through performance measurement. Specifically, firms’ differentiation strategy not only has a direct and significant impact on firm performance but also it has indirect and significant impact on firm performance through financial measures. Cost leadership strategy that firms pursue does not directly affect firm performance. However, it does so indirectly and significantly through financial performance measures.

Future research could consider the use of longitudinal data to ascertain more clearly these causal relationships.

The paper offers managerial implications that whether a firm chooses to pursue cost leadership or differentiation strategies, a strong emphasis on performance measurement will ensure the positive impact on firm performance in a fierce competitive environment.

This paper adds to the existing theoretical discussion and analyses the research and findings on the mediating role of performance measurement on the relationship between competitive strategy and firm performance.

The purpose of this study is to develop a financial performance measurement model for real estate business.

The study uses balanced scorecard (BSC) proposed by Kaplan and Norton (1996) as a theoretical support. The study, being exploratory in nature, uses survey method to collect data on several dimensions of BSC as well as on other performance measures used by real estate businesses in India. The survey data collected is analyzed using exploratory factor analysis (EFA) to explore the model constructs. This is followed by building an integrated conceptual model for measuring the financial performance of a real estate business. The model is tested using partial least squares structural equation modeling (PLS-SEM).

The study finds that the financial performance of the real estate business revolves around customer satisfaction, employee satisfaction and external networks. The right alignment of these components lead to superior financial performance. It also provides a competitive advantage to the real estate business. These three components (customer satisfaction, employee satisfaction and external networks) have direct and indirect influences on the financial performance of real estate business.

A small sample size (78 respondents), as well as the respondent’s geographical concentration in India, are the limitations of the study. Hence, generalization of findings may be difficult until the findings are validated across the globe.

The conceptual performance measurement model suggested in this research provides an effective tool to plan and strategize to achieve superior financial performance, particularly for stakeholders in the real estate business.

To the best of the authors’ knowledge and belief, this is the first attempt to develop a comprehensive financial performance measurement model for real estate business and test it using EFA and PLS-SEM.