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Business performance management describes the processes, methodologies, metrics and systems needed to measure and manage the performance of an enterprise. Traditional performance management systems were based on financial and productivity measures but the alternate measures proposed in last more 25 years have strategic focus and incorporate variety of performance measures such as efficiency, effectiveness, productivity, quality, customer satisfaction, innovation and employee satisfaction in addition to financial. Globalization and modernization have created a business environment uncertain with associated risks which has necessitated the incorporation of various types of flexibilities such as strategic, technical, operational, information system (IS), etc. Critical success factors and implementation issues also need to be incorporated to succeed. The purpose of this paper is to present the strategic performance management system (SPMS) designed, incorporating flexibility and implementation issues, and its effectiveness empirically validated from Indian oil industry.

Based on literature review and gaps identified, a proposed model of enterprise performance management system incorporating flexibility, critical success factors and implementation issues was developed. Macro- and micro-level factors impacting the effectiveness of the model were identified, and hypotheses were developed and tested empirically from the survey study of Indian oil industry.

The finding met, by and large, most of the research objectives. In total, 7 macro- and 11 micro-level factors came out from the study. The strategy planning, strategy implementation, strategic flexibility (SF), SPMS design, information system flexibility (IF) flexibility, implementation issues and critical success factors, and performance feedback and learning are the macro-level factors impacting the SPMS effectiveness in measuring and managing performance of an enterprise. The SPMS implementation issues have proved to be major driver of effectiveness.

The research like many such researches had limited resources, data availability and bias of respondents. However, the model was statistically validated for its reliability and hypothesis testing. The research has added to literature on SPMS as integrated model incorporated SF, information flexibility and critical success factors. However, the effect of other types of flexibilities such as organizational, operational, HR, marketing, etc., and other stakeholders should also be studied in future research to broaden the findings.

The validated SPMS has practical implications for academics and researchers. Strategic and IF, and critical success factors have been incorporated in the integrated model to take care of business uncertainties so that it is strategically aligned and facilitate in effective SPMS use and implementation.

Though it has no direct social implication but, if adopted for social projects and not-for-profit organizations, it will have social benefits of efficient and effectiveness delivery of social projects and initiatives.

This is an original work carried out by the authors. The validated model along with interpretation is presented.

We examine the effectiveness of strategic performance measurement system (SPMS) in creating and steering a tension characterized by the two competing values of transformation and consistency.

We identify problems with a dynamic tension and propose an alternative approach to deepen understanding of tension management. The data were collected from 312 strategic business units of Japanese firms listed in the first and second sections of the Tokyo Stock Exchange.

We obtained the following results through a cluster analysis, a multiple comparison test, a multiple regression analysis containing interactions, and a post hoc analysis. First, we found that SPMS is positively associated with the creation of tension. Second, while the organizations facing tension averagely show higher performance than the others, the group shows larger variance in the performance. Third, SPMS contributes to the steering of the tension to some extent; however, the effect is not strong enough to attain the highest performance.

The findings have some implications for management accounting literature in the following ways; by providing a new perspective for deepening a consideration of the steering of the tension, emphasizing that the organizations facing tension give us an interesting research opportunity, and suggesting a need to search a composed mechanism (including SPMS) to steer the tension effectively.

We define and operationalize the tension with the competing values so that we can clearly recognize the effects of SPMS on the creation and steering of the tension.

Although prior researchers have consistently established a significant relationship between different strategic stances and organizational performances across different research contexts, the mechanisms underlying this link remain unclear. This study attempts to fill this gap in the literature by testing the mediating effect of the use of strategic performance measurement systems (SPMS) on the relationship between strategic stances (prospector, defender, and reactor) and organizational performance in the public sector.

This research is based on data collected by surveying 224 managers at public organizations in the Turkish Republic of Northern Cyprus (TRNC) and conducts an analysis using structural equation modeling (SEM).

The study findings show that prospector strategy is positively associated with organizational performance through the use of SPMS. The reactor strategy was negatively related to organizational performance through the use of SPMS. The defender strategy shows mixed results in terms of its effect on the use of SPMS and organizational performance.

The results obtained here provide strong evidence of the vitality of the use of SPMS for efficiency and effectiveness as a mediator between prospector strategy and organizational performance. To extend this position, future researchers could incorporate other contingent variables, such as structural autonomy, or use experimental design methods during economic austerity in the aftermath of the coronavirus disease 2019 (COVID-19) global pandemic.

This study represents an attempt to address public administration literature' general calls for grounded research that spells out to practitioners how different strategic stances are likely to affect the use of SPMS to achieve organizational performance levels in the public sector. The present study extends the public administration literature by examining the unexplored linkage of the use of SPMS through which strategic stances influence organizational performance in major public sector organizations.

For over 20 years, management control literature has indicated the importance of supporting the strategy development and implementation process with strategic performance measurement systems (SPMS) and integrating traditional financial indicators with a set of multidimensional forward-looking measures focusing on the long term and linked to cause-effect relationships. Nevertheless, knowledge on the specific SPMS models used in practice and their effectiveness in supporting the managerial decision-making process is still fragmented and ambiguous. The purpose of this paper is to first analyse the SPMS models used in practice, also considering the role of strategy and firm size as drivers of adoption, thereafter analysing the capability of SPMS models to provide managers with measures that are consistent with their strategic information needs.

The research is based on a survey involving 88 Italian medium-large sized firms (or subsidiaries of multinational firms) operating on a global level.

The cluster analysis identifies two very different SPMS models used in practice. The first is the Short-term Financial Model, and as its name indicates, is based on short-term, internally focused and unconnected financial indicators. The second is the Multidimensional Additive Model, which integrates financial and non-financial measures but without a fully developed fit with the strategy. The research primarily indicates unsatisfied information needs in both clusters, presenting a significant challenge to the further development of existing SPMS models and in defining new theoretical SPMS frameworks.

The adoption of an incremental approach to SPMS, simply adding new operational and strategic non-financial measures without a real fit with the strategy does not increase the information effectiveness of the system.

The paper analyses the characteristics and use of SPMS models in practice from an exploratory perspective, defining and applying a model to evaluate the information effectiveness of SPMS.

This paper aims to examine the role of performance measurement in the Thai public sector. It seeks to explore the interactive use of strategic performance measurement systems (SPMS) and organizational learning as a means to achieve strategic alignment at the provincial level of government, inter‐organizational networks of public agencies.

Questionnaires were sent to all chief officials of the Office of Governors in Thailand. Path analysis was used to test the hypotheses.

The findings revealed significant relationships between interactive use of SPMS and organizational learning and between interactive use of SPMS and strategic alignment. The results also showed an indirect effect of interactive use of SPMS on strategic alignment through organizational learning.

This paper provides a considerable contribution about the use of performance measurement in inter‐organizational networks which is relatively limited in the public arena.

The purpose of this paper is to investigate how the importance of different components of strategic performance measurement systems (SPMS) and their deployment influence the use of performance information from the SPMS in making strategic decisions.

Data were collected through a survey of 143 managers of Canadian public organizations.

The findings indicate that two SPMS components, namely, the importance of non-financial performance measures and the use of operational efficiency measures, have significant positive associations with performance information use for strategy implementation and strategy assessment decisions. The extent to which SPMS models were used is found to be positively associated with performance information use for strategy implementation, but not for strategy assessment, decisions. Furthermore, the relationships between SPMS variables and strategic decision making are moderated by information systems/data limitations and management’s commitment to attaining strategic goals. Managerial skills acquired through training or experience with SPMS also contribute positively to such relationships.

The results are affected by limitations associated with the survey method used.

The findings could be useful for supporting public policy, strategic decision making, public service improvement, operational efficiency, and effectiveness.

The study contributes to public management and performance measurement literature by investigating multiple determinants of performance information use in a cross-section of Canadian public organizations.

This exploratory study aims at identifying the main characteristics of strategic performance measurement systems (SPMS) that influence SPMS outcomes, which, in turn, impact firm performance. Using data from 1,990 companies in a wide range of industries, we employed path analysis and stepwise regression to test the model. We found empirical support for the model, in that SPMS have a significant effect on human resource practices and business results. The degree of BSC adoption, the impact of SPMS on human resources, the purposes for which the SPMS were designed, and the use of nonfinancial performance measures were found to have the most effect on the impact of the SPMS on business results.

Considering the significant contribution of service sector of the whole contribution of the economics, this study aims to investigate the impact of strategic performance measurement sytstem (SPMS) on sustainability strategic outcomes in the industry through organizational learning and service strategic alignment.

Using a survey study, 158 usable data were analysed using SmartPLS.

The results show that service strategic alignment and organizational learning mediate the relationship between SPMS and performance for product differentiation companies. For cost leadership companies, the results indicate that there is no mediation of service strategic alignment and organizational learning on the relationship between SPMS and performance.

This study first provides evidence that SPMS improves performance through service strategic alignment and organizational learning for product differentiation companies in which innovation is crucial to thrive and succeed. Second, it introduces to the literature the characteristics of SPMS.

New insights of implementation of SPMS in improving companies’ performance in Indonesian financial institutions are provided.

Grounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.

The authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.

Results suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.

The authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

In the wake of the growing popularity of the open innovation approach, leveraging suppliers as external sources of innovation has attracted increasing interest from scholars and practitioners. Successful supplier involvement largely depends on an effective performance measurement process, but both supply chain management and innovation management literature have paid limited attention to this aspect. This paper aims to fill this gap by illustrating how companies measure the performance of the suppliers involved in their innovation projects and what role is played by the purchasing department.

This study interviews project stakeholders from nine different organizations acting as focal companies in the supply chains of various industries. This paper complements this on-field information with a vast amount of data collected from secondary project documents. Structured data coding and analysis allow us to discuss how companies redesign their performance measurement systems to ease the collaboration with suppliers in innovation and what factors underly these decisions.

The findings show that, in many cases, supplier performance measurement systems deviate from their typical characteristics to support collaboration in innovation projects. They integrate quantitative and qualitative measures, include contributions from different project stakeholders and are oriented toward high visibility and transparency with suppliers. A more substantial redesign of these systems is favored when purchasing is assigned to strategic project responsibilities and possesses higher absorptive capacity.

The results complement the knowledge for the supply chain management field, where supplier performance measurement systems have been discussed in the context of traditional buyer-supplier relationships, but not comprehensively in innovation projects and not considering the role of purchasing. Findings also contribute to the innovation management literature, which has mostly focused on what aspects need to be measured for innovation partners, rather than how to manage the performance measurement process in practice.