International Journal of Business Performance Management (6 papers in press)

• A Framework to Support Performance Measurement at the Operative Level of an Organisation
  by Juhani Ukko, Sanna Pekkola, Hannu Rantanen 
  Abstract: The study focuses on performance measurement at the operative level of an organisation. Factors that improve and facilitate the performance of the operations and employees, and the use of performance measurement are examined. A framework to support performance measurement at the operative level of an organisation has been constructed. The empirical evidence of the study is based on interviews in eight organisations. The findings suggest that there are six factors that have a direct and positive influence on operative level performance measurement. The three most important factors are the linkage of performance measurement to reward, interactive communication, and understanding the linkage between an individual’s and the organisation’s targets.
  Keywords: Performance measurement; PM; performance measurement system; PMS; factor; operative level; operational; employees; management; organisation; framework; reward; communication; decision making
   
• Assessing the intangible sources of profitability in Japan
  by Pablo Ramirez, Toyohiko Hachiya 
  Abstract: In this study, we empirically test the association of intangibles assets and profits, competitive advantages and their sustainability predicted by RBV in a sample of public Japanese firms. Our approach is based on two main variables: firm’s profitability and firm-specific profits. Our findings suggest that profitability and competitive advantages are two different measures of firm performance and may not be driven by the same factors. This led us to infer that while a certain factor may help a firm achieve higher levels of profits, differences above industry benchmark may not help build up or secure a competitive advantage.
  Keywords: profitability; return on investments; competitive advantages; intangible assets; outperformers; Japan.
   
• The Effect of Competitive Strategy, Task Uncertainty, and Organization Structure on the Usefulness and Performance of Management Accounting System (MAS)
  by Dauw-Song Zhu, Shaio-Yan Huang, Cheng-Tsung Lu, Yen-Pin Lin 
  Abstract: Under the cyber-economy age, consumers tend to ask for more customized and personalized products which are totally different from the traditional batch production or assembly-line manufacturing. Many of American and European corporations implement management accounting system (MAS) in order to assist the execution of corporation strategy in the new environment. MAS is a management mechanism not only provides cost analysis and performance measurement, but also provides decision making. In addition, MAS also assists organizations facing financial crisis by providing timely information. As a result, the design and planning of MAS has been an important research issue valued by industrial and academic circles. However, MAS still suffers a lack of consistent opinions in the design and planning. The purpose of this study is to examine the effect of competitive strategy, organizational structure and task uncertainty on the usefulness of MAS information and MAS performance by taking the viewpoints of the responsibility center. The research sample includes 138 production departments in Taiwan. The major findings of this study are: (1) there is a significant relation between competitive strategy and the usefulness of MAS information; Besides, there is also a significant positive relationship between the usefulness of MAS information and MAS performance; (2) when manufacturing departments adopt differentiation strategy, they face higher task uncertainty that would takes shape of decentralization organization structure; Moreover, there is a positive relationship between decentralization and the usefulness of MAS information.
  Keywords: management accounting system (MAS); competitive strategy; organization structure; task uncertainty; the performance of MAS; the usefulness of MAS
   
• Improving business performance in multi-company projects through "cooperative power", presentation of a collaborative tool model.
  by Wenche Aarseth, Hans Christian (Tian) Sørhaug 
  Abstract: Increasing global competition drives most industries to search for competitive advantages and continuous process improvement. Through a three-year research project we found that the competitive advantage of multi-company projects lies in the ability to make a shift from the competitiveness and performance of the autonomous firm to the competitiveness and performance of the value chain of firms. Nearly all important indicators and measurements of profit and efficiency were linked to the performance of the firm and the traditional business worldview strongly emphasizes competitive power. There is little mention of the flip side of the coin, which is cooperative power. The purpose of this paper is to improve business performance in projects by understanding the concept “cooperative power” and what conditions influence projects organizational problems. As we found no literature on how to practically implement cooperative power, we developed a practical model which companies can use in projects in the future to improve performance. The empirical results are based on an extensive literature study, interviews, project presentations and focus group work in 14 companies.
  Keywords: Business strategy, strategic alliances, project management, stakeholder performance, stakeholder relationship, collaboration, partnerships.
   
• Destiny or decision: Competitive performance and its relationship to innovation
  by Sonja Radas, Marina Dabic, Vesna Andrijevic-Matovac 
  Abstract: In this paper we consider competitive performance of 73 leading Croatian companies along eight dimensions which were determined based on exploratory research (interviews with managers). We link present competitive performance with past innovation and future innovation plans. We argue that if the past innovations have given firm neither product nor process advantage over competitors, there may be no sufficient resources at present to fuel future innovation. Therefore low performers may lack strength and means to improve their position through future innovation, being stuck in a vicious cycle. In other words, for low performers their past innovation record can shape their destiny regardless of their decision to innovate. The results show that low performance is indeed related to the past innovation results. We find that bad innovators have bad competitive positions, which means less commercial success and less actual resources to be invested in the future innovations. We find those “strugglers” in every way as ambitious about their future innovation plans as good performers, but their limited resources prove to be drag on their goals. This paper illustrates that the destiny vs. decision dilemma can be very real for some firms.
  Keywords: competitive performance, innovation, strugglers, achievers,survey, Croatian companies
   
• A taxonomic approach to studying the performance of manufacturing SMEs
  by Louis Raymond, Josée St-Pierre, Marie Marchand 
  Abstract: In this paper, we propose a taxonomic approach to organisational performance, that is, a holistic, multidimensional and integrated approach for a deeper understanding of the performance management task faced by SME owner-managers. The first research objective is to identify performance configurations or gestalts that allow one to characterise manufacturing SMEs in a meaningful and eloquent manner with regard to their organisational performance. The second objective is to determine the extent to which these configurations are conditioned by the environmental and organisational context in which performance is managed. To answer these questions, the results of an empirical study of 205 Canadian manufacturing SMEs are presented. Three configurations are found, that is, global performers, gazelles, and mature performers. These configurations are characterized and contextualized, the key finding being that a holistic perspective on performance is particularly useful in apprehending the behaviour of SMEs.
  Keywords: organizational performance; SME; gestalt; configuration; taxonomy