Title: Interrelationships amongst performance measures towards excellence: a study of small and medium enterprises

Authors: T.V. Sreenath; Virupaxi Bagodi

Addresses: Department of Mechanical Engineering, B.V.B. College of Engineering and Technology, HUBLI – 580031, Karnataka, India ' Department of Mechanical Engineering, Government Engineering College, HAVERI – 581110, Karnataka, India

Abstract: Small and medium enterprises are vital in a modern economy. Financial indicators are often considered as a measure of healthiness. But, the understanding of various other indicators and their relation with the financial indicators enhances the understanding of the functioning of the SMEs. A research instrument was developed based on the works of many researchers to measure the items on Likert seven-point scale. This instrument was employed to gather the response from 200 working small and medium manufacturing enterprises to examine the financial and non-financial performance measures to understand their interrelationships in achieving excellence. Exploratory and confirmatory factor analysis, and path analysis were carried out. Employee indicators, process indicators, and customer indicators affect financial indicators. Employee indicators affect process indicators and process indicators affect customer indicators. This will help formulate strategies for higher growth.

Keywords: small and medium enterprises; SMEs; performance indicators; healthiness; path analysis.

DOI: 10.1504/IJBEX.2017.086319

International Journal of Business Excellence, 2017 Vol.13 No.2, pp.141 - 159

Received: 16 Jan 2016
Accepted: 06 Apr 2016
Published online: 04 Sep 2017 *

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