Title: Performance measurement system: case studies from SMEs in India

Authors: Milind Kumar Sharma, Rajat Bhagwat

Addresses: Department of Production and Industrial Engineering, Faculty of Engineering and Architecture, M.B.M. Engineering College, J.N.V. University, Jodhpur, Rajasthan, India. ' Department of Mechanical Engineering, Faculty of Engineering and Architecture, M.B.M. Engineering College, J.N.V. University, Jodhpur, Rajasthan, India

Abstract: Performance Measurement System (PMS) is underdeveloped and underresearched in Small and Medium Enterprises (SMEs). It has emerged as a vital decision support tool at the strategic management level in SMEs in the developing nations. This research explores and examines the PMS development through four select case studies in India. Another purpose of this study is to provide some preliminary insights on why SMEs adopt the PMS. It also aims to identify critical issues that would contribute to the effective performance measurement function in Indian SMEs. This research is exploratory in nature; a case study methodology is used for the research. Based on four case studies from diverse SMEs from three different states of western India, the paper presents four important issues – PMS strategy, competitive priorities, benefits observed/perceived by effective management of PMS function and barriers observed in implementing PMS practices. Based on the analysis of the case studies, several propositions as recommendations for effective PMS development in Indian SMEs are proposed.

Keywords: performance measurement systems; PMS strategy; small and medium-sized enterprises; SMEs; day-to-day business; case study; India; decision support systems; DSS; competitive priorities; benefits; implementation barriers; productivity; quality management.

DOI: 10.1504/IJPQM.2007.013338

International Journal of Productivity and Quality Management, 2007 Vol.2 No.4, pp.475 - 509

Available online: 21 Apr 2007 *

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