Title: Performance measurement in SMEs: literature review and results from a German case study

Authors: Alexander Brem, Nico Kreusel, Christian Neusser

Addresses: Friedrich-Alexander University of Erlangen-Nuremberg, Lange Gasse 20, 90403 Nuremberg, Germany. ' VEND consulting GmbH, Burgschmietstr. 2–4, 90419 Nuremberg, Germany. ' VEND consulting GmbH, Burgschmietstr. 2–4, 90419 Nuremberg, Germany

Abstract: A literature review of Performance Measurement Systems (PMS) in Small- and Medium-sized Enterprises (SMEs) shows that the main contributions focus on the development of theoretical models, but not on guidelines for practical implementation. In this context, an important neglected aspect is the general fitness or readiness of a SME to implement a PMS. Therefore, the aim of this paper is to determine critical prerequisites for a successful PMS implementation in SMEs. For this purpose, a case study in a German SME was conducted. The findings indicate that the existence of specific contingency factors – Corporate Strategy, software-based Enterprise Resource Planning (ERP) and Activity Based Costing (ABC) – strongly supports the successful implementation of a PMS and its later use. Hence, further research shall include these prerequisites as new variables determining the PMS process. Based on that, researchers and managers of SMEs can develop individual indicators to identify their own PMS readiness.

Keywords: SME management; small and medium-sized enterprises; SMEs; performance measurement; activity based costing; ABC; enterprise resource planning; ERP; contingency factors; Germany.

DOI: 10.1504/IJGSB.2008.018102

International Journal of Globalisation and Small Business, 2008 Vol.2 No.4, pp.411 - 427

Published online: 01 May 2008 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article