Title: Does the company size affect performance management system? PMSs in small, medium-sized, and large companies

Authors: Erkki K. Laitinen; Tarmo Kadak

Addresses: ACA Research Group, Faculty of Business Studies, University of Vaasa, P.O. Box 700, 65101 Vaasa, Finland ' Centre of Accounting, Department of Business Administration, School of Business and Governance, Tallinn University of Technology, Ehitajate tee 5, 19086 Tallinn, Estonia

Abstract: The objective of this research was to analyse how performance management systems (PMSs) differ from each other in small, medium-sized, and large firms. The results showed that the importance of key factors (KF) in successful PMSs differ between size groups. However, the strength of the KF chain was positively associated with the success of PMS in each size class. The research revealed a 'natural difference' between PMSs of small and middle-sized enterprises (SMEs) and large firms. Small firms focus more on operational aspects in control whereas large firms pay considerable attention also to strategic aspects. Small firms use more informal PMSs than larger firms.

Keywords: PMSs; performance management systems; company size effect; SME; chain model; key success factors; success of PMS; development of SMEs; management of SME's growth; dynamic adaptability; process orientation.

DOI: 10.1504/IJMED.2018.093549

International Journal of Management and Enterprise Development, 2018 Vol.17 No.3, pp.281 - 305

Received: 13 Oct 2017
Accepted: 22 Oct 2017

Published online: 13 Jul 2018 *

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