Purpose
Key performance indicators (KPIs) are in use to determine how and the extent to which the business objectives of an organization are achieved. This paper aims to evaluate the contribution of a research institute in terms of KPIs to support its process of decision-making towards, etc., innovation, sustainability and improvement.
Design/methodology/approach
In light of this, a systemic review was conducted on a set of relevant scholarly studies to identify the trends which shed light on the possible critical success factors to be effectively used in research institutes in association with the development of commercial agriculture. It examines whether, and if so how KPIs that are highly associated with those critical success factors are disruptive in research culture in an institute with certain organization design to promote research on innovative commercial agriculture.
Findings
The study highlighted some important aspects of commercial agriculture that showed strong links with possible critical success factors that could be used to develop a possible KPI set for a research institute. The salient features in a model performance management system with such KPIs of a research institute having strategical contribution for commercial agriculture are further elaborated.
Originality/value
This manuscript is a conceptual piece that advocates research institutes geared towards commercial agriculture development to begin using KPIs as part of research culture to evaluate their success. The paper suggests that commercial agriculture – perhaps, especially in developing countries – faces many challenges and using KPIs could help diagnose when and why essential processes break down. This study shows possible avenues of KPI use in research institutes that have not been very well discussed or discussed meagerly that have high potential to be integrated into successful KPIs towards innovative commercial agriculture.
The outcome of the performance measurement would be more convergent at decision making if KPIs are tightly bound with organization culture along with organizational design. Peripheral analysis methodologies which are taken into the lens before the performance management have a major role in understanding the organizational culture and dynamism behind the organizational design to identify strengths, weaknesses, and opportunities in a research institute's work for commercial agriculture development. The lack of a proper analyzing system to understand the critical success factors of a research institute towards innovative commercial agriculture has hampered the establishment of a good performance management system in research institutes towards this end. In this context, we highlight the most important avenues that could significantly improve the quality of performance, if used properly in the management of a research institute's work for commercial agriculture. How those management practices and tools could be streamlined by introducing new guidelines and policies in organization design have been elaborated. Further, it will provide an in-depth review of the most suitable peripheral analysis methodologies in place of the proposed structured procedure, to facilitate the selection process of obtaining an optimized KPI set. This KPI set, placed properly in the organization design, will direct performance drivers of a research institute to be on par with the competitiveness of the agriculture industry of a country.
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