Performance measures in English small and medium enterprises: survey results

Abstract

PurposeTo determine the current state of knowledge related to performance measures and their degree of implementation in small and medium enterprises (SMEs) in England.Design/methodology/approachThe paper starts with a literature review and then goes on to discuss the methodology used. The survey is briefly presented together with the analysis of the resultant data. General opinions regarding performance measurement in English SMEs are described, including the most important measures and the biggest obstacles to the adoption of new ones. Hypotheses about differences between groups are tested and discussed.FindingsThis work concludes that there is a gap between the theory/knowledge of performance measures and the practice in English SMEs. Training of employees and difficulty in defining new performance measures were highlighted as the major obstacles to the adoption of new performance measures.Research limitations/implicationsThe low response rate of the survey precludes the generalisation of the findings.Practical implicationsInnovation and learning measures should be applied more widely.Originality/valueThis paper is relevant to academics and SME managers because it supports the existence of a gap between the theory of performance measurement and its degree of implementation. In addition, it introduces both theoretical information on performance measurement, including that based on the balanced scorecard perspectives, and practical information from a survey conducted in English SMEs.

The Adoption of Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises

“…They also found that smaller businesses were most likely to be dissatisfied with their management accounting systems. In a later study, Sousa et al (2006) determined the current state of knowledge related to performance measures and their degree of implementation in SMEs in the U.K. Overall, financial measures were the most widely used, while innovation and learning measures were rated less important and were less used.…”

“…Researches into management accounting among SMEs such as by Hopper et al (1999); Jarvis, Kitching, Curran, & Lightfoot (2000); Marriott & Marriott (2000); Reid & Smith (2002) and Sousa, Aspinwall, & Rodrigues (2006) are still fragmented and focused on a different aspects of management accounting. Therefore there is only a few pieces of information regarding the use of MAPs in SMEs have been found in the literature.…”

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“…The topic of management accounting information employed in the enterprise was more interested in scholars, however, there is a dearth of studies regarding the use of management accounting among SMEs. Studies of management accounting among SMEs conducted by by Hopper et al (1999), Jarvis et al (2000), Marriott et al (2000); Reid & Smith (2002), and Sousa et al (2006) are still fragmented and focused on a different aspects of management accounting. Mitchell & Reid (2000) argued that the expertise and capacity to innovate in management accounting is less likely to exist.…”

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“…Non-financial performance was used by Tuanmat & Smith (2011) to measure organizational outcome, as with respect to product availability, product quality, and sales service and support. Sousa, et al (2006) also used productivity, customer satisfaction, and customer needs to assess the company's performance. Furthermore, Isobe, et al (2008) developed a list of long-term performance indicators, including new product and technological innovations.…”