PurposeThis paper aims to examine, the specific literature related to performance measurement in the service sector. In the process, it also aims to classify and examine innovative approaches and models utilized to measure performance in service operational settings. Based on this investigation, the paper seeks to identify relevant benchmarking implications.Design/methodology/approachA database of 141 peer‐reviewed publications, published between 1981 and early 2008, was utilized for the purpose of this paper. The published works included contributions from both practioners and scholars.FindingsThe International Journal of Productivity and Performance Management is found to be the leading journal in terms of contributions to performance measurement in service operational settings. It contributed 25 articles. The bulk of published work appeared in international journals. These contributions were mixed in nature. They included empirical, conceptual, case studies, literatures reviews and interviews. The focus of the articles examined was also mixed. These articles tended to emphasis operational, customer, strategic, supplier, and environmental aspects of service.Research limitations/implicationsBased on the findings of this paper, it is concluded that this area of research is in need of more future efforts aimed at solidifying theoretical constructs and practical applications.Practical implicationsFindings derived from this investigation have relevant benchmarking implications. In this context, understanding the different approaches to performance measurement as utilized in service organizations is critical to the efforts of these organizations' performance improvement efforts.Originality/valueUnderstanding the types and scopes of the different approaches and models utilized to measure performance in service operational settings is important in light of the growing significance of the service sector.
