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

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  • Erkki K. Laitinen
  • Tarmo Kadak

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.

Suggested Citation

  • Erkki K. Laitinen & Tarmo Kadak, 2018. "Does the company size affect performance management system? PMSs in small, medium-sized, and large companies," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 17(3), pages 281-305.
    • Handle: RePEc:ids:ijmede:v:17:y:2018:i:3:p:281-305
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    Cited by:

    1. Jiafeng Gu, 2021. "Spatiotemporal context and firm performance: The mediating effect of strategic interaction," Growth and Change, Wiley Blackwell, vol. 52(1), pages 371-391, March.

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