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Performance measurement of networks: towards a non-financial approach

Author

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  • Harri I. Kulmala
  • Antti Lonnqvist

Abstract

This paper suggests that a holistic network-level Performance Measurement (PM) system could be used to control the business process and to guide the actors in networks to pursue common targets of the network. However, in the current literature, empirical evidence on network-wide PM seems to be limited to financial measures. Financial information alone is not adequate for determining overall performance. This paper examines the case study evidence from several Finnish organisations. The results provide a state-of-the-art review on how inter-organisational cooperation is currently managed in Finland using PM. Based on the empirical evidence and historical evolution of measurement, this paper goes on to discuss and illustrate how the non-financial performance of networks could be approached on the level of individual measures from the overall network management point of view. An illustrative conceptual example is built around delivery accuracy. This paper also discusses some new insights in applying holistic PM in networks.

Suggested Citation

  • Harri I. Kulmala & Antti Lonnqvist, 2006. "Performance measurement of networks: towards a non-financial approach," International Journal of Networking and Virtual Organisations, Inderscience Enterprises Ltd, vol. 3(3), pages 299-316.
    • Handle: RePEc:ids:ijnvor:v:3:y:2006:i:3:p:299-316
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    Citations

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    Cited by:

    1. Marikka Heikkilä & Harry Bouwman & Jukka Heikkilä & Sam Solaimani & Wil Janssen, 2016. "Business model metrics: an open repository," Information Systems and e-Business Management, Springer, vol. 14(2), pages 337-366, May.
    2. Selena Aureli & Andrea Cardoni & Mara Del Baldo & Rosa Lombardi, 2018. "The Balanced Scorecard Logic in The Management Control and Reporting of Small Business Company Networks: A Case Study," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(2), pages 191-215, June.
    3. Harri Laihonen & Sanna Pekkola, 2016. "Impacts of using a performance measurement system in supply chain management: a case study," International Journal of Production Research, Taylor & Francis Journals, vol. 54(18), pages 5607-5617, September.

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