Bridging theory and practice: Performance management in SMEs – the Gun Collection experience

This study aims to analyze performance management practices at Gun Collection, a family-owned SME operating in the apparel retail and distri­bution sector, facing operational challenges and opportunities for growth in local markets. Using a case study approach, this research explores key elements of the performance management system, including perfor­mance evaluation, employee development, rewards and compensation, and compliance with labor regulations. Theoretically, this study employs the framework developed by Aguinis (2019), identifying five key dimen­sions in the performance management process: Prerequisites, Perfor­mance Planning, Performance Execution, Performance Assessment, and Performance Review. This research adopts a qualitative case study method. The findings reveal that Gun Collection successfully imple­ments a structured performance management system through regular evaluations, technical and interpersonal training programs, contribution-based rewards, and adherence to labor regulations. This holistic approach enhances individual productivity and team collaboration and strengthens a competitive and sustainable organizational culture. However, the study also highlights challenges such as limited resources and the need for adaptation in a dynamic business environment. The study contributes theoretically by expanding the understanding of performance manage­ment implementation in SMEs, particularly in developing countries. Practically, the findings guide SME practitioners to design relevant and effective performance management systems to support organizational growth and sustainability.