Conceptualising Performance Measurement Systems in the Energy Sector: A Systematic Literature Review

The research highlights the need for continuous performance measurement systems (PMSs) conceptualisation in the energy sector necessitated by dynamic complexities (i.e. regulatory frameworks, multiple energy sources, and environmental issues). The main aim of this study is to conceptualise PMS in the energy sector through a systematic literature review (SLR). The qualitative study consists of the SLR and PMS audit guided by both the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 framework and the Shareholders’ Power and Interest Matrix. The study includes 33 academic journals from 2010 to 2024, cutting across the World Bank income classifications for developed and developing countries. Stakeholder influence in PMS design remains dominant for government institutions with stakeholders in developed countries having more power and influence than those in developing countries. Amongst other findings and contributions, the study concludes that there is a need for an integrated performance measurement system (IPMS) that holistically aligns strategic, tactical, and operational objectives, technology, management control, and responsiveness to external stimuli. This would be expected to create a viable and agile energy sector with practical administrative successes, energy security, and independence in energy servitisation, a widespread problem across all countries. The research recommends a systems approach in PMS conceptualisation over a cause-and-effect, fragmented, or bureaucratic approach. This research makes a novel contribution to the management accounting discipline which serves as a valuable resource for researchers, practitioners, and policymakers to conceptualise PMS effectively.