The prevailing literature and empirical studies on management of organizational performance stress the increasing importance of non-financial performance measures and propose companies to implement some kind of integrated performance measurement system. The purpose of our study is to investigate the characteristics of performance measurement and management in large Slovenian companies, focusing also on the progress made in the 5-year period. The analysis is based on two surveys conducted in the spring 2003 and summer of 2008. We investigate what do companies understand by “successful performance”, what are the most and the least important performance measures for companies, and what performance measurement systems do companies use. By answering these questions we discuss the impact of our results on the future development and growth of firms. The research results show that large Slovenian companies consider “successful performance” mostly in terms of implementing the strategy, followed by pursuing the goals of the owners and achieving the goals of different stakeholders. Most large Slovenian companies perceive financial performance measures as more important than non-financial, although they claim they measure both perspectives of their business. Our research results also suggest that 68% of large Slovenian companies in our sample use balance scorecard or some other integrated performance measurement system. These findings are generally in line with the existing theory and empirical evidence from other countries. Our main conclusion is that the prevailing role of financial key performance indicators in large Slovenian companies is appropriate for monitoring the effects of the current financial crisis but if companies want to succeed in the long-run they have to base their decisions also on non-financial measures that enable monitoring of many important capabilities for achieving long-term strategic goals.
This paper aims to test the VAIC model in order to explore and recognize the relationship between Intellectual Capital (IC) components and the financial performance of companies, with an ambition to establish whether IC investment efficiency indicators can serve as potential leading indicators of the future financial performance of companies. We test our hypotheses by using the VAIC model. The data set includes more than 12,000 Slovenian companies within a 14-year period (from 1995 to 2008). OLS regression and panel regression method are used as tools. Most of the research hypotheses have been confirmed, but the results are of limited practical use. In contrast to the primary test, our test conducted on the ranked data indicates a high degree of correspondence between the improvement in rank of a companys IC investment efficiency and the improvement in rank of its financial performance in the peer group. As IC value is a result of above-average financial performance, the IC investment efficiency can potentially serve as leading indicators of future financial performance. By comparing the results of similar studies, we indicate possible systematic biases as potential sources of differences in the results, and suggest the areas that need further investigation.
<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-bidi-font-weight: bold; mso-ansi-language: EN-GB; mso-themecolor: text1;" lang="EN-GB"><span style="font-family: Times New Roman;">Performance management literature has been advocating the balanced use of non-financial measures alongside traditional financial measures, possibly within integrated performance measurement systems, since the early 1990’s. The purpose of this paper is to explore how contextual factors (such as company size, industry, and market position), business objectives and knowledge about contemporary management tools influence the decision to implement Balanced Scorecard or similar integrated performance management systems. We tested our research propositions regarding the influence of these factors by using survey data and a logistic regression model. The study is based on a survey conducted in 2008 on a sample of 323 Slovenian companies. The sample consists of large, medium, and small firms from different industrial sectors, including manufacturing and service. Overall, our results confirm contextual factors, such as company size and industry, and knowledge about management tools as most important determinants of integrated performance measurement systems usage. Although market position and business objectives also receive some support for their influence, the results are generally weaker and more ambiguous.</span></span></p>
Even though Internet usage in CEE population is increasing, it is below European average. The majority of companies are recognizing the need to do business electronically. However, most companies are currently still at the beginning stages: e-business does not reach operational processes indepth. Changes in the way a business is carried out influence business performance analysis. We argue that this happens mainly in the areas of customers, employees, intangibles, operational processes and also finance. For CEE e-business companies, at their present stage of development, the most important area is customer analysis. We present and discuss a number of measures that can be used to evaluate these areas and draw attention to some differences between traditional and e-business companies.
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