Towards Performance Measurement in Virtual Organizations

Abstract

Traditional Performance Measurement methodologies are designed to assess efficiency of intra-organizational processes. Thosemodels are applicable for single companies or static networks running a streamlined set of performance indicators. Under thegiven changes in production paradigms, single enterprises and more static, long-lasting networks, e.g. Supply-Chains in theautomotive industry, lose significance to dynamic, order-specifically configured Virtual Organizations that highly dependupon the efficiency of their collaborative processes. Measuring the performance of those processes is not feasible with traditionalPM methodologies or at least an extension of those. Ongoing efforts in creating a PM framework for Virtual Organizations arefacing several research challenges. This paper describes and analyzes challenges towards a Performance Measurement methodologyfor Virtual Organizations.