How do measurement objectives influence the R&D performance measurement system design?: Evidence from a multiple case study

Abstract

Purpose The purpose of this paper is to address the problem of designing a performance measurement system (PMS) for research and development (R&D) activities; in particular, it investigates if and how different objectives for the PMS use influence the design of its constitutive elements. Design/methodology/approach A literature review was first conducted, aimed at identifying the constitutive elements of a PMS for R&D and the major purposes for its use. Then, a multiple case study involving four Italian technology-intensive firms was undertaken for investigating the relationship between PMS constitutive elements and measurement purposes. Findings Different PMS objectives imply significantly different design choices for constitutive elements. Even when companies are very different in terms of size and sector of activity, similar objectives lead to very similar PMSs. Research limitations/implications The research is qualitative. Further research should aim to increase the rationality and objectivity of the proposed relationships and explore the joint effects of the measurement objectives and other contextual factors on the measurement system design. Practical implications R&D managers who plan to design a PMS for their departments can follow the guidelines suggested in the paper to tune the basic features of the PMS to the real objectives they mean to pursue. Originality/value It is the first attempt, to the best knowledge of the authors, that explicitly and practically suggests how to tailor the design of each PMS's constitutive element according to the objectives that are pursued. © 2007, Emerald Group Publishing Limited