Ranking of performance measurement systems for smaller businesses

Abstract

The Performance Measurement Systems (PMSs) seen as part of a factor that indicates the successful and unsuccessful company; especially in the Small and Medium Enterprises (SME's). The main objective is to analyze most suitable PMSs for Malaysian SMEs based on applicability. In the methodology, qualitative design with applied Analytic Hierarchy Process (AHP) is used. The expert panel is selected from practitioners linked with PMSs and SME's in Malaysia. The findings show the Balanced Scorecard (BSC) as first ranked of PMS in SMEs. Followed by BSC are the Theory of Constraints (TOC) and Result and Determinate Framework (RDF). The last three lowly ranked PMS which are the Medori and Steeple Framework (MDF), Dynamic Multi-dimensional Performance Framework (DMPF) and Holistic Performance Measurement Framework (HPMF). At the end of the study, the researcher makes the discussion and conclusion; it is also advised to improve and implement the suitable models in the Malaysian SME's for further success.