Revisiting performance measurement and management: deriving linkages with strategic management theories

Abstract

The interest in performance measurement and management (PMM) has notably increased in the last two decades. The purpose of the paper is to revisit the research and knowledge base of the last two decades related to performance measurement and management and exploring the linkages with theories related to strategic management. A critical analysis of existing performance management frameworks has been carried out and an attempt has been made to derive linkages with strategic management theories. Ten PMM frameworks have been selected for the study, and some classical strategic management theories have been chosen for exploring the linkages of two areas, i.e., strategic management and performance measurement and management. The linkages with strategic management theories help to reflect the relationship between strategy and firm’s performance. The analysis carried out in the study reflects that most of the PMM frameworks follow resource-based view theory, and developments happened post 2000 considered stakeholder theory by inclusion of all the stakeholders, but still the PMM frameworks lack strategic orientation which is an eye-opening result that came out of the study. The results of the study can be validated by one of the empirical studies by Thaker (2011) stating that still business performance management systems are satisfying tactical purposes and are lacking in strategic thinking.