Proposal of a method for performance measurement system design and implementation of a software application in SMEs

This paper proposes a method for PMS design in SMEs and an information system (IS) compatible with the PMS formulated using this method. It also discusses the barriers for PMS and software implementation in SMEs. Both the PMS design method and the IS requirements were based on a literature review. The software was then developed and a pilot case was conducted in an SME using action research to evaluate the factors influencing its adoption. After the pilot case, it was possible to identify important factors that may enable or hinder PMS and software implementation. One main finding is that an incremental approach is more suitable to the needs of SMEs, since it increases PMS buy-in and facilitates organisational learning concerning performance measurement fundamentals. As for the pilot case, the organisation's IS manager proved to be indispensable for implementing the PMS due to his holistic view of the company.