Investigating the influence of performance measurement on learning, entrepreneurial orientation and performance in turbulent markets

B. Taheri, Umit Bititci, M.J. Gannon, R. Cordina

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose
This study aims to examine how comprehensive performance measurement systems (CPMS) influence entrepreneurial orientation, market-focussed learning (MFL) and employees’ perceptions of firm performance within a service-provision context. It also considers the moderating effect of low and high levels of perceived market-turbulence (low-turbulence environments [LMT] vs highly turbulent environments [HMT]) on the relationships between these concepts.

Design/methodology/approach
PLS-SEM was used to test the hypothesised relationships using survey responses from 198 employees of a leading multi-branch travel agency in Iran.

Findings
The findings demonstrate that CPMS positively influence MFL and, in doing so, have a positive effect on perceptions of firm performance. However, the findings also suggest that CPMS negatively influence entrepreneurial orientation, and therefore can also negatively influence perceptions of firm performance. Further, the relationships between CPMS, entrepreneurial orientation, MFL and firm performance are stronger for HMT when compared to LMT for all relationships.

Practical implications
Industry managers should adapt their CPMS to include measures specific to intra-organisational entrepreneurship and innovation and should pursue greater understanding of changing customer preferences.

Originality/value
This study highlights the importance of MFL as a means of avoiding the negative impact of underdeveloped market research on performance in the turbulent Iranian context. Contrary to previous literature, it provides an example of how CPMS can negatively influence entrepreneurial orientation in such environments.

Keywords
Original languageEnglish
Pages (from-to)1224-1246
Number of pages23
JournalInternational Journal of Contemporary Hospitality Management
Volume31
Issue number3
DOIs
Publication statusPublished - 18 Mar 2019

Keywords

  • performance measurement
  • entrepreneurial orientation
  • market-focussed learning
  • market-turbulence

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