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

Babak Taheri, Umit Sezer Bititci, Martin Joseph Gannon, Renzo Cordina

Research output: Contribution to journalArticle

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.

Original languageEnglish
Pages (from-to)1224-1246
Number of pages23
JournalInternational Journal of Contemporary Hospitality Management
Volume31
Issue number3
Early online date8 Feb 2019
DOIs
Publication statusPublished - 18 Mar 2019

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learning
market
turbulence
service provision
innovation
scanning electron microscopy
Performance measurement system
Entrepreneurial orientation
Performance measurement
Entrepreneurial performance
methodology
firm
industry
Firm performance
effect
Turbulence

Keywords

  • Entrepreneurial Orientation
  • Market-focussed learning
  • Market-turbulence
  • Performance measurement

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

Cite this

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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.",
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