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

Babak Taheri (Lead / Corresponding author), Umit Bitici, Martin J. Gannon, Renzo Cordina

    Research output: Contribution to journalArticle

    3 Citations (Scopus)
    141 Downloads (Pure)

    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

      Fingerprint

    Keywords

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

    Cite this