Measuring Performance in Small and Medium
Enterprises in the Information & Communication
Technology Industries
A thesis submitted in fulfillment of the requirements for the degree of
Doctorate of Philosophy
Donglin Wu
M. Mgt., B.Sc.
School of Management
College of Business
RMIT University
February 2009
Declaration
- i -
DECLARATION
I certify that except where due acknowledgement has been made, the work is that of the
author alone; the work has not been submitted previously, in whole or in part, to qualify
for any other academic award; the content of the thesis is the result of work which has
been carried out since the official commencement date of the approved research
program; and, any editorial work, paid or unpaid, carried out by a third party is
acknowledged. Ethics procedures and guidelines approved by university for my project
have been followed.
Date:
Donglin Wu
Acknowledgements
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ACKNOWLEDGEMENTS
This work would not have been possible without encouragement and help from many
people. I’d like to take the opportunity to express my gratitude to all of them.
I am very grateful to my senior supervisor, Dr. Fang Zhao, for her support and patience.
She has not only inspired my work, but has given valuable guidance regarding research
methods and academic-skill development; also, sincere thanks to my second supervisor,
Dr. Prem Chhetri, for his help and kindness.
I am extremely grateful to my wife, Yuping Li, for her love, support, and
encouragement. Also thanks to my eleven-month son, Ethan Houi Wu, for creating
happy and relaxing times when I was undertaking this difficult work.
I would like to highlight the help from both the interviewees and SMEs that were
involved in the questionnaire. The research data they provided made this thesis possible.
Thanks also go to the staff of the Research Development Unit and School of
Management at the RMIT Business School. Finally, thank you to RMIT, for providing
financial support, a study environment, and equipment.
List of Publications
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LIST OF PUBLICATIONS
The following is a list of publications done during the course of research.
Conference Publications
Wu, D. (2006). The Performance Measurement in SMEs, An New Approach.
Performance Measurement and Management: Public and Private, Papers from the 5th
International Conference on Theory and Practice in Performance Measurement and
Management, London, UK, Cranfield University. ISBN: 09533761 5X
Wu, D. and Zhao, F. (2007). Alignment and Integration of Competitive Intelligence
System: A Case Study. 2007 Information Resource Management Association (IRMA)
International Conference, Vancouver, Canada
Wu, D. and Zhao, F. (2007). Entry Modes for International Markets: Case Study of
Huawei, a Chinese Technology Enterprise, 3rd International Business Research
Conference, Melbourne, Australia
Book Chapter and Journal Papers
Wu, D. and Zhao, F. (2008). Performance measurement in the SMEs in the information
technology industry. Information Technology Entrepreneurship and Innovation.
Hershey, USA, Idea Group, Inc.: p79-99. ISBN: 978-159904901-4
Wu, D. and Zhao, F. (2007). "Entry Modes for International Markets: Case Study of
Huawei, a Chinese Technology Enterprise." International Review of Business Research
Papers 3(2): 180 - 193. ISBN: 1832-9543
Table of Contents
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TABLE OF CONTENTS
DECLARATION .......................................................................................i
ACKNOWLEDGEMENTS .....................................................................ii
LIST OF PUBLICATIONS ................................................................... iii
LIST OF FIGURES.................................................................................ix
LIST OF TABLES...................................................................................xi
LIST OF ABBREVIATIONS .............................................................. xiii
ABSTRACT ...........................................................................................xiv
Chapter 1 Introduction ..........................................................................1
1.1 Background ............................................................................................... 1
1.2 Aims of the Study...................................................................................... 2
1.3 Scope of the Study..................................................................................... 2
1.4 Research Questions ................................................................................... 3
1.5 Research Design........................................................................................ 3
1.6 Contributions of the Study......................................................................... 4
1.7 Thesis Structure......................................................................................... 5
Part I LITERATURE REVIEW..............................................................7
Introduction .......................................................................................................... 7
Chapter 2 Performance Measurement..................................................8
2.1 Introduction............................................................................................... 8
2.2 Definition of Performance ......................................................................... 8
2.3 Performance Measurement ........................................................................ 9
2.3.1 Definition of Performance Measurement............................................ 9
2.3.2 Functions of Performance Measurement .......................................... 10
2.3.3 The Evolution of Performance Measurement ................................... 11
2.4 Performance Measurement Frameworks .................................................. 13
2.4.1 Overview of Performance Measurement Frameworks ...................... 13
2.4.2 The Balanced Scorecard................................................................... 15
2.4.3 The EFQM Excellence Model.......................................................... 17
2.4.4 The Performance Prism.................................................................... 20
2.4.5 The Malcolm Baldrige National Quality Award............................... 22
2.4.6 Kanji’s Business Excellence Measurement System .......................... 24
2.4.7 Comparing PM frameworks: Strengths & Weaknesses..................... 26
2.5 PM Sturcture and Processes..................................................................... 29