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Understanding the relationship between PMS and MIS in SMEs : the key role of organizational development

Garengo, P. and Nudurupati, Sai and Bititci, Umit (2007) Understanding the relationship between PMS and MIS in SMEs : the key role of organizational development. Computers in Industry, 58 (7). pp. 677-686. ISSN 0166-3615

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Abstract

This research aims to investigate the relationship between performance measurement system (PMS) and management information system (MIS) adopting a company life-cycle approach. The scope is to show if and how MIS influences PMS and vice versa. The investigation is carried out using the case study methodology in Italian and Scottish small and medium enterprises (SMEs). The empirical results are synthesized in two theoretical propositions. The first proposition underlines the presence of two circular relationships between PMS, MIS and organizational capability. The first relationship is that; PMS implementation and use promote development in organizational capability, and that improvements in organizational capability supports PMS implementation and use. The second relationship is that; advanced MIS create a favourable context for PMS implementation and use, and that PMS implementation and use encourages investments in MIS. The second proposition emphasizes that company maturity has a relevant impact on MIS and PMS development where mature organizations are able to recognize their needs and are able to design effective MIS responding to PMS requirements. On the other hand, in less mature organizations an external stimulus is essential for supporting MIS investment and PMS implementation and use.