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

Taheri, B. and Bititci, U. and Gannon, M. and Cordina, R. (2018) Investigating the influence of performance measurement on learning, entrepreneurial orientation and performance in turbulent markets. International Journal of Contemporary Hospitality Management. ISSN 0959-6119 (In Press)

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    Abstract

    Purpose: This study examines how comprehensive performance measurement systems (CPMS) influence entrepreneurial orientation, market-focused 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 (LMT vs. HMT) on the relationships between these concepts. Design: PLS-SEM was employed 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.