How to compare performances of firms operating in different sectors?

U. Bititci, S.U.O. Firat, P. Garengo

Research output: Contribution to journalArticle

16 Citations (Scopus)
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Abstract

This paper seeks to address the question ‘How to measure different SMEs’ performances comparatively?’ An initial review reveals that the literature does not provide objective and explicit debate on the subject. Consequently, an approach is developed, informed by the literature, which is used to compare the performances of 37 SMEs. The consistency and reliability of the approach is tested, resulting in a ranking of the 37 firms according to their performances. Using cluster and factor analysis the paper demonstrates that leading indicators are somewhat redundant, and that lagging indicators have greater significance for the purpose of comparative measurement of different SMEs performances. Whilst the approach adopted here withstood internal and external validity tests and can be seen as a robust way of comparing SMEs performances, these results may be limited to this study.

Original languageEnglish
Pages (from-to)1-18
Number of pages18
JournalProduction Planning and Control
Volume24
Issue number12
Early online date10 Jan 2012
DOIs
Publication statusPublished - 2013

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Keywords

  • SMEs
  • performance
  • measurement
  • comparisons
  • benchmarking

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