How does a simplified performance measurement system affect decision making within SMEs?

Although performance measurement models are frequently used by larger companies, little is known of the impact and possibilities for SMEs and how they could support decision making within these smaller companies. Larger companies have more possibilities to structure and design processes and procedures that make decision making based on performance indicators part of the overall company policy. Theoretical findings are indicating that implementing a PMS could support the decision-making processes in SMEs and help them improve their management processes and strategic control. PMSs should support SMEs to manage uncertainty, to innovate their products and services, and to sustain evaluation and change processes (Garengo et al., 2005). The aim of this research is to find out whether it is possible to design and test a simplified model to measure performance for SMEs in order to facilitate better decision making.