Factors affecting performance measurement implementation: A SEM analysis

Organizational performance measurement (PM) systems continue to play a vital role for researchers and industry professionals in setting clear strategic goals with the aim of effectively managing and adapting performance to different organizational settings. While PM systems continue to be studied broadly, there are still many shortcomings with the implementation of these systems. Structural Equation Modeling (SEM) explores the relationships between multi-item constructs and is used in this study to understand the relationships among factors that drive PM implementation success. This current study builds on an initial empirical investigation that conducted a survey to measure factors affecting implementation success. Results of this current study show strong correlations between the factors that affect implementation processes, as well as the impact of these factors on a set of outcome variables. The results of this study provide a better understanding of the PM implementation process and support the development of strategies to improve the chances of success. This analysis provides a model that suggests the causal behavior of PM factors and recommendations for future work.