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1 – 10 of 28The purpose of this paper is to compare the characteristics of performance measurement in cross-functional and supplier-oriented purchasing and supply management (PSM) practices…
Abstract
Purpose
The purpose of this paper is to compare the characteristics of performance measurement in cross-functional and supplier-oriented purchasing and supply management (PSM) practices. It clarifies the purposes and content of performance measurement in three PSM practices.
Design/methodology/approach
A multiple case study approach is utilized in this study. Each of the cases is related to a contemporary performance measurement development project during the period 2015–2016. Interviews are conducted to obtain a pre-understanding of the research questions at hand. The case studies continue as an action research including measurement development workshops.
Findings
Identification of causalities between measurement objects and the measurement value benefits are contemporary issues of performance measurement development in the PSM context. The findings indicate that the measurement of outputs and outcomes instead of inputs and measurement supporting supplier relationship management is increasingly important in the service context. Measurement purpose affects the characteristics of PSM performance measurement. This study identifies that more informal control and non-standard measures are needed in interactive PSM practices such as cross-functional integration.
Research limitations/implications
The study provides practical examples of performance measurement in service purchasing, classifies the characteristics of performance measurement and highlights the need to extend the scope of measurement in the PSM context. The findings of the case studies reported support practitioners in developing performance measurement that satisfies contemporary managerial needs.
Originality/value
Earlier studies are often not explicit with the purpose of performance measurement. This study contributes to the existing literature by linking performance measurement characteristics to the understanding of PSM practices and providing a wider overview of the varying characteristics of performance measurement supporting strategic purchasing of services.
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Aki Jääskeläinen, Virpi Sillanpää, Nina Helander, Riikka-Leena Leskelä, Ira Haavisto, Valtteri Laasonen and Paulus Torkki
This study aims to report the design and testing of a maturity model for information and knowledge management in the public sector, intended for use in frequent monitoring, trend…
Abstract
Purpose
This study aims to report the design and testing of a maturity model for information and knowledge management in the public sector, intended for use in frequent monitoring, trend analysis and in-depth analysis of the contemporary information and knowledge management practices of an organization.
Design/methodology/approach
A design science approach was used to develop the proposed model. Creation of the model was based on an extensive literature review. Testing of the model was implemented as a survey receiving 37 responses from nine organizations organizing and purchasing public services.
Findings
The study presents four alternative profiles for an organization’s status, novice, experimenter, facilitator and advanced exploiter, and investigates the differences between these profiles on the basis of the empirical data gathered. The model was found to be both a valid and practical way to determine the state of an organization’s information and knowledge management and identify development needs.
Research limitations/implications
Testing was conducted in the Finnish public sector and further studies applying the model could be implemented in other countries. The model presented was designed specifically for the public sector and more research is needed to test its applicability in the private sector.
Originality/value
Maturity models are useful when evaluating information and knowledge management status in an organization, and beneficial for improving organizational performance. The proposed maturity model combines the fields of knowledge management and information management and contributes to the literature with an overarching maturity model that includes a dimension of satisfaction with the organizational maturity level. While many earlier models originate from the consultancy business, the model presented here was also designed for research purposes and tested in practice.
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Aki Jääskeläinen and Otto Thitz
The purpose of this paper is to clarify the prerequisites for performance measurement supporting purchaser-supplier relationships and value co-creation. It also explains the…
Abstract
Purpose
The purpose of this paper is to clarify the prerequisites for performance measurement supporting purchaser-supplier relationships and value co-creation. It also explains the causes for the limited use of collaborative measurement.
Design/methodology/approach
Four case companies representing different contextual settings are studied. The primary source of empirical material is an interview study addressed to 24 interviewees. The empirical data are analyzed according to the constructs created as a result of the literature review.
Findings
The results reveal that prevailing performance measurement practices represent a more transactional than relationship-oriented approach to purchaser-supplier collaboration. The technical prerequisites for collaborative performance measurement are mostly not fulfilled, inhibiting the use of performance measurement in a collaborative manner. It is proposed that the differentiation between project and process production types has implications on the importance of collaborative performance measurement.
Research limitations/implications
The paper illustrates the desirable characteristics of performance measurement supporting collaboration. It also presents an application of collaborative performance measurement in a single case context. The research reveals the need to develop non-financial performance measures further in order to facilitate the more proactive use of performance measurement supporting true value co-creation between purchaser and supplier companies.
Originality/value
The empirical research on the topic of performance measurement in purchasing and supply management (PSM) is often limited to intra-organizational measurement and highlights transactional approach to collaboration between parties, although PSM research has otherwise acknowledged the importance of value creation and relationships between organizations.
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Aki Jääskeläinen and Niklas Luukkanen
The purpose of this paper is to investigate how middle managers utilize performance measurement information in their work. More specifically, the study gives understanding on the…
Abstract
Purpose
The purpose of this paper is to investigate how middle managers utilize performance measurement information in their work. More specifically, the study gives understanding on the impact of performance measurement, policies and procedures (formal controls), and individual intuition and experiential knowledge (informal controls) on strategy implementation and decision making. The study also identifies hindrances to the use of measurement information.
Design/methodology/approach
The study is carried out as a semi-structured interview study in Finnish companies representing five industries and 29 interviewees. Empirical data were analyzed deductively according to the research framework combining informal and formal management controls with two managerial processes.
Findings
The work of middle managers is clearly affected by informal controls. Much of the managerial work relies on individual intuition and judgment based on experience instead of performance information or formal instructions. The study also unveiled that top management sees the status of utilizing performance measurement information in a more positive light than do middle managers. This is the case especially in strategy implementation. Deficiency of measurement information was found to be a key factor hindering the use of measurement information but improper analysis of results is also a challenge.
Research limitations/implications
This study examined the work of middle managers widely in different positions and industries which means that the findings are rather explorative. Simplification was required in order to operationalize the complex tasks of strategy implementation and decision making. Further, more contextually focused research is required in order to understand better the contextual causes of the findings and to provide more understanding on the appropriate ways of improving the utilization of performance measurement information.
Practical implications
The practical contribution of this study lies in the detailed description of strategy implementation and decision-making processes based on observations in several large companies representing different industries. The study also suggests areas to which development efforts should be concentrated on in order to improve the use of performance information among middle managers.
Originality/value
This study contributes to the earlier literature by highlighting the usage of performance measurement information as opposed to developing new measures. In addition, the novelty value of the paper relates to the focus in the work of middle managers which has gained less attention in the previous research.
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Aki Jääskeläinen and Juho-Matias Roitto
This paper aims to understand how performance measurement system development process can be supported by visualization techniques. It analyses the suitability of different…
Abstract
Purpose
This paper aims to understand how performance measurement system development process can be supported by visualization techniques. It analyses the suitability of different visualization techniques in the tasks needed in designing, implementing and using performance measurement.
Design/methodology/approach
The research builds upon literature review and analysis. The empirical access to five recent performance measurement system development projects is also used to evaluate the applicability of visualization techniques. The emphasis is in information visualization, and the following techniques are examined: maps, diagrams, networks, visualized models, graphs, charts and dashboards.
Findings
The study provides a concise overview on visualization techniques highlighting the managerial tasks related to performance measurement system development process. It contributes as a discussion opener inviting more academicians to study the topic of visualization in management and to further test and broaden the proposals presented in the paper.
Research limitations/implications
Further in-depth empirical research is needed regarding each phase of performance measurement development process. A further study could also stress more the proactive use of performance measurement paying attention also to the external environment.
Practical implications
The topic of information visualization is practically driven. The results support practitioners in evaluating and choosing visualization techniques supporting their timely challenges in the performance measurement development.
Originality/value
Few studies on information visualization have been carried out in the context of management science. Visualization can integrate human in the data exploration process and improve understanding over large data sets without complex quantitative methods. Visualization techniques have been proposed as powerful means to enhance the effectiveness of performance measurement. This study structures and clarifies the ambiguous topic of visualization and performance management and suggests areas for further research.
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Daniela Argento, Giuseppe Grossi, Aki Jääskeläinen, Stefania Servalli and Petri Suomala
The purpose of this paper is to explore the role of performance measurement systems as technologies of government in the operationalisation of smart city programmes. It answers…
Abstract
Purpose
The purpose of this paper is to explore the role of performance measurement systems as technologies of government in the operationalisation of smart city programmes. It answers the research question: how do the development and use of performance measurement systems support smart cities in the achievement of their goals?
Design/methodology/approach
This paper presents a longitudinal case study that uses an interventionist approach to investigate the possibilities and limitations of the use of performance measurement systems as technologies of government in a smart city. Interpretations are theoretically informed by the Foucauldian governmentality framework (Foucault, 2009) and by public sector performance measurement literature.
Findings
The findings address the benefits and criticalities confronting a smart city that introduces new performance measurement systems as a technology of government. Such technologies become problematic tools when the city network is characterised by a fragmentation of inter-departmental processes, and when forms of resistance emerge due to a lack of process owners, horizontal accountability and cooperation among involved parties.
Research limitations/implications
This paper is based on a case study of a single smart city, and outlines the need for both comparative and multidisciplinary analyses in order to analyse the causes and effects of smart city challenges.
Originality/value
This paper offers a critical understanding of the role of accounting in the smart city. The ineffectiveness of performance measurement systems is related to the multiple roles of such technologies of government, which may lead to a temporary paralysis in the achievement of smart city goals and programmes.
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Kati Loijas, Aki Jääskeläinen and Elina Karttunen
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic…
Abstract
Purpose
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic capabilities of a supplier and a buyer.
Design/methodology/approach
The study is based on the qualitative analysis of 20 interviews with informants representing Finnish public organizations and their private sector suppliers. The analysis is aligned with a theoretical framework connecting the phases of procurement and the capability types studied.
Findings
The findings of the study present the role of operational and dynamic capabilities of a buyer and a supplier in the implementation of performance-based procurement at public procurement phases. Preprocurement phase is found to greatly benefit from all three dynamic capabilities, while operational capabilities suffice in the contracting phase.
Social implications
Increased understanding on capabilities needed in performance-based procurement can increase the chances of success in reaching better value for money of public services and developing supplier markets.
Originality/value
The study contributes to the literature on performance-based public procurement and value-based selling by taking a dyadic approach to the operational and dynamic capabilities needed in business with an emphasis on performance. As the focus in public procurement shifts increasingly from resources to performance, involving a joint effort between buyer and supplier, the study provides insights into role of dyadic capabilities and explains how dynamic and operational capabilities together support the phases of performance-based procurement implementation in the public sector.
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Minna Saunila, Juhani Ukko and Aki Jääskeläinen
This study presents evidence of the role of performance measurement and management (PMM) in sustainable supply chain governance. This study tests a model hypothesizing whether it…
Abstract
Purpose
This study presents evidence of the role of performance measurement and management (PMM) in sustainable supply chain governance. This study tests a model hypothesizing whether it is the PMM itself or the mediating effect of supply chain governance that is essential for both business and sustainability performance.
Design/methodology/approach
This study builds on a survey of 274 SMEs in Finland.
Findings
The findings indicate that PMM does not directly contribute to SMEs’ business or sustainability performance. Supply chain governance mediates the relationship between PMM and business performance. Business performance also enhances sustainability.
Practical implications
These findings can guide managers in managing company relationships with customers and suppliers. The mediating role of supply chain governance highlights the potential of PMM to enhance performance. Without supply chain governance, the PMM, while efficient in traditional business practices, may lose its effectiveness because of the pressure to advance sustainability values within firm operations.
Originality/value
The role of PMM in enhancing supply chain sustainability is frequently overlooked in the existing research, necessitating an empirical evaluation of PMM’s impact on supply chain sustainability. This study addresses this gap by focusing on the SME context, where the pressure to adopt sustainable practices is increasing, yet SMEs employ PMM less frequently than larger firms.
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Aki Jääskeläinen, Katrina Lintukangas and Frederik G.S. Vos
This study uses social capital theory to analyze how social capital and supplier development support achieving supplier satisfaction and preferred customer status. The resulting…
Abstract
Purpose
This study uses social capital theory to analyze how social capital and supplier development support achieving supplier satisfaction and preferred customer status. The resulting model is compared between manufacturing and service suppliers.
Design/methodology/approach
A survey receiving 482 supplier responses from manufacturing and service suppliers was utilized and analyzed using partial least squares (PLS) path modeling and multi-group comparison tests.
Findings
The paper adds new explanations for preferred customer status through empirical evidence of relationships between supplier development, social capital, supplier satisfaction, and preferred customer status. Cognitive and relational capital directly support achieving preferred customer status. The role of supplier satisfaction in achieving preferred customer status is lower for manufacturing suppliers.
Research limitations/implications
Both service and manufacturing suppliers could also be studied in their specific industry settings. A more in-depth investigation of other business relationship dynamics, such as power, is needed in a future study.
Practical implications
Service and manufacturing suppliers need different strategies to obtain the benefits from supplier development and social capital building. For service suppliers, more intangible factors are relevant in comparison to manufacturing suppliers.
Originality/value
This study advances the literature in two main ways. First, it elaborates the role of supplier development and social capital in the path toward supplier satisfaction and preferred customer status as perceived by suppliers. Second, this study answers the calls for a better understanding of the contextual characteristics underlying potential differences in how preferred customer status is formed.
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Elina Karttunen, Aki Jääskeläinen, Iryna Malacina, Katrina Lintukangas, Anni-Kaisa Kähkönen and Frederik G.S. Vos
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Abstract
Purpose
This study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.
Design/methodology/approach
A qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.
Findings
The findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.
Social implications
Dynamic capabilities in public procurement are necessary to improve public procurement.
Originality/value
This study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.
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