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The purpose of this paper is to assess whether performance measurement literature and as a result, practical applications, models and frameworks drawing from this literature are compatible with the central features of extended enterprises.

The paper is based on a bibliometric study that is supplemented with an empirical case study.

The results of this paper indicate that literature on performance measurement and literature on extended enterprises are only partially compatible. The common underlying reasons for measuring performance are highly valid also in the context of an extended enterprise. However, performance measurement processes and practices utilized within firms are to a considerable degree incompatible with central characteristics of extended enterprises. A highly apparent conflict between the two streams of literature is related to choosing individual performance measures (i.e. the question of what to measure). Performance measurement literature emphasizes intra‐organizational measures which conflicts starkly with the emphasis of inter‐organizational collaboration dominant in literature addressing extended enterprises.

The sample consists of articles published in many leading academic journals. The primary implication of this paper is that the importance of inter‐organizational relations and collaboration, and the lack of a central decision‐making authority should be taken into consideration when designing and implementing performance measurement systems for extended enterprises.

Managers implementing performance measurement systems may tend to adopt solutions recommended by industry actors and dominant performance measurement literature. As increasingly many firms operate as a part of an extended enterprise, the adoption of these off‐the‐shelf solutions poses considerable risks.

The main contribution of this paper is that it systematically assesses the compatibility of performance measurement and extended enterprise literature by means of a bibliometric analysis. In addition, the paper identifies key contributions from both streams of literature. An empirical case representing the shipbuilding industry is carried out to validate obtained findings.

The purpose of this paper is to document the outcome of a global three‐year long supply chain improvement initiative at a multi‐national producer of branded sporting goods that is transforming from a holding structure to an integrated company. The case company is comprised of seven internationally well‐known sport brands, which form a diverse set of independent sub‐cases, on which the same supply chain metrics and change project approach was applied to improve supply chain performance.

By using in‐depth case study and statistical analysis the paper analyzes across the brands how supply chain complexity (SKU count), supply chain type (make or buy) and seasonality affect completeness and punctuality of deliveries, and inventory as the change project progresses.

Results show that reduction in supply chain complexity improves delivery performance, but has no impact on inventory. Supply chain type has no impact on service level, but brands with in‐house production are better in improving inventory than those with outsourced production. Non‐seasonal business units improve service faster than seasonal ones, yet there is no impact on inventory.

The longitudinal data used for the analysis is biased with the general business trend, yet the rich data from different cases and three‐years of data collection enables generalizations to a certain level.

The in‐depth case study serves as an example for other companies on how to initiate a supply chain improvement project across business units with tangible results.

The seven sub‐cases with their different characteristics on which the same improvement initiative was applied sets a unique ground for longitudinal analysis to study supply chain complexity, type and seasonality.