Published: 10.02.2020
by Marco Montemari , Maria Serena Chiucchi , Christian Nielsen
Purpose: The purpose of this paper is to explore how business models (BMs) can guide the design of a performance measurement system (PMS) and to shed light on the advantages and disadvantages of using BMs as a platform for designing a PMS and identifying key performance indicators (KPIs).
Design/Methodology/Approach: First, a normative approach is adopted to both reflect on the process leading from BMs to KPIs and highlight the role of concrete BM tools that management can use in this process. Second, a case study illustrates the applicability of the process and explores advantages and disadvantages that may arise when using the BM as a basis to identify KPIs.
Findings: Designing KPIs from the BM increases the relevance of the resulting PMS. Furthermore, BM tools support the identification, coordination, and prioritization of value drivers (VDs) (and the related KPIs), increasing the likelihood that managerial choices are focused on corporate value creation. However, the path leading from the BM to KPIs is strenuous and complex and it requires an in-depth knowledge of BM tools.
Research limitations/Implications: While the general limitations of case-based research should be acknowledged, the wider-ranging implications of the research are important not only for BM researchers, but also for scholars and practitioners working with management control.
Practical Implications: The paper describes a practical implementation process that managers can use to map their company’s BM, to identify and organize VDs, and, from that design, KPIs. This process has the potential to support the decision-making process in choosing relevant KPIs based on the BM, to aid in the management of the company’s performance and to help manage, innovate, and benchmark the BM itself.
Originality/Value: This paper advances our knowledge by addressing the usefulness of BMs from a performance measurement perspective.
Length: 22 pages
DOI: https://doi.org/10.5278/ojs.jbm.v7i5.1905
Download paperAuthor: Julio E. Cuc
Published: 10.02.2020
Issue: Vol 7, No 5 (2019)
Keywords: Business model research , bibliometrics , co-word analysis , research trends , bibliographic mapping
Authors: Jose M. Mateu , Alejandro Escribá-Esteve
Published: 10.02.2020
Issue: Vol 7, No 5 (2019)
Keywords: Business Model Innovation , Business model assessmenet , Busines model evaluation , Smart city , Smart Sustainable District
Authors: Margit Malmmose Peyton , Rainer Lueg
Published: 10.02.2020
Issue: Vol 7, No 5 (2019)
Keywords: business model change , corporate sommunication , performance measurement , discourse analysis , comparative case stury , Denmark , mergers and acquisitions
Authors: Yariv Taran , René Chester Goduscheit , Harry Boer
Published: 10.02.2020
Issue: Vol 7, No 5 (2019)
Keywords: Business Model Innovation , Risk Management , Retrospective case studies