The Organisation of Performance Measurement in an Extended Enterprise

Abstract

This chapter discusses the administrative requirements for business integration between partnering companies in the extended enterprise who operate a performance measurement (PM) system. It argues that, while on the one hand, interorganisational performance measurement is expected to become increasingly significant in the research literature, it is currently difficult to legislate and coordinate the various PM activities that must be taken into account so as to overcome the disparity in geographical location and culture of extended enterprise nodes. Furthermore, while Extended enterprise performance measurement concepts are increasingly being promulgated, the complex nature of these models has made business integration of the firms involved a difficult task: There are problems with regulating the policies and behaviour of those who participate in the system, as well as assessing their understanding of the process itself. These problems are tackled here by the development of a series of questionnaires and assessment checklists, and by their application in an empirical study in an extended enterprise of the automotive industry.