Purpose – To determine the current state of knowledge related to performance measures and their degree of implementation in small and medium enterprises (SMEs) in England. Design/methodology/approach – The paper starts with a literature review and then goes on to discuss the methodology used. The survey is briefly presented together with the analysis of the resultant data. General opinions regarding performance measurement in English SMEs are described, including the most important measures and the biggest obstacles to the adoption of new ones. Hypotheses about differences between groups are tested and discussed. Findings – This work concludes that there is a gap between the theory/knowledge of performance measures and the practice in English SMEs. Training of employees and difficulty in defining new performance measures were highlighted as the major obstacles to the adoption of new performance measures. Research limitations/implications – The low response rate of the survey precludes the generalisation of the findings. Practical implications – Innovation and learning measures should be applied more widely. Originality/value – This paper is relevant to academics and SME managers because it supports the existence of a gap between the theory of performance measurement and its degree of implementation. In addition, it introduces both theoretical information on performance measurement, including that based on the balanced scorecard perspectives, and practical information from a survey conducted in English SMEs.

Quality gurus all recognise the importance of measurement to track progress and ensure quality improvement according to an accepted plan. They emphasise the use of local measures for evaluating performance because of the ease with which a standard can be established. To measure quality, all areas of an organisation and its environment must be addressed. A performance measurement system (PMS) must contribute to and be integrated with other management objectives. In addition, the benefits of using such a system should outweigh its cost. By integrating quality with dimensions of company performance related with core, support and management processes, and considering the constraints associated with small and medium enterprises (SMEs), a framework to foster their performance was developed. The aim was to provide a strategy for implementing various quality measurement tools as part of a continuous improvement programme. The resultant framework is also a means of complying with the associated principles of ISO 9001. Overall, it is argued that the maturity of an SME affects the success of PMSs and quality management systems (QMSs). Finally, this work attempts to bridge the gap between theory and practice by providing SMEs with a framework to help them improve, and thus become more competitive and sustainable.

This paper describes a survey that was undertaken at the initial stage of a research project looking at performance measures and quality tools. Its objective was to determine the level of knowledge of performance measures and their degree of implementation in small and medium enterprises (SMEs) in Portugal. It also addressed the level of use of quality tools in the same companies, since they provide some degree of integration between the external requirements of a business and its internal activities and performance (Gregory, 1993 Gregory, M. J. 1993. Integrated performance measurement: a review of current practice and emerging trends. International Journal of Production Economics, 30–31: pp. 281–296. [Google Scholar] ). Most research to date has concentrated on large companies and so an important part of this work is to assess whether or not SMEs can adopt similar approaches with respect to quality, or in general, to management methodologies. For example, are ISO standards, TQM, balanced scorecard, or other excellence models beneficial to all companies and how are they implemented? The paper starts with a brief literature review and then presents the methodology used for the survey, the questionnaire construction and the pilot study. The full survey is described together with a comprehensive analysis of the results, including respondent bias and questionnaire reliability and validity. The general opinions of Portuguese SMEs with regard to performance measurement, the most important measures to use and the biggest obstacles to their adopting new ones are discussed. The paper culminates with an analysis of quality tools and the conclusions drawn from the study.