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PurposeThis paper provides an update of Neely et al.'s (1995) literature review "Performance measurement system design". It was commissioned to appear in a special issue of the International Journal of Operations & Production Management to celebrate the journal's 25th anniversary.Design/methodology/approachThe paper employs a citation/co‐citation analysis of work in the field of performance measurement to explore developments in the field globally.FindingsThe paper argues that scholars working in the field of performance measurement agree about the key research questions despite the fact that they come from different disciplinary backgrounds. The paper identifies the key contributors to the field based on a citation/co‐citation analysis and argues that the field is now entering a phase of empirical investigation and theoretical verification of some core concepts.Research limitations/implicationsThe research reported in the paper is limited to work that deals directly with performance measurement. It excludes related research – such as literature on management control and performance management – and clearly could be extended to include these literatures.Originality/valueThe paper will be valuable to scholars working in the field of performance measurement who wish to understand how the field has developed and evolved and/or those who are interested in avenues for future research.

Asks why business performance measurement has become so topical, so recently. Argues that there are seven main reasons: the changing nature of work; increasing competition; specific improvement initiatives; national and international quality awards; changing organisational roles; changing external demands; and the power of information technology. Evidence to support this assertion is drawn from the academic and practitioner literatures, interviews and discussions with people specialising in the field and a broad review of the current state‐of‐the‐art in business performance measurement. Presents a framework onto which current research in business performance measurement can be mapped and identifies areas which require further work.

It has been argued that production/operations management (P/OM)
emerged as a true functional field of management only during the 1980s.
If this is the case then one can hypothesize that P/OM research must
have changed considerably during the last decade. To test this
hypothesis all the articles published in the first ten volumes of the
International Journal of Operations & Production Management
were categorized using a framework based on research process reported.
Explains the development of this framework and presents the data
generated from the categorization process. These clearly show that
during the 1980s the content of P/OM research increasingly became of a
macro and soft nature.

This paper presents a holistic model of customer retention incorporating service quality perceptions, price perceptions, customer indifference and inertia. Data from a large‐scale postal survey of telephone users in England showed that perceptions of service quality have a direct linear relationship with customer retention even in mass services with low customer contact. Price perceptions and customer indifference too were found to have a direct linear effect on retention. Furthermore, it was also seen how both price perceptions and customer indifference moderated the relationship between service quality perceptions and customer retention. A linear relationship between inertia and customer retention was not found. Furthermore, there was evidence to indicate that inertia was a relatively unstable condition and that reliance by service providers on inertia to retain customers could indeed be a risky strategy.

The design and use of performance measurement systems has received considerable attention in recent years. Many organisations have redesigned their measurement systems to ensure that they reflect their current environment and strategies. However, increasingly the environment in which organisations compete is dynamic and rapidly changing, requiring constant modification of strategies and operations to reflect these changing circumstances. Despite this, few organisations appear to have systematic processes in place to ensure that their performance measurement systems continue to reflect their environment and strategies. This paper presents case study research that investigates what actions organisations can take to ensure that their measurement systems evolve over time.

The effectiveness of performance measurement is an issue of growing importance to industrialists and academics alike. Many organisations are investing considerable amounts of resource implementing measures that reflect all dimensions of their performance. Consideration is being given to what should be measured today, but little attention is being paid to the question of what should be measured tomorrow. Measurement systems should be dynamic. They have to be modified as circumstances change. Yet few organisations appear to have systematic processes in place for managing the evolution of their measurement systems and few researchers appear to have explored the question, what shapes the evolution of an organisation's measurement system? The research reported in this paper seeks to address this gap in the literature by presenting data that describes the forces that shape the evolution of the measurement systems used by different organisations.

Argues that a key, albeit implicit, theme which runs through much
of the manufacturing management literature is goal congruence. After
exploring the concept of goal congruence, proposes a methodology for its
measurement. This methodology has been used in two small manufacturing
enterprises (SMEs) in the UK. Presents some preliminary results from the
interviews conducted in one of the SMEs. In the final section the
authors explain their wider thoughts on goal congruence and highlight a
number of areas which require further research.

56 pages, 10 tables, 44 figures ; Every year, the UK spends £21 billion in the creation of new knowledge – via the science system in universities, research institutes and companies. This investment forms part of an estimated £600 billion, which is spent by OECD countries around the world, involving some 3 million researchers. Not surprisingly, every country asks the same questions – what are we getting out of this investment? And is it enough? To shed some light on the current situation in the UK, this report provides a census of the UK's science and technology system. It draws on publicly available data to review the performance of the UK science and technology system, both in terms of the investments made in the system and the outputs it delivers. Inevitably the census provides a partial picture of the UK's science base. The available data covers some of the activities being undertaken, but by no means all of them. Even with this caveat, the data that are available – particularly when viewed in terms of long-term trends – offer some interesting insights into the relative performance of the UK. Key among these insights are: ■ The UK has been under-investing in research and development relative to comparator countries for over 20 years, both in terms of total and per capita R&D investment. Business and government are the two R&D investing sectors largely responsible for this under-investment. ■ The UK remains one of the leading countries in terms of scientific production. However, the UK's performance varies significantly across academic disciplines. The UK performs outstandingly in most biology and bio-medical related fields, but its performance in chemistry, engineering and physics is relatively weak. ■ In chemistry and physics, the UK's share of world publications has decreased over the period 1996-2003, and it is ranked below many comparator countries2 in terms of the relative citation index. In engineering the UK also shows a decreasing share of world publications over the period 1996-2003, and it is the third lowest in terms of relative citation index (above only Japan and Finland amongst our set of comparator countries). ■ The UK has under-performed throughout the 1980s and 1990s – relative to the comparator countries – in terms of patenting, both per capita and per unit of investment (i.e. business expenditures on R&D). The UK's underperformance is particularly marked relative to Germany, Japan and several small, high-tech countries. ■ Finally, the UK remains comparatively well connected to the international science and technology system, as shown by the share of R&D investment and patenting activities conducted abroad by UK companies, and the high proportion of R&D investment in the UK by non-UK owned companies. These findings have several implications for the UK, in terms of the performance of the science and technology system. ■ While the UK has traditionally been one of the world's leading countries in terms of the generation of scientific knowledge, it is questionable whether this position can be sustained given the long-term trends with regard to R&D investment and scientific performance. ■ This question of sustainability becomes even more significant in light of the emergence of new centres of knowledge creation – i.e. referred to as the newcomer countries in this study. One could view these 'newcomer countries' as new competitors in terms of the production of scientific and technological knowledge. ■ However, scientific competition may not be the right way to think about the challenge posed by the newcomer countries. If we adopt the perspective of an open science and innovation system, the emergence of new centres of knowledge production should be seen as an opportunity for scientific collaboration. In this sense, the challenge for the UK is how to ensure it can engage in the global knowledge production process and develop the countries capacity to absorb relevant knowledge. ; Peer reviewed

Purpose
– In an effort to further explain why manufacturing firms that move towards service provision often do not achieve the financial benefits they would expect, the purpose of this paper is to examine the impact of service additions on the risks affecting the firm.


Design/methodology/approach
– Using data drawn from a sample 129 bankrupt manufacturers (75 servitized and 54 non-servitized) and a categorization framework of failure risks, the study explores the impact of the presence of a service business on environmental and internal bankruptcy risks that a manufacturing firm must face.


Findings
– The study finds that the presence of a service business leads to a greater number of bankruptcy risks for the supplying firm. This is essentially because of greater internal risks. In addition, two types of service offerings are identified – demand chain and product support services. When firms offer demand chain services, they are also exposed to greater environmental risks.


Research limitations/implications
– The study provides empirical evidence on the relationship between servitization and bankruptcy risks, and on how this is influenced by the type of service offering. The research should be extended by a more comprehensive assessment of organizational risks in order to further validate and develop the conclusions.


Practical implications
– The study suggests that, as adding services introduces new risks for firms, managers have to seek means of mitigating these risks to ensure successful introduction of services.


Originality/value
– The paper addressed the gap in the literature for structured analyses of the risk consequences of service strategies.