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Measuring sustained superior performance at the firm level

This paper proposes a two-dimensional Strategic Performance Measure (SPM) to evaluate the achievement of sustained superior performance. This proposal builds primarily on the fact that, under the strategic management perspective, a firm’s prevalent objective is the pursuit of sustained superior performance. Three basic conceptual dimensions stem from this objective: relativity, sign dependence, and dynamism. These are the foundations of the SPM, which carries out a separate evaluation of the attained superior performance and of its sustainability over time. In contrast to existing measures of performance, the SPM provides: (i) a dynamic approach by considering the progress or regress in performance over time, and (ii) a cardinal measurement of performance differences and its changes over time. The paper also proposes an axiomatic framework that a measure of strategic performance should comply with to be theoretically and managerially sound. Finally, an empirical illustration of the Spanish banking sector during 1987-1999 is herein provided by discussing some relevant case

© Documents de treball, 2002, núm.8, p.1-36

Universitat Autònoma de Barcelona. Departament d’Economia de l’Empresa

Author: Grifell i Tatjé, Emili
Marquès i Gou, Pilar
Date: 2002
Abstract: This paper proposes a two-dimensional Strategic Performance Measure (SPM) to evaluate the achievement of sustained superior performance. This proposal builds primarily on the fact that, under the strategic management perspective, a firm’s prevalent objective is the pursuit of sustained superior performance. Three basic conceptual dimensions stem from this objective: relativity, sign dependence, and dynamism. These are the foundations of the SPM, which carries out a separate evaluation of the attained superior performance and of its sustainability over time. In contrast to existing measures of performance, the SPM provides: (i) a dynamic approach by considering the progress or regress in performance over time, and (ii) a cardinal measurement of performance differences and its changes over time. The paper also proposes an axiomatic framework that a measure of strategic performance should comply with to be theoretically and managerially sound. Finally, an empirical illustration of the Spanish banking sector during 1987-1999 is herein provided by discussing some relevant case
Format: application/pdf
Citation: Grifell-Tatjé, E. i Marquès-Gou, P. (2002). Measuring sustained superior performance at the firm level. Documents de treball, 8, 1-36. Recuperat 15 setembre de 2011, a http://webs2002.uab.es/dep-economia-empresa/documents/02-8.pdf
Document access: http://hdl.handle.net/10256/3566
Language: eng
Publisher: Universitat Autònoma de Barcelona. Departament d’Economia de l’Empresa
Collection: Articles publicats (D-OGEDP)
Is part of: © Documents de treball, 2002, núm.8, p.1-36
Rights: Tots els drets reservats
Subject: Planificació estratègica
Empreses -- Direcció i administració
Industrial management
Strategic planning
Title: Measuring sustained superior performance at the firm level
Type: info:eu-repo/semantics/article
Repository: DUGiDocs

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