Contemporary performance measurement and management (PMM) in digital economies

The rate of change in the world is increasing both in scope and magnitude by rapidly developing digital technologies. The challenging problem for performance measurement and management (PMM) in the digital era is twofold: firstly, the constant change in the external environment is compelling PMM to be more dynamic. Secondly, organisations have to deal with different varieties and volumes of data to create competitive advantage. The aim of this paper is to explore how PMM models and practices should be renovated to be resilient and reflect advances in the digital economies. Literature review on the state of the art was conducted covering the issues faced by organisations in the digital economies and their relevance to PMM. A case study was conducted to explore the practitioner perceptions of dealing with the issues faced in digital economies as well as to understand how they are making changes to their PMM. The key findings from the study include: (1) Organisations should refocus their measurement efforts to incorporate evaluation of their performance over a wider network involving various stakeholders. (2) Organisations need to understand how technological developments could create competitive advantage through their strategy and deploy it to relevant positivistic and behavioural measures.