Key performance indicators for innovation implementation : perception vs. actual usage

Abstract

This paper aimed to explore the proportion associated with the perceived importance and the actual use of performance indicators from manufacturing and non manufacturing industries. The sample was 86 small and medium sized-organizations in Thailand. The perceived importance and the actual use of financial and non financial indicators were found to be significantly related among manufacturing and non manufacturing industries. KPI 3, 9, and 12 (i.e. sales and sales growth; quality of products and /or services; and process time) were perceived the most importance among manufacturing managers (85.3 79.4% and 76.5% respectively). While KPI 6, 9, and 12 (i.e. customer satisfaction, quality of products and /or services; and process time) were perceived the most importance among non manufacturing managers (84.8 93.5 and 84.8% respectively). Interestingly, the most used KPIs for manufacturing were sales and sales growth (64.7; profit margins (61.8; and customer satisfaction (84.8) while non manufacturing used quality products/services (60.9; sales and sales growth (54.3 and employee development (54.3 respectively. Limitation and implication were also discussed.

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