Measuring Organizational Performance: A Case Study of Food Industry SMEs in Surabaya-Indonesia
Date
2017-12-12Author
Sondakh, Oliandes
Christiananta, Budiman
Ellitan, Lena
Metadata
Show full item recordAbstract
The concept of the Balance Scorecard is premised on the need for financial and non-financial indicators that
enable a holistic measurement of performance of the organization. The food industry in Indonesia is
experiencing positive and significant growth in their performance, however in terms of quality is still not
satisfactory. Although performance measurement research has gain great interest, but the effectiveness of the
Balance Score Card as a performance measurement tool for food industry SMEs in Surabaya-Indonesia were
not widely studied. This research objective was to determine the performance of food industry SMEs in
Surabaya-Indonesia by using the Balance Scorecard as a performance measurement tool. This study was
designed as a cross-sectional survey of the SMEs food industry in Surabaya-Indonesia. The population was
112 food industry SMEs in Surabaya from which 88 SMEs were used as a sample in this research. Primary
data was collected using questionnaires which were administered to managers or owners in the firms. Data
was analyzed using descriptive analysis and presented in tables. The study found that on average the
respondents agree that they have good organizational performance. Organizational Performance based on
Customers Perspective rated as the highest performance, followed by Learning and Growth Perspective; and
Internal Business Process Perspective. The Financial Performance Perspective is rated relatively lower