THE IMPACTS OF ADOPTING PERFORMANCE MEASUREMENT SYSTEMS (PMSS) ON THE PERFORMANCE OF THE JORDANIAN INDUSTRIAL ESTATES' COMPANIES

Abstract

The study aims to investigate the effects of Performance Measurement Systems (PMSs) on the performance of manufacturing companies within Jordanian industrial estates, addressing a significant gap in the literature. Data was collected from manufacturing companies in Jordan through questionnaires and analysed using the SmartPLS software. The findings indicate that Comprehensive PMSs (CPMSs), which are systems that employ a wide variety of broad financial and non-financial indicators delivering information covering various areas of firms’ operations and integrated with strategy across the firm, positively affect financial, non-financial, and overall performance, as well as organisational effectiveness. However, while CPMSs significantly impact employee empowerment, empowerment does not have a direct impact on organisational performance. Conversely, effective implementation of CPMSs leads to increased employee engagement, which in turn positively influences organisational performance. The study also identifies the degree to which some challenges are faced in PMS implementation as reported by companies. Such challenges include resource constraints and the need for adaptability in dynamic environments.