Kennerley And Neely's EFQM And Integrated Performance Model

Kennerley & Neely (1980) argued that historical financial data is not enough to satisfy the performance measurement in the new economy due to the increasing complexity of enterprises and the markets in which organization competes. As pointed out by Cumby & Conrod (2001), sustainable shareholder value is instead driven by non-financial factors, such as customer loyalty, employee satisfaction, internal processes, and an organization’s innovations. As a result, last few of years a series of performance model had developed by different scholars such as the Balance Scorecard (Kaplan and Norton 1996), the performance prism (Neely, Admas et al.2001), the EFQM Business Excellence Model (Shergold & Reed 1996; EFQM, 2003) and Integrated Performance Model

Generally, business performance or success means that the operational ability to satisfy the desires of the enterprise’s major objectives (Smith & Reece, 1999). Another study argued that business practices consist of ways of transforming business values into the process for achieving business objectives (Gamini & Senathiraja, 2003). In addition, several researchers identified a positive relationship between business practices and enterprise performance or success (Lau, et al. 2004; Prajogo & Sohal, 2003). The same result found that the large firm and micro and small enterprise performance depend on business practices or management activities (Wijewickrama, 2008). Another study explored that micro and small business performance has a positive relation with business practices, strategies, and owner-manager relations Blackburn et al. (2013). Storey (1994) outlined earlier in the conceptual framework of his investigation into three linked areas: business characteristics; owner-manager characteristics; and business strategy. Pushpakumari & Wijewickrama (2008) established that most micro and small enterprises are driven by the need to imitate large firm activities in order to establish a set of desirable management activities for achieving organizational objectives effectively and efficiently. Cheungsuvadee (2006) also observed that business adoption strategies have followed by many micro and small to survive in the competitive environment. Furthermore, Ates et al. (2013)

(2009) noted that micro and small enterprises are still plagued by high failure rates due to simple management mistake and poor performance levels despite their many contributions It is supported by Goltz (2011) small business fails due to lack of proper planning, improper financing, and poor management. Furthermore, Analui & Karamai, (2003) also argued that the major reasons for micro and small enterprise failure are related to managerial causes such as the lack of strategic thinking and long-term planning. Additionally, Fawcett & Myers (2001) described that enterprises performance is directly motivated by organizational strategy and structure; it refers that choice of business practices. Kelliher & Reinl, (2009) suggested that micro and small business should inject their valuable resources into their core business strategies, and implement the strategies by using best business practices as a tool to accelerate their performance or improvement; it will also ensure the long-term survival and