Firm performance – from how to measure to how to manage. An overview

Abstract

The term ‘performance’ and the two main concepts, performance measurement, and performance management, have evolved, becoming an important topic for both academics and practitioners. As a result, the literature in the past decades has grown exponentially, containing various definitions, frameworks, and models. The purpose of this paper is to exhibit the evolution of ‘performance’ determined by the major breakthroughs, the models and frameworks created, which one is the most common and used in practice and if innovation, social and environmental concerns could lead to the design and implementation of a new performance framework.