Measuring Performance of Small-and-Medium Sized Enterprises: The Grounded Theory Approach

Using the procedures stipulated by the grounded theory, this study reports the findings of in-depth semi-structured interviews with five owners-managers of small and medium sized enterprises (SMEs)on how performance is being measured. The findings reveal that the owners-managers use a hybrid approach combining both the financial and non-financial measures to evaluate performance against the predetermined goals and time. Time axis is based on the duration of completing a project. The findings have implications to both the SMEs and large organizations.