Growing Chinese organisations in the global arena: developing a performance measurement system in a state-owned enterprise

This case study aims to explore the challenges faced when developing a performance measurement system for an internationally expanding Chinese state-owned enterprise (SOE). In recent years, Chinese SOEs have gradually emerged as players in the global marketplace, making direct investments in overseas territories despite having a limited track record in multinational management. Using innovative action research, this study attempts to unveil the dilemmas in adopting a contemporary performance measurement system within an SOE. In particular, it articulates the challenges resulting from the power-centric characteristics of such an SOE when attempting to attain alignment with the diverse interests of stakeholders. We argue that the process of developing a decision facilitating and interactive performance measurement system was problematic owing to inherent factors inside the SOE. Global development of such an organisation under a transitional economy could be hindered by its tendency to remain inwardly focused and potentially misaligned interests with external stakeholders.