From the foundations upwards: evaluating business performance

Reviews and evaluates the literature concerning the evaluation of business performance and considers the reasons for such evaluation, the determinants of good performance and the interests of those concerned with evaluation. This evaluation is undertaken within a framework which recognizes the contexts within which performance evaluation is operating. Integral to this are: the context of control and the role of accounting in the recording and shaping of performance; the context of reporting and the dimensions of accountability within which the business is operating; and the context of planning and a concern for the future orientation of strategic management. Demonstrates that while existing research is extensive in the areas and criticisms discussed, it is nevertheless deficient. In particular it does not adequately consider the interaction between the different perspectives involved, while the uni‐dimensional approach adopted by the research literature fails to address the fundamental requirements of all evaluation purposes and all evaluating parties. Concludes with a proposed way forward for future research.