The purpose of this study is to investigate the uses of performance measures in startup firms, including perceived importance and performance of those measures.
The survey method is used in this study. Data are collected from founders/chief executive officers/managers of 110 startups in Thailand. The correlation analysis and analysis of variance techniques are used as the analysis tool in this study.
The results show that there is a positive relationship between the perceived importance and the performance of each metric. However, no significant differences are found in the importance and performance of each metric among the various stages of startups.
Because there are so few startups compared to large corporations, the sample size of this study is relatively small, which is a limitation for some statistical tests.
Startup should measure and monitor the correct metrics in a particular stage, instead of trying to perform well in all areas, which will lead them to lose focus, and possibly even fail. Results obtained from this study will aid startups in properly monitoring and managing their performance.
Unlike large corporations, the performance measures used by startups vary, and depend on a startup’s stage and type. Because of the fact that there are much fewer startups than large corporations, there are a limited number of studies in this area. This research is among the first studies that try to investigate the uses of performance measure for this new type of organizations.
