Performance Measurement in Small Motels in Australia: (Funded by the Sustainable Tourism Co-operative Research Centre)

Abstract

This research explores the measurement of performance in small motels. There are many challenges facing business performance management in small firms. Most of these challenges are due to resource shortages, lack of functional expertise and environmental instability. Of major importance to firm survival is the small enterprise owner-manager's ability to monitor the operations performance. Key components of the monitoring process include the ability to identify key performance indicators to track results as well as an understanding of the most suitable measures to use. Specifically, the study focuses on identifying the key constructs of performance for small firms that include the key components of drivers and results. The specific monitoring and measurement activities of small motel owner-operators were identified using a case research approach. The findings of the study indicate that those owner-managers who operate successful motels employ a balanced approach to performance measurement by utilising a small number of key measures to monitor results and to review management activities.