The rising popularity of performance management systems (PMSs) as a means of navigating the uncertain competitive landscape shaped by the ongoing impact of the COVID-19 pandemic and the recent economic crises and armed conflicts is a well-documented phenomenon in the field of managerial studies. A substantial body of research has been dedicated to examining the role of PMSs in facilitating decision-making processes, strategy implementation, and management efficiency within large organizations. However, a clear discrepancy exists between theoretical and practical perspectives on the implementation and utilization of PMSs in medium, small, and micro-enterprises. This article relies on 26 in-depth interviews with entrepreneurs and accountants involved in performance assessment in medium, small and micro-enterprises in Italy. The results demonstrate that the unprecedented levels of uncertainty brought about by the advent of the COVID-19 and the subsequent periods of economic crisis have stimulated a more intense and comprehensive use of PMSs among medium and small enterprises. In contrast, micro-enterprises have not been affected in their reconsideration of performance monitoring. This work aims to provide scholars, managers, financial advisors, and consultants with a more precise overview of PMS in small and micro enterprises. It also strives to complement the limited number of studies on this topic by providing valuable theoretical and practical implications that both scholars and practitioners can leverage. Additionally, future research avenues are provided.
Keywords: Performance management systems, MSMEs, Small and micro enterprises, Multiple case study, Micro business.
