Abstract

The global integration and rapid applicability of supply chain concepts in manufacturing industries creates both opportunities and challenges for developing countries. The developing countries are becoming more open to adapting and accepting Western business practices. One of the important issues in this context is the use of the standard performance measurement systems. In the current literature, the capability to measure the performance of manufacturing industry operations can be seen as an important prerequisite for improvement. Companies have increased the capabilities of their performance measurement systems. The manufacturing industries in developed countries have been developed and implemented successfully multi-dimensional performance measures, and measurement systems for their business success. Whereas research results and data related to developing country's state of performance measures are very minimal. With the recent global integration and economic relevance of developing countries, we investigated the level of performance measurement systems in Ethiopian. The paper presents the existing practices in performance measures, and measurement systems based on case studies on twelve companies and questionnaire survey on thirty two companies#x2019;. A survey and case study results show that manufacturing industries still largely use financial and productivity performance measures. Despite the powerful advantages of performance measurement, it has not been widely implemented in the manufacturing industry in developing countries. The current performance measurement systems have faced different challenges what they did not encounter in developed nations companies.