Performance Measurement Systems in Tanzanian Tourism SMEs: An Integrated Mixed-Methods Study

Abstract

This research examines how performance measurement systems are utilized by small and medium-sized enterprises (SMEs) in Tanzania’s tourism sector, particularly within the accommodation subsector. The study focused on three objectives: 1) analyzing the impact of factors such as environmental uncertainty, ethnic ownership, business size, and strategic orientation on the use of performance measurement systems; 2) investigating the methods these SMEs use to implement these systems; and 3) exploring how these systems influence key organizational capabilities like resource teaming, strong routines, entrepreneurial spirit, and innovativeness as well as overall performance. A mixed-methods approach was employed, utilising semi-structured interviews and surveys, with analysis conducted using NVivo software and Structural Equation Modelling (PLS method). The findings showed that the contextual factors significantly influenced the adoption of performance measurement systems and their relationship with organizational performance through enhanced capabilities. This research provides valuable insights to the management accounting literature, particularly for SMEs in developing nations, and offers practical recommendations for business management and policymaking to support SME growth in the tourism sector.