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Economic Analysis: Theory and Practice

Analyzing the development of approaches to company performance measurement

Vol. 19, Iss. 6, JUNE 2020

Received: 13 April 2020

Received in revised form: 23 April 2020

Accepted: 5 May 2020

Available online: 29 June 2020

Subject Heading: SCHOLAR DISPUTE

JEL Classification: B40, G30, L20

Pages: 11731188


Kogan A.B. Novosibirsk State University of Architecture and Civil Engineering (Sibstrin), Novosibirsk, Russian Federation


Pristavka A.N. Novosibirsk State University of Economics and Management (NSUEM), Novosibirsk, Russian Federation


Subject. The article presents various definitions of the efficiency concept, their changes as the economic science evolves, and describes various methods to measure company performance efficiency, ranging from a simple set of financial indicators to comprehensive systems for effectiveness evaluation.
Objectives. The purpose of the study is to systematize the said definitions and identify a category that will meet the current condition of business environment.
Methods. The study rests on the retrospective and comparative analysis of interpretations of the efficiency concept in the economic science. We also employ the historical and logical methods of general theoretical research.
Results. We identify three approaches to the interpretation of the efficiency concept. Within the selected approaches, we consider the main methods for company performance measurement that have emerged since 1914. The paper formulates criteria, which were used to carry out the comparative analysis of these methods. The analysis enabled to trace all changes in the methods.
Conclusions. We propose to use the term Integrated Company Efficiency and to develop methodological framework for measuring the comprehensive efficiency of companies operating in various industries.

Keywords: efficiency, effectiveness, performance evaluation method, performance measurement


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