MEASUREMENT DESIGN FOR SME’S BUSINESS PERFORMANCE IN BANGKOK

Abstract

This research study is dedicated to measurement design for SMEs business performance in Bangkok. The objective was to create some sort of a metrics for assessing the performance of SMEs in Bangkok. This is a documentary research since it is using secondary data. Analysis and synthesis methods were used in relation to the obtained information so that to come up with a measurement of business performance for SMEs operating in the city of Bangkok. Our research results found that the innovation management model of SMEs is usually composed of 3 structural elements: 1. Finance, 2. Customers, and 3. Stakeholders. Further, 1. The structural element of Finance is composed of the following indicators: 1). Growth revealed through increased sales, market share, profit growth; 2) Return, namely 2.1) Return on assets, 2.2) Return rate for shareholders, 2.3). Average return on sale, and 3) Cash flow as 3.1) Net cash flow, 3.2) Cash flow from sales, 3.3) Inventory turnover. 2. The structural element called Customer is measured through the following indicators: 2.1) Satisfaction of customers with product delivery meeting Terms and Conditions of agreements, 2.2) Satisfaction of customers with a company as compared to competitors, 2.3) Satisfaction of customers with competitive position this company has already received. 3.The structural element of Stakeholder is measured through the following indicators and their parameters: 3.1) Employees and how they are satisfied with returns, 3.2) Return on investment and returns for shareholders when compared to the previous 3-year period, 3.3) Service quality in its dynamics, 3.4) Number of third parties (distributors) involved and how it increases with every new year, 3.5) Activities’ arrangements as responding to society’s or community’s needs, including company’s environmental responsibility.