A performance measurement system for the R&D activities in the software sector

Edibe Beste Ersoyak, Sercan Ozcan

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    R&D activities in the software sector have a key role as they lead to sustainability of the sector and rapid development activities with shorter cycles. The importance of R&D activities in this sector requires an effective performance measurement system for the companies to evaluate the performance of R&D activities. Hence, this study aims to establish a performance measurement system that is applicable to the software industry. The study consists of a sequential mixed method where first key performance indicators, drawn from preliminary interviews and then the data from 2012 to 2016 are collected and analyzed. The results are interpreted by conducting in-depth interviews with the performance management department. This study uses various performance indicators for the R&D oriented sectors combining them with the new KPIs that are specific to the software sector. The implemented method is used to rank the performance of a software company effectively. The study offers many performance-oriented interrelationships between financial, innovation, education, customer-oriented and organizational factors. The study also offers interesting findings, related to the quality versus quantity measures indicating highly qualified employees leading to a higher quality levels in research and patent applications rather than higher number of outputs.
    Original languageEnglish
    Pages (from-to)242-272
    Number of pages31
    JournalInternational Journal of Technology Intelligence and Planning
    Issue number3
    Early online date16 Apr 2019
    Publication statusPublished - 30 Sept 2019


    • R&D Management
    • Performance Management
    • Software Sector
    • Performance Measurement


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