Performance measurement and costing system in new enterprise

In this paper, we describe a framework for measuring costs and performance in new forms of business organization that are evolving to meet the competitive challenges of the 21st century. A literature review on cost management and performance measures in advanced manufacturing and service organizations provides the basis for our framework. The framework emphasizes measurement of costs and performance in the virtual enterprise and along the supply chain to enhance competitiveness in global markets. Investing in knowledge capital and information technology plays an important role in improving organizational competitiveness in the 21st century, yet the measurement of performance in these important areas is at best, imprecise. Managing and controlling costs and performance in new forms of organization poses challenges. We hope this article will encourage research that will help practitioners meet the challenges of performance measurement in the 21st century. q 2003 Elsevier Ltd. All rights reserved.