The literature emphasizes the important role performance measurement systems
(PMS) play in supporting organizational development in small and medium enterprises
(SMEs). However, there are few field studies either on the performance measurement
practices in SMEs or the using of qualitative method on this topic. This paper aims to
contribute to filling these gaps.
A qualitative research design involving a case study methodology was carried out
to investigate how the social construction on performance measurement system in
Mubarokfood, an SME using Kudus’ society cultural sphere.
It is claimed in this study that ontologically PMS practice is a socially
constructed reality. PMS, in the sense of such a reality, is seen as a collaborative process
involving local culture, society and powerful actors. By using Mubarokfood as a research
setting, it can be concluded that the SME is committed to PMS because such practice is
important for the company to gain legitimacy and to maintain social harmony. Weber’s
concept about disenchantment of the world was irrelevant as a perspective for watching
Mubarokfood. Mubarokfood which is running to rationalization, develop new pattern in
its spiritual aura, i.e. doing spiritual rationalization. It means there is no disconnection
between spiritual and rational world.