Short- and Long-Term Performance in Manufacturing Smes: Different Targets, Different Drivers

Contrary to popular belief, managing short‐term performance differs significantly from managing long‐term performance. It is not an extension of short‐term performance over a longer‐term time frame. This paper examines the steps of managing performance from the context of organisational factors. The analysis indicates a dramatic picture as the improvement of short and long‐term performance is driven by distinctly different attributes of strategy, leadership, culture and organisational capability. The difference in all cases indicates that attributes that are perceived as “internally orientated” are associated with improving short‐term performance, whereas attributes that are commonly perceived as “externally orientated” are associated with improving long‐term performance. These findings will be helpful to managers focusing on improving their firm's performance in the short or long term and enable them to focus on the attributes of each of the factors examined that help the achievement of the performance targets set.