Chapter 13 Managers' Knowledge of Key Performance Indicators in Small and Medium Enterprises: Wood and Timber SMEs in Peru

The key performance indicators (KPIs) are frequently used in organizations, and they help to transmit the strategy at all levels of the organization. However, the implementation of these indicators in small- and medium-sized companies remains a challenge. Many studies reveal two challenges faced by these firms, the lack of knowledge about the KPIs and the lack of alignment of these with the business strategy. For this reason, this chapter investigated the current level of knowledge about KPIs in managers of small and medium enterprises in the wood and timber sector in Peru. The level of knowledge was measured using the framework of Bloom's Taxonomy in 21 firms. The use and importance that managers assign to performance indicators were evaluated, in order to identify gaps that exist between the strategy and its use. The results of a survey study show a high degree of variability in the knowledge of KPI-related concepts as well as an average low level of usage. The importance attributed to KPIs was seen as a necessary but not sufficient condition for attaining higher levels of KPI usage.