Performance Evaluation Measurement System in Micro Enterprices in the Gulf Cooperation Council Countries

Purpose: This study is the first attempt to explore in any great depth the performance evaluation system generated and used in micro (less than 10 employees) enterprises in the Gulf cooperation council countries. Methodology: A grounded theory approach is used with case studies being the main research method. Findings: Three main themes emerged during the ten case studies. Firstly, why is the generation and use of performance measures (PMs) related to the owner/manager (O/M)? Secondly, what are the organizational and environmental conditions affecting the use of PMs? Thirdly, what are the management strategies for generating and using PMs? Forth, what are the consequences for using such PMs? From the ten case studies 133 substantive hypotheses emerged and then a cross-case analysis generated 23 formal hypotheses. Research Limitations: The case studies excluded micro enterprises less than three years old, micro enterprises with more than one O/M and micro enterprises from sectors other