Beyond financial indicators: An assessment of the measurement of performance for international new ventures

• This study examines the measurement of performance for international new ventures (INVs).
• We adopt a mixed methods approach using exploratory interviews and a quantitative survey sample of 310 New Zealand and Australian firms.
• We find that INVs use a variety of international performance measures which includes financial and operational performance indicators and organisational effectiveness.
• Our study also indicates that financial performance is generally more important than operational performance for INVs.
• We also find industry-specific differences in that manufacturing INVs tend to place more importance on financial performance than service INVs.

This study examines the measurement of performance for international new ventures (INVs). While there is a growing area of literature on INVs that includes the internationalisation patterns, networks and entry strategies of these firms, there is generally a lack of research on how INVs measure their own performance. Using a sequential mixed methods approach of exploratory interviews and a survey sample of 310 firms from New Zealand and Australia, we find that INVs tend to be significantly more international performance oriented than non-INVs. Our study also indicates that financial performance measures are generally viewed as more important than operational indicators. In addition, we find that manufacturing INVs generally place more importance on financial performance than service INVs. The study offers two key contributions to the literature: (1) an integrated examination of international performance measures as used in practise by INVs, and (2) a comparative perspective between INVs and non-INVs in terms of performance measurement.