Critical Review of Multidimensional Organizational Performance Measurement Models in Construction

Organizational performance is a critical metric for evaluating business success, yet measuring it in construction organizations poses significant challenges due to the industry's inherent complexities, such as its fragmented, project-based structure. Researchers have developed various performance measurement models to address these challenges, including Key Performance Indicators (KPIs), the Balanced Scorecard (BSC), and the European Foundation for Quality Management (EFQM) framework. Despite the widespread use of these models, their application (in what contexts) and integrative use (how they are used together) remain underexplored in construction studies. This study addresses this gap by examining how KPIs, BSC, and EFQM have been applied in construction research and proposing better ways to utilize them. To achieve this, this study critically reviews the literature on the empirical studies on KPIs, BSC, and EFQM within the construction context, focusing on each model’s characteristics, their practical applications, and opportunities for integrated use. The findings indicate that KPIs, being flexible and quantifiable, are well-suited for targeting specific organizational traits, while the EFQM model, with its formalized structure, is more appropriate for benchmarking across companies. Positioned between these two, the BSC offers a balance of flexibility and structure, contributing to its broader adoption compared to EFQM. KPIs, explicitly or implicitly used in all reviewed studies, are often tailored to firms’ unique needs, ensuring relevance. Previous studies lack strategic management insights and actionable improvement criteria, highlighting the need for future research to provide concrete strategies aligned with performance goals to offer practical guidance for improving performance in construction.