Evolving Performance Management Systems in Public Sector Networks: A Longitudinal Case Study of The World Largest Public Network Supporting Smes

<ns3:p>Background Performance management systems (PMS) in public sector networks face unique challenges due to distributed governance, heterogeneous actors, and evolving policy priorities. While collaborative networks are increasingly central to policy implementation, little is known about how PMS evolve in such settings. This paper investigates the longitudinal evolution of the Enterprise Europe Network (EEN)—the world’s largest public network supporting small and medium enterprises (SMEs)—over fifteen years, offering new insights into PMS as socio-technical systems. Methods The study employs a qualitative, longitudinal single-case design, using abductive reasoning. Data collection combined extensive archival analysis (calls for proposals, grant agreements, evaluation reports, coordination artefacts) with direct observation of network routines and governance arenas. Coding was conducted in iterative stages—open, axial, and selective—to identify recurrent dynamics, triggers of PMS change, and building blocks of system evolution. Results Findings reveal that the EEN’s PMS evolved through five phases, shifting from activity/output-based reporting to a client-journey logic that captures SME achievements, impact, and cross-consortia contributions. Evolution occurred in episodic cycles rather than continuous adaptation, with contractual boundaries fixing indicators within multiannual programmes. Redesign was triggered by external forces and enacted through governance arenas. A generic three-layer framework is developed, comprising contextual triggers, lifecycle phases, and building blocks. Conclusions The study demonstrates that PMS in public sector networks evolve as socio-technical systems shaped by external triggers, bounded lifecycles, and building blocks. This reframes PMS not as static indicator sets nor as continuously adaptive systems, but as episodic, governed design processes that balance accountability, collaboration, and learning. The proposed framework is transferable to other public sector networks and provides actionable guidance for policymakers and managers seeking to design performance systems that capture the value of coordination and co-production in complex, multi-actor environments.</ns3:p>