The role of KPI systems in organizational performance and business excellence

Despite the widespread adoption of KPI systems, relatively little empirical evidence explains whether they simultaneously support business strategy, organizational performance, and responsiveness to environmental change. This study examines whether KPI systems function as strategic organizational capabilities linking business strategy, organizational performance, and responsiveness to changes in the business environment. Survey data were collected from 185 enterprises operating in the Czech Republic. The data were analyzed using IBM SPSS Statistics. Exploratory factor analysis (EFA) was employed to assess the psychometric properties of the measurement scales, while hierarchical regression analysis was used to examine the proposed relationships among KPI systems, business strategy, organizational performance, and organizational responsiveness. The findings provide support for all proposed hypotheses and demonstrate that the systematic use of KPI systems is positively associated with business strategy, organizational performance, and responsiveness to changes in the business environment. The strongest relationship was identified between KPI systems and business strategy, suggesting that the strategic value of KPI systems lies not only in monitoring organizational performance but also in facilitating strategic alignment, managerial learning, and adaptive decision-making. The findings also provide practical guidance for managers seeking to design adaptive performance management systems that strengthen organizational resilience and continuous improvement.