The Use of Financial and Non-Financial Measures in Decision-Making Process of Enterprises Performance in a Transition Economy

The purpose of this research was to explore whether performance measure utilization has an influence on business decision-making for enterprises of transitional economies. Both the benefits of financial and non-financial indicators are investigated, as well as their impact on the decision-making process. The research is based on enterprise performance in industries in Croatia. The aim of the research was to prove the importance of performance measurement for results and goals realization, especially in enterprises of transitional economies where competitiveness in today's global economy is more difficult. Recently, performance measurement has become a prerequisite for goal achievement where the need for a holistic approach to enterprise performance and the use of appropriate analytical methods is evident. When measuring creditworthiness and risks of enterprise performance equal significance is given to financial and non-financial data. Modern methods, e.g., Sustainability Balanced Scorecard, are adjusted for these factors. Therefore, the primary purpose of this research was to investigate whether or to what degree decisions are based on both financial and non-financial internal and external information, and if their utilization has an impact on an enterprise's business success. Analytical and statistical methods as well as a questionnaire are used.