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

## TL;DR

This study examines how performance management systems in a large public network for SMEs evolved over 15 years, showing they change in cycles rather than continuously.

## Contribution

The paper introduces a three-layer framework explaining how public sector network performance systems evolve through episodic redesigns.

## Key findings

- The EEN’s PMS evolved from activity/output-based reporting to a client-journey logic capturing SME achievements and impact.
- PMS evolution occurred in episodic cycles linked to EU policy and funding periods, not continuous adaptation.
- A three-layer framework was developed to explain PMS evolution in public sector networks.

## Abstract

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.

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.

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.

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.

Public sector networks supporting small and medium enterprises bring together many organisations across countries to provide advice, training, and partnership opportunities. However, measuring how well such large and complex networks perform is not straightforward. Traditional performance systems that work in single organisations are not sufficient when outcomes depend on the collaboration of many partners. This study looks at the world’s largest public network supporting SMEs, active in more than 40 countries for over 15 years. Using official documents and direct observations, we traced how the network’s performance management system changed over time. We found that it evolved from simply counting activities (like events and contacts) to following SMEs along their “client journey”, tracking achievements and long-term business impacts such as new partnerships, innovation, and market growth. The research shows that these systems do not change continuously but in cycles, usually linked to EU policy and funding periods. Each cycle brings redesigns based on evaluations, new tools, or stakeholder feedback. We developed a framework to explain this process.