Is performance management applicable in developing countries? The case of a Tanzanian college

Developing countries offer potentially some of the most important growth opportunities for companies both from the developing as the developed world. It is therefore interesting to note that a recent review of the last twenty years of empirical research grounded in institutional theory found that most studies focused on developed countries (95 percent) and that only a small portion (five percent) of the studies tried to test institutional theory in developing countries (Farashahi et al., 2005). As a result, there has been little structural research on institutional effect and change in emerging countries which is surprising because many of these countries offer a highly dynamic environment which is a good testing ground for new theory, techniques and concepts of business and management (Hofstede, 2001; Pacek and Thorniley, 2004). It has to be noted that quite a few scholars doubt whether existing Western management practices can and will work in emerging markets, and it has long been recognised that culture is a major source of differences in measurement and reporting standards and methods (Daniels et al., 2004; Piercy et al., 2004). At the same time, interest in this type of research is increasing as developing and developed countries alike start to realise that the study results can be important input in development policies to reduce poverty (Hopper et al., 2003).