The improvement of business performance through coaching interventions: an empirical investigation in SMEs

Purpose – Improving business performance is a never-ending issue for companies and, in particular, for small and medium enterprises (SMEs). Striving for that, in recent years, coaching has got new attention within the organizational context. Coaching represents a tool for enhancing individual potential and improving management practices. However, the effectiveness of coaching in improving business performance is still not proven. This research, thus, aims to explore the relationship between business performance and coaching in SMEs moderated by performance measurement and management (PMM) practices. PMM, indeed, is recognized as a key factor in sustaining business performance through advanced measurement systems and performance management practices. Design/methodology/approach – Through the qualitative research method and semistructured interviews, this study focused on four SMEs to achieve the research goal. Findings – The analysis reveals that coaching supports the improvement of seven PMM practices, among which are communication and teamworking, while it has an indirect impact (i.e. it does not act directly on changing these practices) on the definition of organizational roles and the development of career paths. For instance, it supports the definition of team goals and the scheduling of team activities, while it develops awareness of the importance of having clear organizational roles. Originality/value – This paper explores the existing but latent relationship between coaching and business performance in SMEs through the moderating role of PMM. This leads the research to a further insight. Coaching supports the change in PMM practices and indirectly drives a change in others.