The study was conducted by Siti Mahmudah from Politeknik NSC Surabaya, together with Tri Siwi Agustina of Universitas Airlangga and Moch Aminudin Hadi from Universitas Riau. Published in 2026, the research highlights how adaptive performance management has become a strategic response for startups operating in fast-changing digital environments.
At a time when startups face intense pressure to innovate while managing limited resources, the findings matter because they show how human resource practices can directly support organizational agility and employee readiness for change.
Why performance management matters in the digital era
Digital transformation has reshaped how work is organized, measured, and evaluated. Traditional performance appraisals—often conducted annually and focused on rigid targets—struggle to keep pace with rapid changes in technology and market demands.
This challenge is especially acute for technology-based startups. In regions such as East Java, startups operate in an ecosystem supported by universities, industrial zones, and business incubators, but they also face uncertainty, frequent system updates, and evolving client expectations. When performance management systems fail to adapt, innovation slows and employee engagement can decline.
Against this backdrop, adaptive performance management has emerged as a practical solution. Instead of fixed annual targets, this approach emphasizes flexibility, continuous feedback, and alignment with ongoing technological change.
How the research was carried out
The research used a qualitative case study approach, focusing on three technology-based startup companies in East Java. Data were collected through in-depth interviews with 12 informants, including founders, managers, team leaders, and core employees. The interviews were supported by document analysis and limited workplace observations.
Rather than relying on numerical surveys, the researchers analyzed patterns and themes in participants’ experiences. This approach made it possible to capture how performance management actually works in daily startup operations, where processes are often informal, fast-moving, and highly contextual.
Key findings from East Java startups
The study identified four core practices that define adaptive performance management in the startups examined:
· Flexible goal setting Work targets are set in short cycles, often linked to projects or work sprints. Goals are adjusted whenever technology or client requirements change, allowing teams to stay realistic and focused.
· Continuous feedback instead of annual reviews Performance evaluation happens through ongoing conversations rather than formal yearly appraisals. Feedback is given quickly and directly, helping employees adjust their work as soon as changes occur.
· Use of digital platforms for real-time monitoring Startups rely on digital work platforms to track progress, assign tasks, and evaluate performance. Contributions are assessed based on actual output visible in the system, not on physical presence or administrative reports.
· Direct leadership involvement Founders and managers are closely involved in performance discussions and target adjustments. This hands-on leadership approach helps teams adapt more confidently to new technologies.
According to the researchers, these practices work together as a single system rather than as isolated tools.
What this means for organizational agility
The findings show that adaptive performance management plays a key role in strengthening organizational agility—the ability to respond quickly and effectively to change.
Employees reported feeling better prepared for technological shifts because expectations are updated regularly and communicated clearly. Managers noted that teams are less resistant to change because adaptation is already embedded in everyday work practices.
As Siti Mahmudah of Politeknik NSC Surabaya explains, adaptive performance management allows startups to remain focused on results without being constrained by outdated evaluation systems. In ethical paraphrase of the authors’ analysis, the study highlights that flexible targets, continuous feedback, and digital monitoring help align employee performance with rapidly evolving technologies while maintaining organizational stability.
Real-world impact for startups and policymakers
For startup founders and human resource managers, the study offers practical guidance. Designing performance systems that emphasize flexibility and real-time feedback can improve employee engagement and reduce stress during periods of rapid change.
The findings are also relevant for policymakers and business incubators supporting startup ecosystems. Training programs and HR guidelines that promote adaptive performance management could help startups scale more sustainably.
In education, the results underline the importance of preparing future managers with skills in digital HR systems and adaptive leadership, rather than traditional appraisal methods alone.
Author profiles
- Siti Mahmudah. Lecturer at Politeknik NSC Surabaya. Her expertise focuses on human resource management and organizational performance in digital and startup environments.
- Tri Siwi Agustina. Academic at Universitas Airlangga, specializing in strategic human resource management and organizational behavior.
- Moch Aminudin Hadi. Lecturer at Universitas Riau with research interests in management systems, organizational agility, and performance evaluation.
Source
Mahmudah, S., Agustina, T. S., & Hadi, M. A.
Adaptive Performance Management Practices in Responding to Rapid Technological Change within Startup Companies Formosa Journal of Science and Technology,
Vol. 5, No. 1, 2026
DOI: 10.55927/fjst.v5i1.364
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