2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 nd ICBER 2011) PROCEEDING 2660 THE CRITICAL SUCCESS FACTORS OF PERFORMANCE MEASUREMENT FOR MALAYSIAN SMES IN MANUFACTURING SECTORS: A PROPOSED FRAMEWORK Farhad Sanjari Fard and Nur Naha Abu Mansor Faculty of Management and Human Resource Development University Teknologi Malaysia E-mail: nurnaha@utm.my Off: +607-5531842 Fax: +607-5566911 Azzman Mohamed Iskandar Development Management Services Johor Bahru, Malaysia Abstract This paper aims is to investigate the critical success factors (CSF) for measuring (PM) in quality context in Malaysian SMEs in the manufacturing sectors for removing and decreasing the shortcomings and non-preciseness to the minimum rate. In most countries, 95% of businesses that are established are SMEs. In Malaysia, SMEs have the important role in the economy for establishing more than 99.2% of the business community. Managerial system models like quality management systems (QMS) are used for improving performance and promoting productivity to achieve organizational goals. Performance measurement (PM) is one of the principal functions of organizations to show to what extent the organization has achieved in their pre-designed strategies and goals. The outcome of this paper will provide detailed review of CSF for organizations to consider when implementing quality measurements in a framework approach based on an extensive review of PM literature within the various quality management systems adopted worldwide. Keywords: quality management, performance measurement, critical success factors, small and medium enterprise.