This research presents an empirical study, which examines the relationship between physical asset management (PAM) practices and company's business performance. Survey data from six European countries (i.e. Greece, Poland, Slovakia, Slovenia, Sweden and Turkey) was used to test the research model. This study presents a unique and novel contribution in the field PAM. This study is based on a premise that PAM, which comprises of risk management practices, performance assessment practices, life cycle management practices, policy & strategy practices, leads to improved business performance. Results of the research provide empirical evidence that PAM practices significantly and positively contribute to business performance. Therefore, by focusing on PAM practices, organizations can expect to achieve higher performance outcomes.