scholarly journals The unfolding rationales surrounding management accounting innovations: a balanced scorecard case

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudio de Araujo Wanderley ◽  
John Cullen ◽  
Mathew Tsamenyi
Keyword(s):  
Balanced Scorecard ◽  
Structural Changes ◽  
Management Accounting ◽  
Empirical Support ◽  
Boundary Object ◽  
Electricity Distribution ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Focal Firm ◽  
Distribution Company

PurposeThe Balanced Scorecard (BSC) possesses an inherent duality, as it has been described as a carrier of institutions (i.e. the BSC is a “management ideology” or “mode of thinking”) and a flexibly interpretive boundary object at the same time. This study examines how this inherent duality of the BSC may influence the unfolding rationales surrounding its implementation and use.Design/methodology/approachEmpirical support for this investigation is gathered from an in-depth field study. The focal firm is a Brazilian electricity distribution company that transitioned from state to private ownership under hyper-regulation, and whose holding company experienced strategic and structural changes.FindingsThe study identified a misalignment between the characteristics of the firm (e.g. organizational logics) and the perceived BSC features. This misalignment initially produced tensions and institutional logics complexity for the organization forcing the BSC implementers to rationalize it to provide meaning regarding its implementation in the firm. The findings also show why and how the promoters of the BSC conducted its “strategy of translation” in order to disentangle and reassemble both the material and symbolic components of the BSC to facilitate its implementation and use. It was found that promoters of the BSC engaged in contextualization work, which featured two main actions: a combination of coupling and selective decoupling and a change of meaning.Originality/valueThis paper advances current understanding of the process of the unfolding rationales surrounding management accounting innovations (e.g. the BSC). The study shows that the BSC unfolds in more complex, time-related and simultaneous ways than has previously been reported in the literature. Moreover, the paper contributes by explaining how the management's rationales, relating to their historical understanding, perception of legitimation needs and social skills, contributed to the continuous unfolding of the BSC. In addition, four potentially interesting areas for further research were identified.

scholarly journals A gap in management accounting education: fact or fiction

2017 ◽  
Vol 29 (1) ◽  
pp. 107-126 ◽  
Author(s):  
Vida Lucia Botes ◽  
Umesh Sharma
Keyword(s):  
Balanced Scorecard ◽  
Management Accounting ◽  
Tertiary Education ◽  
Accounting Education ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Management Accountants ◽  
Customer Perspective ◽  
Overall Performance ◽  
Management Accounting Education

Purpose The aim of this paper is to gain insights into the gap that persists between management accounting education (MAE) and practice. Design/methodology/approach MAE is examined from four perspectives of the balanced scorecard (BSC), in terms of what is being taught at tertiary level: customer satisfaction, learning and growth, internal business and financial. A survey questionnaire was sent to management accountants selected randomly from a list of practicing management accountants identified by the Chartered Institute of Management Accountants in South Africa. Findings The study finds support for allegations that a gap exists between MAE and practice and indicates that to address this gap, a holistic focus using the four perspectives of the BSC would be useful to investigate the gap. Research limitations/implications Previous studies in relation to the gap in management education have focused on the lack of skills provided by tertiary education. As one of the few studies to focus on the overall performance of MAE, this study identifies that the gap is not limited to the provision of adequate skills. The findings show that the gap is significant in terms of customer perspective but is not significant in relation to the internal business, learning and growth and financial perspectives of the BSC. The study provides deeper insights into the gap and will help tertiary education providers to improve their performance. Practical implications As one of the few studies on gaps between MAE and practice, the study provides insights to the potential gaps. The findings serve as a basis for further empirical and theoretical enquiries. Originality/value The study contributes to the management accounting literature by focusing on the gap in MAE using a BSC approach. Rather than single out the lack of skills provided by MAE as a reason for the gap, this paper provides information on the four areas of the BSC as ways to identify the gap.

The fate of the balanced scorecard: alternative problematization and competing networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tharusha N. Gooneratne ◽  
Zahirul Hoque
Keyword(s):  
Control Systems ◽  
Balanced Scorecard ◽  
Actor Network Theory ◽  
Management Control ◽  
Sri Lankan ◽  
Specific System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Study Approach ◽  
System Data

Purpose This paper aims to report on an empirical investigation of the fate of the balanced scorecard (BSC) approach in an organization. Design/methodology/approach Building on actor-network theory and using a qualitative case study approach, this study analyses how across time certain actors attempted to build a competing network in the organization to gain support for their underlying rationales for replacing the BSC with a budgeting system. Data were collected using interviews, observations and archival data from a Sri Lankan commercial bank. Findings This paper finds that despite the enthusiastic journey with all its potentials to be a sustainable accounting innovation, the attraction towards the BSC innovation by the organization appeared to be temporary because the BSC knowledge claims that were advanced by its promoters had not been widely accepted by those involved in the practice. Such a consequence of innovation diffusion appeared to be the result of the failure of the innovation promoters in coordinating the heterogeneous interests of various actors involved in the practice. This study concludes that the BSC failed to be sustained, amid varying ideologies and interests of powerful actors across time and opponent actors’ perceived deficiencies in its adapted design attributes. Research limitations/implications Although the findings relate to a Sri Lankan case, they offer important insight into how parallel, competing networks advocating different control systems may exist in an organization, and that the sustainability of a specific system may depend upon the efforts and the relative power of the advocators of that system. Practical implications This paper sheds useful insights for practitioners on the effective implementation of accounting innovations and managing management control systems in organizations amid tensions associated with competing networks. Originality/value The outcomes enhance the knowledge of how multiple networks operating in an organization could compete with one another, with the result that one network may fall apart while another network gains prominence in the corporate landscape across time, amid varying interests of key actors, their actions and interessement devices used.

Institutional contradiction and BSC implementation: comparative organizational analysis

2019 ◽  
Vol 27 (3) ◽  
pp. 414-440 ◽  
Author(s):  
Nizar Mohammad Alsharari ◽  
Riyad Eid ◽  
Ali Assiri
Keyword(s):  
Balanced Scorecard ◽  
Relevant Literature ◽  
Implementation Process ◽  
Successful Implementation ◽  
Organizational Analysis ◽  
Accounting Systems ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Exploratory Investigation ◽  
Dialectical Perspective

Purpose This paper aims to explain institutional contradictions in the balanced scorecard (BSC) implementation process between organizations, which successfully implemented BSC. The purpose of this paper is to identify a comprehensive set of potential determinants influencing the successful implementation of BSC. Design/methodology/approach This study is an exploratory investigation into the BSC implementation based on a dialectical perspective. It uses the triangulation of data collection including interviews, documents and surveys. This also includes a comprehensive scrutiny of the relevant literature; a comprehensive analysis of case studies of BSC implementations in four organizations; and interviews and documents evidences that have already implemented or are in the process of implementing BSC. Findings The BSC was successfully implemented in the organizations, when the accounting systems introduced in these organization had already been institutionalized, that is, accepted and used on day-to-day basis. The dialectical perspective postulates that for change to become institutionalized in the organization, it needs to overcome the problem of embedded agency. This process of change is possible due to the accumulation of institutional contradiction that enables human praxis to introduce change (Seo and Creed, 2002). Research limitations/implications There is a need to empirically test and refine the proposed factors and explore relationships among the various variables by collecting data from organizations that have already implemented BSC. Practical implications The findings of this study are important and relevant to all the different-sized organizations in the different sectors and industries. This study also makes a significant contribution to society in general. Originality/value This paper contributes to the literature on organizational and accounting change that emphasis the crucial role that institutional contradiction plays in the process of BSC implementation. The findings of this study will help management in making crucial decisions and in resource allocations that are required to make the BSC implementation a success.

scholarly journals Implementation of management accounting in the system of economic monitoring of activities in the context of globalization

2020 ◽  
Vol 7 (12) ◽  
pp. 97-104
Author(s):  
Д. В. Адамов ◽  
М. А. Юхненко ◽  
Є. Р. Богдяж
Keyword(s):  
Balanced Scorecard ◽  
Management Accounting ◽  
Evolutionary Development ◽  
Accounting System ◽  
Managerial Accounting ◽  
Accounting Systems ◽  
Accounting Information Systems ◽  
The Balanced Scorecard ◽  
Independent Analysis ◽  
Legislative Framework

The article deals with the problems that arise during the implementation of the concept of modern management accounting for Ukrainian enterprises by introducing new accounting systems and developing approaches to accounting and information generalization of transaction costs in order to effectively manage them in the globalized economy. The existing system of introduction of management accounting at enterprises is examined and the introduction of management accounting on foreign examples is considered, namely the balanced system of indicators, which is already actively used abroad and is just beginning its development in Ukraine. The research of this topic is related to the change of accounting information systems in modern conditions and the need to create a global accounting system, and adjustments are made to management accounting functions. The article compares and defines the distinctive features of accounting, and its composition of financial, tax and management accounting. A clear algorithm for the construction of this system at the enterprise and indicators that must be calculated for a complete and independent analysis of the work of the enterprise are distinguished and described. The ambiguous interpretation of the concept of managerial accounting in the course of its evolutionary development has led to the study of this topic. The article presents a system of metrics that are calculated within the Balanced Scorecard system used by the enterprise. The problems of implementing a balanced scorecard based on the experience of corporations already using the system are also discussed. The lack of legal and legislative framework to stimulate and encourage the introduction of this concept into the practice of management accounting in Ukraine leads to the unsatisfactory functioning of this system. According to the results of the research, the recommendations on the introduction of management accounting in the system of economic monitoring of activity in the conditions of globalization are given.

scholarly journals Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Francisco Frederico ◽  
Jose Arturo Garza-Reyes ◽  
Anil Kumar ◽  
Vikas Kumar
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Industry 4.0 ◽  
Theoretical Perspective ◽  
Performance Measurement System ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Performance Measurement Systems

PurposeThe purpose of this paper is to present a theoretical approach based on the balanced scorecard (BSC) with regard to performance measurement – PM in supply chains for the Industry 4.0 era.Design/methodology/approachThis paper combines the literature of PM and specifically the BSC with the literature related to the dimensions of supply chain in the context of Industry 4.0.FindingsDimensions extracted from the literature based on supply chains within the context of Industry 4.0 showed a strong alignment with the four perspectives of the BSC, which make it suitable to be considered as a performance measurement system (PMS) for supply chains in this new context.Research limitations/implicationsFrom theoretical perspective, this study contributes to the limited literature on PM for supply chains in Industry 4.0 era. The study proposes a supply chain 4.0 Scorecard and strongly support researchers to conduct future empirical researches in order to get a deeper understanding about PM in supply chains in the Industry 4.0 era. As limitations, the theoretical framework proposed needs further empirical research in other to validate it and obtain new insights over the investigation conducted and presented into this paper.Practical implicationsPractitioners can use this study as a guide to develop more effective performance measurement systems – PMSs in their organizations.Originality/valueThis research is unique as it addresses a significant knowledge gap related to PM in supply chains in the Industry 4.0 era. It brings a significant contribution in terms of understanding how to measure performance in supply chains in this new era.

Exploring integrated reporting in the banking industry: the multiple capitals approach

2019 ◽  
Vol 20 (1) ◽  
pp. 165-188 ◽  
Author(s):  
Federica Doni ◽  
Mikkel Larsen ◽  
Silvio Bianchi Martini ◽  
Antonio Corvino
Keyword(s):  
Balanced Scorecard ◽  
Banking Industry ◽  
Natural Capital ◽  
Balance Sheet ◽  
Innovative Approach ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Trade Offs

Purpose The purpose of this paper is to investigate the engagement with integrated reporting (IR) of the Development Bank of Singapore (DBS), as one of the banks that pioneered IR. Banking industry members face critical sector-specific issues regarding the use of capitals, especially the disclosure of relational and natural capital-related information, and reporting of the outcomes of capitals. This study examines an innovative approach to accounting for multiple capitals adopted by DBS during its journey toward IR. Design/methodology/approach This empirical research follows the case study method, using semi-structured interviews with DBS’s managers, and analyzing reports and other documentation. Findings The authors find that DBS re-conceptualizes, re-categorizes and measures multiple capitals as a form of non-financial value using the balance sheet approach to make visible the interactions and potential tensions (trade-offs) among capitals. Research limitations/implications Case studies are best used to understand a specific context, so the findings of this study cannot be generalized statistically. However, the study does provide insights into the banking industry that may be applicable to other organizations. Practical implications The categorization and reporting of multiple capitals using the balance sheet approach and the integration of the balanced scorecard are innovative operationalizations of the International <IR> Framework. Originality/value This study provides an innovative approach to the categorization and measurement of multiple capitals. It represents a step toward reducing the gap between research and practice on IR.

Strategy maps: the essential link between the balanced scorecard and action

2015 ◽  
Vol 36 (2) ◽  
pp. 34-40 ◽  
Author(s):  
Rainer Lueg
Keyword(s):  
Balanced Scorecard ◽  
Strategy Execution ◽  
Content Type ◽  
Strategy Maps ◽  
The Balanced Scorecard ◽  
Top Managers ◽  
Action Strategy ◽  
Recent Developments ◽  
Balanced Scorecards ◽  
Strategy Map

Purpose – The purpose of this paper is to show how the use of Strategy Maps substantially improves the implementation success of balanced scorecards (BSC). The BSC is supposed to translate strategy into action. Strategy maps support this by showing cause-and-effect chains. But what does this mean for strategy execution in practice? To achieve better BSC implementations, the author uncovers pitfalls and names the remedies. Design/methodology/approach – The author summarizes the most important findings from initially over 1,000 studies that have dealt with the BSC from 1992 to 2012. Findings – BSC implementations that use a sophisticated Strategy Map appear to be successful. Strategy maps foster a better understanding of the BSC among employees, create greater commitment and less resistance and are superior to the BSC itself in communicating how to achieve strategic goals. Also, strategy maps facilitate managers’ evaluation of the relevant environment. Nevertheless, the common measure bias is a usual pitfall: top managers have a tendency to use their own strategic targets as a yardstick for lower-level employees. Originality/value – This paper helps managers understand the most recent developments on strategy maps. In particular, the author highlights that causalities do not exist in organizations in the same way as there are “laws” in physics. Instead, organizations need to customize their BSC to their way of doing business.

The balanced scorecard: comments on balanced scorecard commentaries

2012 ◽  
Vol 8 (4) ◽  
pp. 539-545 ◽  
Author(s):  
Robert S. Kaplan
Keyword(s):  
Balanced Scorecard ◽  
Strategy Execution ◽  
Personal Writing ◽  
Strategy Formulation ◽  
Content Type ◽  
The Balanced Scorecard ◽  
The Past ◽  
Personal Experiences ◽  
Practical Implications

PurposeThe purpose of this paper is to provide the author's insights about five papers written in this volume about his published work on the balanced scorecard (BSC).Design/methodology/approachThe author's comments are based on his personal writing, teaching, speaking about, and implementing the BSC during the past 20 years.FindingsThe author finds that academic commentary on the BSC often ignores its role in strategy execution.Research limitations/implicationsThe commentary is unique to the author's personal experiences and may not be generalizable to other scholars who have not shared the same experiences.Practical implicationsThe paper may help scholars better understand the role of the BSC for strategy formulation, communication and implementation. It may also aid them in teaching the BSC to students and executives.Social implicationsThe paper discusses how the BSC can be used in public sector applications, as well as for companies that want to internalize environmental, social and community objectives in their strategies.Originality/valueThe paper reflects the personal views of the author; it is original to him.

Exploring strategic execution

2016 ◽  
Vol 9 (4) ◽  
pp. 406-428 ◽  
Author(s):  
Meabh Smith ◽  
John Loonam
Keyword(s):  
Balanced Scorecard ◽  
Qualitative Interviews ◽  
Healthcare Providers ◽  
Healthcare Sector ◽  
Healthcare Organisation ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Irish Hospital ◽  
Improved Performance ◽  
Strategic Execution

Purpose Globally and particularly in Ireland, reduced expenditure on healthcare along with increasing pressure to increase patient throughput and improved performance against standards, is forcing healthcare providers to adopt tools from the business sector and apply them in the healthcare sector to bring about improved performance. The paper aims to discuss these issues. Design/methodology/approach This study is interpretivist in nature, specifically focussing on exploring how the balanced scorecard can support improved service delivery within a hospital department. The research will conduct an exploratory case study of a single hospital site within the Irish republic. This research is based on qualitative interviews with corroboration from document review and direct observation. This study provides a snap-shot of the Cath Lab service at a moment in time. Findings The development of a strategy map and proposed balanced scorecard for an Irish hospital unit. Originality/value The development of a balanced scorecard for a healthcare organisation.

BSC and long-term deployment: an actors' perspective

2020 ◽  
Vol 21 (3) ◽  
pp. 383-396
Author(s):  
Pierre-Laurent Bescos ◽  
Aude Deville ◽  
Philippe Foulquier
Keyword(s):  
Balanced Scorecard ◽  
Single Case ◽  
Actor Network Theory ◽  
Insurance Company ◽  
Cross Sectional ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Long Run ◽  
Human Actors

PurposeThis paper examines the roles of the balanced scorecard (BSC) in a long-term perspective and with a large deployment along numerous hierarchical levels. For this purpose, we use a longitudinal analysis of an implementation in a mutual insurance company.Design/methodology/approachWe combine actor–network theory (ANT) with interventionist research (IVR) to analyze the interrelation between human and non-human actors. Our study is based on various materials like interviews, meeting reports, graphs and so on.FindingsThe BSC is considered as a non-human actor which influences the human actors and provides specific benefits from a long-term use, due to various roles played by this tool (a mediator role, completed by a role of translator and revealer).Research limitations/implicationsResearch based on larger cross-sectional studies are necessary to more deeply validate our results based on a single case study.Practical implicationsThis paper gives some insights on processes and on actors an organization can mobilize to maintain the benefits provided by a large BSC use in the long run.Originality/valueIn line with the ANT concepts, our main contribution is to explain the outcomes of an innovation in management accounting by the consequences of adaptation mechanisms grounded on actors, translations, alliances and trials of strength.

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