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 Assessment of the applicability of the Balanced Scorecard concept in small and medium-sized enterprises

Skola biznisa ◽  
2020 ◽  
pp. 112-136
Author(s):  
Ivana Jolović ◽  
Nevena Jolović
Keyword(s):  
Balanced Scorecard ◽  
World Literature ◽  
Business Processes ◽  
Comparative Method ◽  
Relevant Literature ◽  
Efficient Solutions ◽  
Internal Communication ◽  
Performance Measurement System ◽  
Successful Implementation ◽  
The Balanced Scorecard

The modern management concept Balanced Scorecard (BSC), thanks to the efficient solutions it offers, draws increasing attention from the management across the globe. BSC is a performance measurement system which unites a traditional, financial perspective with the consumer, internal business processes, and learning and growth perspectives; and provides intelligibility of the company's vision and strategic goals, strengthening of the internal communication of employees, and more efficient realization of key business activities. The implementation of the BSC concept in large enterprises is a quite simple and efficient process, while the procedure of incorporating its postulates into the structure of small and medium-sized enterprises is extremely complex and uncertain. For that reason, the aim of this scientific research is the assessment of the applicability of the BSC in small and medium-sized enterprises, with a simultaneous overview of examples of successful and less successful implementation practices, and the most frequent reasons for non-implementation of the concept itself. The research is inspired by the observation that the world literature has, to a certain extent, neglected the analysis of the application of the BSC concept in small and medium-sized enterprises. The descriptive and comparative method, the technique of analysis and synthesis, as well as analysis of the content of relevant literature of reference, national and foreign authors were used for research purposes. The result of the research is the confirmed assumption that the implementation of the BSC concept in small and medium-sized enterprises is possible but at the same time quite complex and demanding due to the influence of different variables. Accordingly, the recommendations such as that the BSC model should be simplified and burdened with a smaller number of metrics in order to become more applicable in small and medium-sized enterprises were derived in the research.

Strategic scenario analysis combining dynamic balanced scorecards and statistics

2019 ◽  
Vol 69 (9) ◽  
pp. 1881-1902
Author(s):  
Enrico Supino ◽  
Federico Barnabè ◽  
Maria Cleofe Giorgino ◽  
Cristiano Busco
Keyword(s):  
Scenario Analysis ◽  
Balanced Scorecard ◽  
Success Factors ◽  
Implementation Process ◽  
Strategy Formulation ◽  
Content Type ◽  
Research Perspective ◽  
The Balanced Scorecard ◽  
Balanced Scorecards ◽  
Model Reliability

Purpose The purpose of this paper is to explore the way in which system dynamics (SD) can enhance some key success factors of the balanced scorecard (BSC) model and support decision-makers, specifically in analyzing and evaluating the results of hypothetical scenarios. Moreover, the paper aims to emphasize the role played by statistics not only in validating the SD-based BSC, but also in increasing managers’ confidence in the model reliability. Design/methodology/approach The paper presents a case study, developed according to an action research perspective, in which a three-step approach to the BSC implementation was followed. Specifically, the first step requires the development and implementation of a “traditional” BSC, which is refined and transformed into a simulation SD model in the second step. Last, the SD-based BSC is combined with statistics to develop policy making and scenario analysis. Findings The integration of BSC and SD modeling enables the development of a comprehensive approach to strategy formulation and implementation and, more importantly, provides a more reliable basis upon which to build and test sound cause-and-effect relationships, within a specific BSC. This paper exemplifies how an SD-based BSC can be used – and perceived reliable – to evaluate different scenarios and mutually exclusive policy effects in a multidimensional approach. In particular, this study illustrates how to forecast and depict trends for financial and non-financial indicators over the simulation period, with reference to three different scenarios. Originality/value This paper contributes to the ongoing debate on the BSC by exploring whether a combination of SD and statistics may enhance the BSC system’s advantages and facilitate its implementation process and use for decision-making and scenario analysis.

Design principles for the development of the balanced scorecard

2016 ◽  
Vol 30 (5) ◽  
pp. 622-634 ◽  
Author(s):  
Zehra Keser Ozmantar ◽  
Tokay Gedikoglu
Keyword(s):  
Performance Management ◽  
Balanced Scorecard ◽  
Developmental Process ◽  
Educational Institution ◽  
Implementation Process ◽  
Design Principles ◽  
Open Communication ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Flexible Management

Purpose – The purpose of this paper is to investigate the development and implementation process of the balanced scorecard (BSC) approach in an educational institution in the context of the Turkish educational system. It also aims, on the basis of the results of the applications in a particular school, to define principles through which the development of BSC could be successfully achieved. Design/methodology/approach – The study adopts a design-based research method which provides a particularly useful approach to the solution of real problems in the field of education. The study was carried out in a private educational institution with 161 members of staff including managers, teachers and personnel of the support units. Scorecards for the institution as well as 161 members of staff were developed. Findings – The examination of the developmental process suggests 12 design principles: willingness to change; managerial support; flexible management structure; appropriate team members; training of staff; availability of strategic planning; distinctive BSC dimensions; smart strategic objectives; balance between leading and lagging indicators; developing individual scorecards; open communication system; structured report format. Originality/value – This is the first study that develops BSC for a school in a Turkish context. The design principles, the author believes, are particularly useful for schools that do not have a strategic performance management background. This study is also important in terms of putting forward the applicability of BSC in educational organizations in different cultures and thus gaining new insights about the developmental process of BSC.

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.

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.

Barriers of knowledge transfer and mitigating strategies in collaborative management system implementations

2019 ◽  
Vol 49 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Juanqiong Gou ◽  
Nan Li ◽  
Tete Lyu ◽  
Xiyan Lyu ◽  
Zuopeng Zhang
Keyword(s):  
Information Systems ◽  
Knowledge Transfer ◽  
Management System ◽  
Transfer Problem ◽  
Relevant Literature ◽  
Implementation Process ◽  
Collaborative Management ◽  
Practical Implementation ◽  
Content Type ◽  
Implementation Methodology

PurposeAs the dynamics of the external environment of the enterprise continue to increase, the support of information systems for organizational agility becomes increasingly important. Collaborative Management System (CMS) is a new type of information system that can cope with the dynamic changes of the organization. Effective knowledge transfer is the core of the system implementation. The purpose of this study is to explore the knowledge transfer barriers faced by CMS in its implementation process.Design/methodology/approachThrough field interviews with a representative CMS provider, this paper summarizes the barriers of knowledge transfer during CMS implementation into three aspects.FindingsBased on the innovative measures taken by the company and relevant literature, the corresponding mitigating strategies are proposed.Originality/valueThe findings enrich the implementation methodology of agile information systems by exploring the knowledge transfer problem from a novel context. The study also provides a reference for practical implementation to overcome the dilemma of knowledge transfer.

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.

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