scholarly journals LINKING BALANCED SCORECARD MEASURES TO SMES’ BUSINESS STRATEGY: ADDRESSING THE MODERATING ROLE OF FINANCIAL RESOURCES

2015 ◽  
Vol 3 (12) ◽  
pp. 92-99
Author(s):  
Mahshid Lonbani ◽  
Saudah Sofian ◽  
Mas BambangBaroto
Keyword(s):  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Financial Resources ◽  
Financial Measures ◽  
Medium Enterprises ◽  
Moderating Role

Using financial and non-financial measures, the Balanced Scorecard (BSC) approach evaluates different aspects of firms’ performance: financial, customer, learning and growth, and internal business processes. Resource flexibility and availability of financial resources are basically highlighted as separate antecedents of company’s performance. Grounded on resource based view, the role of financial resources on business strategy has been addressed numerously in previous studies.  However, there is limited study to evaluate the role of financial resources on relationship between business strategy and BSC performance measures. Especially there is no study addressing this issue according to the moderating role of financial resources among small and medium enterprises (SMEs). It is worth mentioning that such relationships and models can be more highlighted in a developing countries since financial resources has been debated to be weak in theses context. Grounded in contingency theory, an evaluation of the moderating role that financial resources plays in the relationship between SMEs’ business strategy and balanced scorecard performance measures in SMEs points to the value of providing enough resources for SMEs. External fund providers such as banks and loan providers can help SMEs in this regard since firms could pass the way from business strategy to superior BSC performance measures more successfully.

Effects of cloud computing assimilation on supply chain financing risks of SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou
Keyword(s):  
Cloud Computing ◽  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Supply Chain Integration ◽  
Content Type ◽  
Supply Chain Financing ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

scholarly journals Internal Control and SMEs’ Sustainable Growth: The Moderating Role of Multiple Large Shareholders

2019 ◽  
Vol 12 (4) ◽  
pp. 182 ◽  
Author(s):  
Liangcheng Wang ◽  
Yining Dai ◽  
Yuye Ding
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Sensitivity Tests ◽  
Large Shareholders ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Small and medium enterprises (SMEs) face more risks for sustainable growth due to a lack of resources than large firms in emerging economies. Hence, it is more likely for SMEs to look to risk management for survival in turbulent markets. As a tool of risk management, whether internal control indeed has contributions to the sustainable growth of SMEs, particularly conditional on multiple large shareholders, is empirically unexplored. Using a sample of SMEs listed in China, this study examines the relationship between internal control and sustainable growth, and assesses a moderating role of multiple large shareholders. The results show that effective internal control significantly promotes SMEs to achieve sustainable growth, and the effect is moderated by multiple large shareholders, suggesting that the role of internal control is more prominent in SMEs with multiple large shareholders. These results are robust to a battery of sensitivity tests. This study extends the literature by providing empirical evidence on the role of internal control in SMEs’ sustainable growth.

The Balanced Scorecard: Judgmental Effects of Performance Measures Linked to Strategy

2004 ◽  
Vol 79 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Rajiv D. Banker ◽  
Hsihui Chang ◽  
Mina J. Pizzini
Keyword(s):  
Customer Satisfaction ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Statistical Test ◽  
Performance Evaluations ◽  
Business Unit ◽  
Test Results ◽  
Financial Measures ◽  
The Balanced Scorecard

The balanced scorecard provides a framework for selecting multiple performance measures that supplement traditional financial measures with operating measures of customer satisfaction, internal processes, and learning and growth activities. An essential aspect of the balanced scorecard lies in its articulation of the linkage between performance measures and business strategy. This study conducts an experiment to assess how individuals' evaluations of the performance of business unit managers depend on strategically linked performance measures of a balanced scorecard. Statistical test results indicate that performance evaluations are influenced by strategically linked measures more than non-linked measures only when evaluators are provided detailed information about business unit strategies. The results also confirm Lipe and Salterio's (2000) finding that evaluators rely more on common measures than on unique measures. Evaluators rely more on strategically linked measures than on common measures when they are provided information on strategic linkages, but the reverse relation holds when they are not.

The Balanced Scorecard: Judgmental Effects of Common and Unique Performance Measures

2000 ◽  
Vol 75 (3) ◽  
pp. 283-298 ◽  
Author(s):  
Marlys Gascho Lipe ◽  
Steven E. Salterio
Keyword(s):  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Business Processes ◽  
The Balanced Scorecard ◽  
Business Unit Performance ◽  
Balanced Scorecards ◽  
The Common ◽  
Unit Performance ◽  
Multiple Units

The balanced scorecard is a new tool that complements traditional measures of business unit performance. The scorecard contains a diverse set of performance measures, including financial performance, customer relations, internal business processes, and learning and growth. Advocates of the balanced scorecard suggest that each unit in the organization should develop and use its own scorecard, choosing measures that capture the unit's business strategy. Our study examines judgmental effects of the balanced scorecard—specifically, how balanced scorecards that include some measures common to multiple units and other measures that are unique to a particular unit affect superiors' evaluations of that unit's performance. Our test shows that only the common measures affect the superiors' evaluations. We discuss the implications of this result for research and practice.

scholarly journals Resilience ability and small medium enterprise (SME) survival rate in the middle of business environmental fluctuation

2020 ◽  
Vol 2 (1) ◽  
pp. 1-30
Author(s):  
Ahmad Syaiful Affa ◽  
Muh. Ghafur Wibowo ◽  
Izra Berakon
Keyword(s):  
Survival Rate ◽  
Small And Medium Enterprises ◽  
Environmental Turbulence ◽  
Primary Data ◽  
Organizational Resilience ◽  
Environmental Fluctuation ◽  
Medium Enterprise ◽  
Medium Enterprises ◽  
Moderating Role

Purpose – This study examines the effect of organizational resilience variables on the firm’s survival rate and the moderating role of environmental turbulence variables in the relations of organizational resilience and firm survival.Method – This study uses simple regression to test research hypotheses. Primary data in the form of questionnaires are obtained from Small and Medium Enterprises (SMEs) in Java.Result – The analysis shows that organizational resilience variables can improve the firm’s survival. However, this study did not find the moderating role of environmental turbulence in influencing the relationship between organizational resilience variables and firm survival.Implication – This study can help scholars and practitioners to understand more of the mechanism of organizational resilience and its impact on survival on smaller firms.Originality – This study offer the empirical study of firm survival on small-medium enterprise setting in Indonesia.

The Role of Organizational Slack in Technology Innovation Adoption for SMEs

2010 ◽  
pp. 169-194
Author(s):  
Jaume Franquesa ◽  
Alan Brandyberry
Keyword(s):  
Technology Innovation ◽  
Small And Medium Enterprises ◽  
Strong Predictor ◽  
Capital Intensity ◽  
Innovation Adoption ◽  
Financial Resources ◽  
Organizational Slack ◽  
Types Of Information ◽  
Medium Enterprises

This study explores the relevant dimensions of organizational slack in small and medium enterprises (SMEs) and investigates their impact on adoption of different types of information technology (IT) innovations. Using recent data from a representative sample of 2,296 U.S. SMEs, the authors find that the slack-innovation relationships previously described in larger firms do not hold well for SMEs. Their results show potential slack (measured as access to external credit) to be a strong predictor of technology adoption in SMEs. By contrast, available slack appeared not to be a significant factor in SME innovation adoption. Moreover, the direction of the effects of potential slack was moderated by the capital-intensity of the innovation. In particular, e-commerce, which required lesser financial resources for SME adoption, was found to be pursued by those with lesser potential slack. The authors argue that, in some cases, innovation adoption may represent a form of “bricolage” by resource constrained SMEs.

SME Financial Management

2013 ◽  
pp. 330-342 ◽  
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

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