scholarly journals The Balanced Scorecard and Enterprises’ Performance Evaluations: The Saudi Context

2021 ◽  
pp. 1-8
Author(s):  
Abeer AlAzzaz ◽  
Mohammed Bu haya
Keyword(s):  
Developing Countries ◽  
Saudi Arabia ◽  
Competitive Advantage ◽  
Balanced Scorecard ◽  
Decision Makers ◽  
Performance Evaluations ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Industrial Sectors ◽  
Clear Vision

The balanced scorecard is one of the most important and effective tools for evaluating the performance of companies by combining financial and non-financial measures. The research aims to study the effect of applying the balanced scorecard on evaluating the performance of small and medium-sized Saudi companies. Despite the benefits of applying the balanced scorecard, previous studies on this topic are limited. In particular, there is little research on small and medium-sized enterprises in the developing countries, such as Saudi Arabia. A questionnaire was developed and distributed to a random sample that consisted of 76 respondents from various sectors (the commercial, service, and industrial sectors). Using a descriptive analytical method, the results showed that applying the balanced scorecard has an impact on the process of evaluating the firm performance, which is reflected positively in the competitive advantage. The companies under study are keen to adopt the scorecard in order to attain first the customer dimension, followed by internal processes, learning and financial dimensions. The balanced scorecard is being implemented more in medium-sized companies as compared with small ones. This study contributes to providing a clear vision for managers, decision-makers, and researchers to help them understand the importance of implementing the balanced scorecard to improve the performance of companies.

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.

Relative Weighting of Common and Unique Balanced Scorecard Measures by Knowledgeable Decision Makers

2005 ◽  
Vol 17 (1) ◽  
pp. 43-53 ◽  
Author(s):  
William N. Dilla ◽  
Paul John Steinbart
Keyword(s):  
Balanced Scorecard ◽  
Alternative Explanation ◽  
Decision Makers ◽  
Performance Evaluations ◽  
Business Unit ◽  
The Balanced Scorecard ◽  
Limited Experience ◽  
Classroom Training ◽  
Relative Weighting ◽  
Rule Out

Prior research has found that decision makers with limited experience in using the Balanced Scorecard (BSC) ignored measures that reflect the unique strategy of a business unit and based their performance evaluations solely on measures common across units. The purpose of this study is to investigate whether decision makers who have had training and experience in designing BSCs exhibit the same behavior. Results of an experiment show that decision makers who are knowledgeable about the BSC attended to both common and unique measures, but placed greater emphasis on the former. These results hold in both a performance evaluation judgment and in a bonus allocation decision. We attribute these results to the knowledge participants acquired through classroom training on the design of the BSC, but cannot rule out an alternative explanation that our results differ from previous research because participants in our study were undergraduate accounting and information systems majors, rather than M.B.A. students.

scholarly journals How the Balanced Scorecard Is Implemented in the Spanish Footwear Industry

2021 ◽  
Vol 13 (10) ◽  
pp. 5641
Author(s):  
Carlos Suárez-Gargallo ◽  
Patrocinio Zaragoza-Sáez
Keyword(s):  
Balanced Scorecard ◽  
High Grade ◽  
Exploratory Research ◽  
Online Questionnaire ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Cause And Effect ◽  
Phone Calls ◽  
Footwear Industry ◽  
Final Sample

This paper provides a deeper knowledge of the implementation of the Balanced Scorecard (BSC) in the Spanish footwear industry, under an exploratory research which has been conducted with a final sample of seven firms. An online questionnaire was developed, supported by phone calls and a personal interview. An 18–24-month-period has been found to be enough to develop solid foundations for a BSC. Financial and non-financial measures are presented in the whole firms and in the majority of the four perspectives, linked by cause-and-effect relationships, showing a high development in the BSC implementation. BSCs with a high grade of development are more likely to identify their intangibles as well as include them in the firm’s strategy. A personal BSC has been identified as a limitation. Although the strategy is spread out with meetings in the whole firms, it is not known at all levels, showing a gap to be fulfilled. Strategy maps are key in BCS implementation: they are present in the majority of the firms and show that the performance drivers reach the strategy. Firms with a high grade of development and expectation, using both financial and non-financial measures linked by cause-and-effect relationships, are more likely to define sustainable measures, integrating them in their own BSC.

scholarly journals The Moderating Effect of Procedural Justice on the Effectiveness of the Balanced Scorecard in Improving Managerial Performance through Organizational Commitment

2010 ◽  
Vol 12 (3) ◽  
pp. 415
Author(s):  
Supriyadi Supriyadi
Keyword(s):  
Organizational Commitment ◽  
Procedural Justice ◽  
Balanced Scorecard ◽  
Moderating Effect ◽  
Managerial Performance ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Nonfinancial Measures ◽  
The Impact ◽  
The Relationship

This study extends prior studies on the effectiveness of theBalanced Scorecard (BSC) to improve managerial performancedone by Lau and Mosser (2008) and Lau and Sholihin (2005).Specifically, the study empirically tests the moderating effects ofprocedural justice on the relationship between the financial andnonfinancial dimensions of BSC and managerial performance. Italso tests the impact of organizational commitment on performance.Based on survey data from 76 respondents, the results indicate thatperceived procedural justice in the use financial and nonfinancialdimensions of the BSC is associated with managers’ organizationalcommitment. It further finds that organizational commitment ispositively related to performance. The study extends the literatureby providing empirical evidence about the moderating effect ofprocedural justice on the relationship between the financial andnonfinancial dimensions of BSC and organizational commitment.Keywords: balanced scorecard; organizational commitment; financial measures;managerial performance; moderating effect; nonfinancial measures;procedural justice

Sustainable Competitive Advantage With the Balanced Scorecard Approach

2019 ◽  
pp. 1415-1428
Author(s):  
Jorge Gomes ◽  
Mário José Batista Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
External Factors ◽  
Sustainable Competitive Advantage ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
The Subject ◽  
Internal Sources

Why are some firms more successful than others? This question has been intensely debated by strategic management researchers over the last 30 years. Competitive advantage is recognized as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. Recently, there has been an increasing amount of empirical research on the subject of competitive advantage and about distinguishing competitive advantage from organizational performance. The relevance of competitive advantage is not simply determined by external factors, but also by those internal sources that have been considered critical for successful organizations.

Measuring and Managing E-Business Initiatives through the Balanced Scorecard

2011 ◽  
pp. 152-168 ◽  
Author(s):  
Wim Van Grembergen ◽  
Isabelle Amelinckx
Keyword(s):  
Information Technology ◽  
Performance Measurement ◽  
Measurement System ◽  
Balanced Scorecard ◽  
Performance Measurement System ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Business Perspective ◽  
Customer Perspective ◽  
A Performance

The Balanced Scorecard (BSC) initially developed by Kaplan and Norton is a performance measurement system that supplements traditional financial measures with the criteria that measure performance from three additional perspectives: customer perspective, internal business perspective, and innovation and learning perspective. In recent years, the Balanced Scorecard has been applied to information technology in order to ensure that IT is fairly evaluated. The proposed methodology can also be applied to e-business initiatives. In this chapter, it is illustrated how the BSC can be used to measure and manage e-business initiatives. A generic e-business Balanced Scorecard is proposed and its development and implementation is discussed.

scholarly journals PENGGUNAAN BALANCED SCORECARD DALAM STRATEGIC MANAGEMENT JAMU PUSPO

2011 ◽  
Vol 4 (1) ◽  
pp. 24-38
Author(s):  
Andre Utoro Pusposuharto ◽  
Dewi Damayani ◽  
Rieke Henriani ◽  
Jimmy Sadeli
Keyword(s):  
Balanced Scorecard ◽  
Business Processes ◽  
Management Strategies ◽  
Past Performance ◽  
Business World ◽  
Financial Measures ◽  
Strategic Objectives ◽  
The Balanced Scorecard ◽  
A Company

The ’balanced scorecard’ is used not only as a tool to clarify the strategy of a company, but more importantly used for planning and development strategies. Without a strategy, it is impossible to survive in a competitive and dynamic business world. Combining long-term competitive capabilities with the goal of creating a synthesized company, the balanced scorecard can be trusted to utilize the financial measures of past performance to predict future performance. This data was analyzed from four perspectives: financial, customer, internal business processes, and learning and growth. The balanced scorecard is used as a basic measure, not only of the company's long-term goals, but also from the inclusion of the vision and mission. Herbal Puspo, a company engaged in the field of herbal pharmaceuticals, is also in the process of determining the direction and objectives of the company. The authors help determine its vision and mission which is then translated into strategic objectives for the company. The authors collected data and information, including surveys and industry analysis, which is then analyzed using a variety of basic theories of management strategies such as Porter's Five Forces and the TOWS matrix. From this analysis, the authors, together with the company management, summarized a strategic measure which was then translated into the four perspectives of the balanced scorecard companies.

scholarly journals Multi-dimensional performance measurement practices in developing countries: A literature review and future research direction

2016 ◽  
Vol 13 (2) ◽  
pp. 497-517 ◽  
Author(s):  
Habib Zaman Khan
Keyword(s):  
Developing Countries ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Manufacturing Sector ◽  
Theoretical Perspective ◽  
Research Direction ◽  
Future Research ◽  
Accounting Performance ◽  
The Balanced Scorecard ◽  
Measurement Practices

This study reviews work on multi-dimensional performance measurement (MPM) and MPM tools such as the balanced scorecard (BSC) in developing countries. 103 papers published by accounting, performance measurement and management journals between 1987 and 2013 are analysed according to their topics, settings, theories and research methods. The principal findings are that firms in developing countries: use MPM but rates vary between countries; BSC was a popular MPM tool; MPM usage was related to varied internal and external factors; the manufacturing sector was the main focus of MPM research; and most studies fail to explicitly articulate their theoretical perspective, identify research gaps or reveal their research motivation. Following this review on MPM usage, MPM in developing countries is presented, and important future research directions identified and presented in the form of research questions.

scholarly journals The Determination of Performance Measures by Using a Balanced Scorecard Framework

2019 ◽  
Vol 11 (1) ◽  
pp. 43-56
Author(s):  
Irem Kefe
Keyword(s):  
Balanced Scorecard ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Manufacturing Company ◽  
Strategy Map ◽  
Owned Company ◽  
The Relationship ◽  
A Company

Abstract The aim of this study was to determine the contributions of the balanced scorecard (BSC) methods to identify the relationship between the objectives and activities and examine how the BSC should be formed in a manufacturing company. The BSC framework was examined via a case study in a yarn manufacturing company. The activities to be carried out by the company to achieve its objectives and how the appropriate measures are determined in evaluating the contribution of the activities to the achievement of objectives are explained under the BSC approach. The BSC implementation and adaptation have facilitated in a family owned company because of its fast decision-making process. Objectives are made clear in accordance with the company’s strategy and causal relationship between objectives and activities are linked by the strategy map. The BSC implementation shows that financial measures are not enough to evaluate the effects of all the activities on the objectives in a company. The cooperation between departments in the company and the efficiency of corporation meetings increases. The meetings have become more result-oriented due to clarifying objectives and responsibility of individual levels.

Sustainable Competitive Advantage With the Balanced Scorecard Approach

2018 ◽  
pp. 5714-5725 ◽  
Author(s):  
Jorge Gomes ◽  
Mário José Batista Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
External Factors ◽  
Sustainable Competitive Advantage ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
The Subject ◽  
Internal Sources

Why are some firms more successful than others? This question has been intensely debated by strategic management researchers over the last thirty years. Competitive advantage is recognised as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. Recently, there has been an increasing amount of empirical research on the subject of competitive advantage (Ray et al., 2004; Newbert, 2008) and about distinguishing competitive advantage from organisational performance (Powell, 2001). The relevance of competitive advantage is not simply determined by external factors, but also by those internal sources that have been considered critical for successful organisations.

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