2009
DOI: 10.1002/sdr.413
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A system dynamics‐based simulation experiment for testing mental model and performance effects of using the balanced scorecard

Abstract: This study develops a theoretical model that explains the effectiveness of the balanced scorecard approach by means of a system dynamics and feedback learning perspective. Presumably, the balanced scorecard leads to a better understanding of context, allowing managers to externalize and improve their mental models. We present a set of hypotheses about the influence of the balanced scorecard approach on mental models and performance. A test based on a simulation experiment that uses a system dynamics model is p… Show more

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Cited by 77 publications
(73 citation statements)
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References 32 publications
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“…In general, they are more likely to identify and follow effective strategies to achieve success. This positive relationship between mental model accuracy and performance outcome is well established in the literature [2,3,17,18]. Maani and Cavana [33] developed an analogy of an iceberg for a conceptual model which can relate behavior to mental models.…”
Section: Theory and Hypothesesmentioning
confidence: 69%
See 3 more Smart Citations
“…In general, they are more likely to identify and follow effective strategies to achieve success. This positive relationship between mental model accuracy and performance outcome is well established in the literature [2,3,17,18]. Maani and Cavana [33] developed an analogy of an iceberg for a conceptual model which can relate behavior to mental models.…”
Section: Theory and Hypothesesmentioning
confidence: 69%
“…Providing structural information about the underlying system in order to increase transparency seems to have a positive effect on performance [1][2][3]. Knowledge of cause-and-effect relationships supports learning and the development of mental models which are more similar to a real system.…”
Section: Open Accessmentioning
confidence: 99%
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“…This is the strategic map, which is considered to be as important as BSC itself (Kaplan & Norton, 2004), as it communicates how an organization reaches its strategic objectives (Fernandes, 2003). Thus, it supports senior management in the development of cause and effect relations among the strategic objectives of the BSC perspectives, in order to better understand the business and its dynamics (Capelo & Dias, 2009). …”
Section: Introductionmentioning
confidence: 93%