Does the Balanced Scorecard Add Value? Empirical Evidence on its Effect on Performance

Abstract

Since its emergence at the beginning of the 1990s, numerous companies have adopted the Balanced Scorecard (BSC). This paper tackles two research questions: (1) whether the BSC adds value to companies and (2) if so, how does it contribute to organisational performance. In contrast to previous literature that does not separate these two questions, we rely on an established methodology (Foster and Swenson, 1997) to separate and quantify both the BSC contribution to performance and the way that the contribution is achieved, by applying a unique cause-and-effect scheme to the BSC. Our empirical results are based on survey data collected from 76 business units. They indicate first that the Balanced Scorecard has a positive impact on organisational performance. More specifically, the BSC improves the integration of the management processes and empowers people. Using the Strategy-Focused-Organisation (SFO) model (Kaplan and Norton, 2001), we empirically find that the sources of performance derived from the BSC are primarily of three types: (1) a better translation of the strategy into operational terms, (2) the fact that strategising becomes a continuous process, and (3) the greater alignment of various processes, services, competencies and units of an organisation.

Analysis of Balance Scorecards Model Performance and Perspective Strategy Synergized by SEM

“…In table-3, it means that the process of growth increased by 1 unit, in the form of growth-enhancing activities of the organization and preventing the organization from declining will improve the internal business processes at .327. The test results support the (Bhattacharya et al, 2014;Chen at al, 2011;Geuser at al, 2009;Ken Ogat at al, 2014;Tseng, 2010;Sangjae at al, 2013;Seyed at al, 2011;Stewart, 2001). …”

Utilization of Balanced Scorecard and the Effect of its on the Financial Performace of Companies in the Czech Republic

“…Je nutné uvést, Ïe studie se odli‰ují rozdíln˘mi pfiístupy k v˘zkumÛm (dotazníková ‰etfiení, quasi-experimentální studie, metody párového rozhodování) i rozdíln˘mi v˘zkumn˘mi vzorky, dÛleÏit˘m pojítkem v‰ak zÛstává téma v˘zkumu. Studie ve vût‰inû pfií-padÛ ukázaly pozitivní vztah mezi vyuÏíváním BSC a podnikovou v˘konností [6], [7], [8], [9], [16]. Pouze studie Ittnera a kol.…”

“…Zdroj: [6], [7], [8], [9], [15], [16], [22] 2, XVII, 2014 úzce propojeno se strategií podniku, mÛÏe naopak podnikovou v˘konnost sniÏovat. Za zmínku stojí i studie Bankera a kol.…”

“…[22] a Griffitha a Neelyho [15]. Naopak jsou zís-kané v˘sledky v rozporu s v˘sledky studií [6], [7], [8], [9], [16]. MÛÏe to b˘t dáno tím, Ïe podniky v âR mají za sebou krat‰í dobu vyuÏívání konceptu BSC a tak se je‰tû vyuÏívání tohoto strategického nástroje nemuselo plnû projevit ve vy‰‰í finanãní v˘konnosti.…”

Designing a balanced scorecard model to evaluate strategies of engineering educational institution

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