Linking balanced scorecard measures to size and market: Impact on organizational performance

Résumé du document

What is the relationship between BSC usage and organization size, product life-cycle stage and strenght of market position ?
-Financial perspective
-Customer perspective
-Internal business-processes perspective
-Learning and growth perspective

Extraits

[...] logo But there is no link between a strong market position and the use of BSC. In fact firms with a weak position on the market use the BSC to find a solution, change their strategies and communicate about it. logo Remarks Large firms have more use of BSC than small firms because they expect to get more benefit to these measures. They can spread the cost of information systems over larger output so measurement is more affordable. logo Limitations of this study The measurement of the extent of use of the BSC Using a diversify of measures is not a sufficient argument, in fact it's necessary to use measures for a strategic focus. [...]

[...] It asked respondents to indicate the extent to which each item was used to assess their organization‘s performance on a five point Likert scale ranging from 1 to 5 logo Measurement of variables Organizational Performance Return on investment Margin on sales Capacity utilization Customer satisfaction Product quality logo Pearson Correlation Coefficients logo Regression Analysis logo Additional Regression Analysis logo Conclusion There is a significant link between SIZE & BSC USE. Larger organizations make more use of a BSC. As the size of the company increases BSC are useful to measure the performance of the organization and support the strategics decisions. [...]

[...] logo Balanced Scorecard (BSC) Financial perspective Customer perspective Internal business-processes perspective Learning and growth perspective balanced_scorecard_pic1.jpglogo Balanced Scorecard (BSC) figure_bsc.jpglogo Organization Size Many papers have been written on this subject. The theory of Burns and Stalker (1961), Lawrence and Lorsch (1967) and Woodward (1965) is that The organisation size may affect the organizations design and use of management systems. To Bruns and Waterhouse (1975), Enzemmel (1990), as the firm size increases accounting and control processes tend to become more specialized and sophisticated. Kaplan and Atkinson (1998) small companies do not require elaborate performance evaluation techniques. [...]

[...] The framework of the study which is confined to manufacturing firms only So it's impossible to generalize this paper results to other situations such as the service indutries. The small sample size of the study logo Point no consider in ther questionnary < number > References Book : The Balanced Scorecard: Translating Strategy into Action (Robert S. Kaplan, David P. [...]

[...] Hyp: BSC are more used in larger organization size. logo The link between balanced scorecard and organization size < number > Product Life Cycle Stage plc.pnglogo The organizational strategy literature < number > Merchant (1984) make the hypothesis that organizations with products in the early product life-cycle stages tend to make less use of traditional financial control tools like budgeting than organizations with products in the latter stages. BSC could be used by companies in mature phase of their product life cycle to adopt a new strategy. [...]