Conceptualisation of the Balanced Scorecard (BSC) model

Abstract

Purpose -This paper aims to review and analyze the validity and relevance of the conceptualization of the Balanced Scorecard (BSC) model, especially within an African context. The BSC model was developed to address the problems and limitations of relying solely on traditional financial measures. This paper carries out a critical review and detailed analysis on perspectives surrounding the BSC model. Design/methodology/approach -The paper critically reviews relevant literature on the BSC model by focusing on the pertinent issues surrounding the applicability of the BSC model in modern business environment. A critical review of conceptualization issues regarding the BSC model especially with a focus toward its application within an African framework was also done. Findings -It is established that the BSC model plays a pivotal role in assisting business executives in making holistic long-term management decisions. However, the model puts undue emphasis on shareholders' wealth maximization at the sacrifice of other equally important stakeholders. The model puts less emphasis or completely ignores such stakeholders as competitors, suppliers, lenders, government, the local community and the natural environment. The model is fraught with many conceptualization assumptions that are not realistic in the modern environment. Practical implications -It is envisaged that the study should add to the literature on corporate performance measures and the BSC model. The revelations gained through this paper will enable researchers to have an open mind on the way the BSC model is supposed to be modified and applied for various business environments. Originality/value -The revelations of the paper point out application limitations of the BSC model, there is an imperative need to upgrade and redesign the BSC model to reflect realities of modern business activities, especially within an African context.

The impact of internal marketing and market orientation on performance: an empirical study in restaurant industry

“…The BSC is based on four well-known perspectives; one financial and three non-financial (i.e. customer, internal business processes, and learning and growth perspective) (Milis and Mercken, 2004;Khomba, 2015;Hu et al, 2015).…”

“…Financial perspective: This perspective is used to determine the level of customer satisfaction (Stwart and Mohamed, 2012) and recognize the importance of customers toward firm success. The source of existence of any public or private organization is the need to serve a certain group of consumers or customers (Khomba, 2015).…”

“…Financial perspective: This perspective focuses on an organization's internal processes in terms of conducting operations efficiently and effectively. The goal is to focus on the internal business results that lead to the customers' and shareholders' satisfaction and financial success (Dirks, 2010;Khomba, 2015).…”

Model Strategy for Performance Improvement Using Balance Scorecard on Company on Company Electrical Distributors

“…d. Determining the benchmarks of BSC of the company of distributor electrical [15]. e. The design drawings of BSC of the company of distributor electrical f. Analysis of causal relationships g. The depiction on the company of distributor electrical strategy chart h. Analysis of the design of the Balanced Scorecard model [16] In Figure 1 Map of Strategy of Electric Distributor Company can be explained that the profit of sales obtained if the company is able to increase sales growth obtained through improving customer satisfaction by increasing productivity and customer relationship by improving the ability of handling complain and cost efficiency obtained through increased employee capability index and disciplinary employees.…”

Business Process Assessment with Balanced Scorecard and Framework COBIT

“…This model does not emphasize or completely disregard stakeholders such as competitors, suppliers, creditors, governments, local communities and the natural environment. The model is full of many unrealistic conceptuality opinions in the modern sphere [9].…”