Linking Balanced Scorecard Measures to Size and Market Factors: Impact on Organizational Performance

Abstract

This paper examines the relationship between organization size, product life-cycle stage, market position, balanced scorecard (BSC) usage and organizational performance. Using financial and nonfinancial measures, the BSC appraises four dimensions of performance: customers, financial (or shareholders), learning and growth, and internal aspects. Based on a survey of 66 Australian manufacturing companies, the paper suggests that larger firms make more use of a BSC. In addition, firms that have a higher proportion of new products have a greater tendency to make use of measures related to new products. A firm's market position has not been found to be associated significantly with greater BSC usage. The paper also suggests that greater BSC usage is associated with improved performance, but this relationship does not depend significantly on organization size, product life cycle, or market position.

Realising the richness of psychology theory in contingency-based management accounting research

“…As noted by Birnberg et al (2007), this helps to test theory in a more detailed way by explicitly representing and measuring at least some of the mental states in the causal process leading from management accounting practices to their effects. Another feature of these studies has been to examine the effect of the information characteristics of management accounting practices, such as cause-effect linkages, strategic linkages, technical validity and comprehensiveness (Webb, 2004;Burney and Widener, 2007;Burney et al, 2009;Hall, 2008) rather than, for example, using simple lists of financial and nonfinancial measures (e.g., Hoque and James, 2000). Although the early research on budgeting prompted a series of studies examining how the impact of budgets on individual outcomes may vary in different settings, studies of more contemporary management accounting practices at the individual level have yet to be developed into explicit contingency frameworks.…”

Using the Balanced Scorecard and the European Foundation for Quality Management Excellence model as a combined roadmap for diagnosing and attaining excellence

“…Such characteristics imply the usage of comprehensive models for business management and performance measurements (Hogue & James 2000). As there are several models to facilitate business management and performance measurements there seems to be a need or temptation to use more than one model (Goldratt & Cox, 2004).…”

Strategic Performance Measurement Systems Implemented in the Biggest Czech Companies with Focus on Balanced Scorecard - An Empirical Study

“…Another important inspiration we take from (Hoque & James, 2000) and (Speckbacher, Bischof, & Pfeiffer, 2003) and of course from numerous articles written by BSC creators -Kaplan and Norton. Interesting is also paper by Soderberg, Kalagnanam, Sheehan, and Vaidyanathan (2011), which methodologically differs a bit from the previously mentioned articles.…”