The use of multiple performance measures and the balanced scorecard (BSC) in Bangladeshi firms

Khan, Habib Zaman; Halabi, Abdel K.; Sartorius, Kurt

doi:10.1108/20421161111138512

Cited by 25 publications

(30 citation statements)

References 82 publications

(138 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…They concluded that customer performance measures in BSC are considered less significant compared to other measures such as financial. The study of Khan et al (2011) on 60 cross section Bangladeshi companies also confirmed that use of financial measures on BSC overweighs non-financial ones such as customer measures. Interestingly, they found out that food industry had the lowest use of non-financial measures among other sectors (only 42%).…”

Section: Discussion and Limitationsmentioning

confidence: 64%

A hybrid approach to achieve organizational agility

Nejatian

Zarei

Nejati

et al. 2018

BIJ

View full text Add to dashboard Cite

Purpose In today’s intense global competition, agility is advocated as a fundamental characteristic for business survival and competitiveness. The purpose of this paper is to propose a practical methodology to achieve and enhance organizational agility based on strategic objectives. Design/methodology/approach In the first step, a set of key performance indicators (KPIs) of the organization being studied are recognized and classified under the perspectives of balanced scorecard (BSC). Critical success factors are then identified by ranking the KPIs according to their importance in achieving organizational strategic objectives using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). In the second step, three houses of quality (HOQs) are constructed sequentially to identify and rank the main agile attributes, agile enablers, and improvement paths. In addition, in order to translate linguistics judgments of practitioners into numerical values in building HOQs, fuzzy logic is employed. Findings The capability of the proposed methodology is demonstrated by applying it to a case of a multi-national food company in Iran. Through the application, the company could find the most suitable improvement paths to improve its organizational agility. Research limitations/implications A limited number of KPIs were chosen due to computational and visual constraints related to HOQs. Another limitation, similar to other agility studies, which facilitate decision making among agility metrics, was that the metrics were more industry-specific and less inclusive. Practical implications A strong practical advantage for the application of the methodology over directly choosing agility metrics without linking them is that through the methodology, the right metrics were selected that match organization’s core values and marketing objectives. While metrics may ostensibly seem unrelated or inappropriate, they actually contributed to the right areas where there were gaps between the current and desired level of agility. It would otherwise be impossible to choose the right metrics without a structured methodology. Originality/value This paper proposes a novel methodology for achieving organizational agility. By utilizing and linking several tools such as BSC, fuzzy TOPSIS, and quality function deployment (QFD), the proposed approach enables organizations to identify the most appropriate agile attributes, agile enablers, and subsequently agile improvement paths.

show abstract

Section: Discussion and Limitationsmentioning

confidence: 64%

A hybrid approach to achieve organizational agility

Nejatian

Zarei

Nejati

et al. 2018

BIJ

View full text Add to dashboard Cite

show abstract

“…Similarly, De Geuser et al 2009could not find any evidence to support the fact that a combination of financial and non-financial measures generates value, while Adler et al (2000) found that financial measures were still very popular among business organisations in New Zealand. In the context of developing countries, Khan et al (2011), reported that financial measures are still widely used in Bangladesh.…”

Section: The Use Of Financial Measures and Organisational Effectivenessmentioning

confidence: 99%

“…While a few studies have been undertaken to examine the role of PMSs in organisational effectiveness, most of the studies have been conducted in the context of developed countries, with very limited research undertaken in the context of developing countries (De Waal and Frijns, 2009;Ismail, 2007;Joshi, 2001;Khan et al, 2011), thereby leaving an empirical gap in this area. Existing literature suggest that the political, social, economic and technological environment of developed countries fundamentally differ from the developing countries, it is, therefore, likely that studies conducted in the context of developed countries only provide a one-sided view about the role of PMSs in organisational effectiveness.…”

mentioning

confidence: 99%

Association between performance measurement systems and organisational effectiveness

Upadhaya

Munir

Blount

2014

International Journal of Operations &Amp; Production Management

View full text Add to dashboard Cite

Purpose-The purpose of this paper is to investigate the role of Performance Measurement Systems in organisational effectiveness in the context of the financial services sector within a developing country. Design/methodology/approach-Using the mail survey method data was collected from 69 financial institutions operating in Nepal. Multivariate analysis, in particular multiple regression analysis was employed to test the hypotheses. Findings-The results suggest that non-financial measures and feedback are tightly intertwined with organisational effectiveness. While institutions are focused on using the performance measures concerning internal business process perspective, less emphasis is placed on using customer and employee related performance measures because they are considered less significant to organisational effectiveness. The findings also reveal that strategy related feedback is considered more critical by management, as opposed to performance and staff. The study also provides evidence that 40.58 per cent of the financial institutions in Nepal had implemented the Balanced Scorecard, which is considered to be high when compared with other developing countries. Practical implications-The findings provide managers with valuable insights pertaining to the role of non-financial performance measures and the importance of feedback in improving organisational effectiveness, which could assist them in (re) aligning their performance measurement practices. Originality/value-The findings of this study contributes to the limited management accounting literature on performance measurement and the impact on organisational effectiveness by providing evidence from the financial services sector within the context of a developing country.

show abstract

“…Garrison, et al (2010) argue that non-financial performance measures need to be integrated with financial performance measures within a well-designed balanced scorecard (BSC) to address the inadequacies of performance measurement. MATs may assist organisations to aid decisionmaking by using both financial and non-financial measures; and the BSC may improve performance of organisations (Khan et al 2011). In this regard, organisations that make use of the BSC may improve their strategies that could lead to improved economic and financial performance.…”

Section: Introductionmentioning

confidence: 99%

Management Accounting Tools f or Sustainability Information Decision - making a nd Financial Performance

Matambele¹,

Poll²

2017

Alternation

View full text Add to dashboard Cite

Many organisations today are still not making use of Management Accounting Tools (MATs) to assist in providing sustainability information for decisionmaking and the way it influences the financial performance of an organisation. As a result it may negatively impact financial performance of organisations due to a number of errors which may include ancient cost drivers; erroneous business decisions, inaccurate information and human errors. Without applying MATs, managers of organisations may find it difficult to improve the day-today operations and take decisions to enhance the financial performance of the business. Information was collected using interviews to examine whether MATs can provide sustainability information for decision-making and how it influences the financial performance of an organisation. The research was carried out among listed organisations on the Johannesburg Stock Exchange (JSE). It was established that MATs provide strategies that influence decisionmaking and performance, although decision-making is the responsibility of executives or directors of the organisations. The study also established that financial managers who are focusing more on financial statements and reporting perform Management Accounting (MA) tasks. Hence future research should focus on the importance of segregating MA roles from those of financial accountants or managers to enable the organisation to focus on different reports for different outcomes. Khathutshelo Matambele & Huibrecht M. van der Poll 190

show abstract

The use of multiple performance measures and the balanced scorecard (BSC) in Bangladeshi firms

Cited by 25 publications

References 82 publications

A hybrid approach to achieve organizational agility

A hybrid approach to achieve organizational agility

Association between performance measurement systems and organisational effectiveness

Management Accounting Tools f or Sustainability Information Decision - making a nd Financial Performance

Contact Info

Product

Resources

About