Abstract
Background: Prior research confirmed that the balanced scorecard (BSC) can be used successfully at manufacturing small and medium enterprises (SMEs), to assist with sustainability. South African SMEs have a low survival rate despite being a significant contributor to the local economy with the manufacturing sector in particular hampered by negative growth.Aim: The objective of this study was to develop a BSC for manufacturing SMEs in South Africa with measurable key performance indicators (KPIs).Setting: We conducted a Delphi study with cost accounting specialists in different industries.Methods: The development of the generic BSC was facilitated with a Delphi survey and analytical hierarchy process (AHP).Results: The research presents a generic yet flexible BSC for manufacturing SMEs. A total number of 12 generic and 104 specific KPIs were identified. The results revealed a greater emphasis on the financial and customer perspectives that may be conducive to SME sustainability and success.Conclusion: A generic BSC that can be adapted to specific organisational and industry requirements has the potential to enhance SME sustainability and success.
Highlights
South African small and medium enterprises (SMEs) contribute up to 22% of gross domestic product in the economy (Bureau for Economic Research 2016:31)
The survival rate of South African SMEs is very low, with nearly 80% of all SMEs failing over the long term (Brink, Cant & Ligthelm 2003:1; Olawale & Garwe 2010:729)
The high labour costs are further exacerbated by South African labour laws, which render the lay-off of unproductive and redundant staff cumbersome at best (Bureau for Economic Research 2016:8)
Summary
Prior research confirmed that the balanced scorecard (BSC) can be used successfully at manufacturing small and medium enterprises (SMEs), to assist with sustainability. South African SMEs have a low survival rate despite being a significant contributor to the local economy with the manufacturing sector in particular hampered by negative growth. Aim: The objective of this study was to develop a BSC for manufacturing SMEs in South Africa with measurable key performance indicators (KPIs). Setting: We conducted a Delphi study with cost accounting specialists in different industries
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