Application of BSC and EFQM models in small and medium-sized enterprises

Abstract

Research background: The BSC and EFQM models are important tools to help SMEs to improve their performance through strategic initiatives in cooperation with operational activities, through the essential elements of these models. Purpose of the article: The objective of the research presented in this paper is to analyse and compare the existence of Balanced Scorecard and EFQM models in small and medium-sized enterprises (SMEs), and to suggest possibilities of applying these models to a wider range of SMEs. Methods: The process of evaluating research aim was based on a questionnaire survey. The number of respondents was 378. Both small and medium-sized enterprises participated in the survey, with the number of their employees being as follows: from 1 to 9 a total of 28.6% enterprises (28.6%), from 10 to 49 a total of 38.1% enterprises (38.1%) and from 50 to 249 a total of 33.3% enterprises. The methods of descriptive statistics and correlation and regression analysis were used to test the scientific hypotheses. Findings & Value added: Since the research results point to a relatively high dependence, it can be concluded that implementing the models in the SME sector has its justification. In terms of their management practice, the authors of this paper have used the findings directly in their consulting and research activities, and have incorporated the models into strategic management systems of particular enterprises. Recommendations presented here are therefore based on the research as well as conclusions of the hypotheses tested regarding the above two models and their larger introduction to SMEs. The rate of use of the BSC model in SMEs has a statistically significant positive effect on the model performance measurement system. Our results also confirmed that the rate of use of the EFQM models (H3B) in SMEs has not a statistically significant positive effect on the performance measurement system (PMS).