Environmental Impediments in the Adoption of Balanced Scorecard in Pakistan

Abstract

The status of adoption of balanced scorecard (BSC) in Pakistan is still blurry and keeping different adoption, diffusion and strategic theories in mind, a theoretical framework and four hypotheses were proposed. The target population was organisations of all types and 268 organisations listed in the Karachi Stock Exchange were selected randomly. All constructs were measured through a questionnaire. The results suggest that environmental complexity, competition and consultancy institutions were serving as barriers in the adoption of BSC. However, the factor network personality, a part of the environmental factors, was not significant and was not a barrier. The managers of consultancy institutions can view this study as a benchmark because by reviewing the result they can decide whether it is time to launch a campaign to exert the pressure for adoption of BSC or not to propagate the significance of the BSC tool by stopping further allocation of resources.