The Balanced Score Card (BSC) in Israeli Hi-Tech and Low-Tech firms

Abstract

The goal of this research was to explore whether High-Tech and Low-Tech firms apply the BSC approach [13] and whether there are differences in the way and degree of BSC use among these firms. Furthermore, the research explored what are the core measures of each perspective of the BSC and whether Low-Tech and High-Tech companies differ in their use of these core measurements 215 managers from High-Tech and Low-Tech firms, answered performance questionnaire and several background questions. The results show that High-Tech firms implement the BSC model more than Low-Tech firms do. The current research also shows that the leading performance measures can be found in each perspective, and that the High-Tech firms in Israel use the leading measures that belong to the inner processes factor and part of the measures that belong to the customers and sales factor more than the Low-Tech firms. In contrast, there were no distinctive differences between these firms in the case of utilization of the leading measures of the financial factor. The meaning and implications of these findings are discussed and a shorter set of measures: The Kremer Scale of BSC Performance comprised of the core measures that belong to each of the four perspectives of the BSC model, is been proposed.