The impact of balanced scorecard mediation in the relationship of perceived environmental uncertainty, business strategy, and organizational performance

Abstract

This research adopts a contingency theory approach to explore the role of the Balanced Scorecard (BSC) as a performance management system. Contingencies, including perceived environmental uncertainty and business strategy, are examined to understand their impact on BSC implementation and organizational performance, with a specific focus on the mediating role of the BSC. Conducting a survey among Jordanian manufacturers, the research gathered 312 usable responses out of 400 questionnaires, achieving a response rate of 78%. Theoretically, this study's framework contributed to management accounting literature by analyzing the impact of perceived environmental uncertainty and business strategy on BSC implementation. The study's findings will help understand the factors that could influence Jordanian manufacturing companies' BSC implementation. This study will also help businesses understand why they need to use BSC to get the right information for making decisions and improve the performance of their organizations.