The link between perceptions about the balanced scorecard approach and company performance an empirical study

Abstract

This empirical research paper investigates the relationship between perceptions by an organisation's employees (the users of the BSC) about the Balanced Scorecard (BSC) approach and the financial performance of the company measured in terms of return on equity, return on total assets and profit margin on sales. Although the results do not provide support for all the perception variables used in the study, analysis of the data shows a positive relationship between perceptions of the use of the BSC and company performance. More investigation is needed in different settings, for example, in manufacturing or service industries, before the results can be generalised. Also, because of the sample size and the fact that only financial performance measures were considered, the study could be considered limited. Future research may be carried out on strategically linked long-term value creation using the BSC, specifically focusing on the motivational factors for the employees, who use and implement the BSC.