Balanced Scorecard Methodology Research Articles

Evaluation of Financial Performance with the Balanced Scorecard Approach in Retail Companies

This research assesses the financial performance of retail enterprises utilizing the Balanced Scorecard (BSC) methodology. The study used a quantitative methodology, gathering data from 75 retail firms via a Likert-scale questionnaire (1 to 5). The analysis use SPSS version 26, concentrating on four key Balanced Scorecard perspectives: financial, customer, internal business processes, and learning and growth. The findings indicate substantial positive relationships across the customer, internal processes, and learning and growth perspectives with financial success, with the customer viewpoint serving as the most robust predictor. The results indicate that retail firms can improve financial performance by prioritizing customer satisfaction, operational efficiency, and ongoing innovation. These insights offer significant recommendations for retail managers seeking to synchronize strategic objectives with operational performance.

Financial Performance Assessment Using Balanced Scorecard Methodology in Indonesian Banks

The objective of this study is to assess the financial performance of XYZ Bank through the lens of the balanced scorecard approach. The research method employed is qualitative, with data drawn from the annual reports of the banks in question for the period spanning 2020 to 2021. This period encompasses both the pre-merger and post-merger phases of Bank Syariah Indonesia. The findings of this study indicate that, from a financial perspective, the combined ROE ratio of the three Islamic banks, which has undergone a merger, is improving and includes healthy qualifications, approaching 15%. The customer perspective reveals an encouraging improvement in profitability, which is attributable to both customer migration from the predecessor bank to the merged bank and new customer growth. The merger has facilitated operating efficiency due to the synergy of the merger, leading to an increase in employee productivity, as measured by revenue. The establishment of several business unit networks represents an innovative form of internal business process, which can facilitate service delivery. The implications of this research provide a more detailed description of performance measurement using data from the company's published annual reports. Previous balance scorecard research employed survey methods in order to obtain information related to the growth and learning perspectives, as well as the customer and internal business process perspectives. In contrast, this study uses only data from the company's financial statements and annual reports.

SOE REGIONAL GENERAL HOSPITAL PERFORMANCE MEASUREMENT USING THE BALANCED SCORECARD METHOD

An organization must assess the efficacy of its implemented performance measures. SoE Regional General Hospital is a local government agency specializing in public health services. This study endeavors to evaluate the performance of SoE Regional General Hospital (RSUD) by applying the Balanced Scorecard methodology. It was a descriptive quantitative study involving 81 respondents (54.9% female, 45.1% male), with a sample of 72 employees (72.8% female, 27.8% male). The findings indicate that RSUD SoE achieved a total performance measurement score of 0.6, categorizing it as 'good'. Specifically, revenue growth is observed from the financial perspective, albeit not reaching the target; expenditure costs remain within budget, and annual SILPA is reported. Customer satisfaction stands at 64.6%, representing a positive outcome in the customer perspective. Innovations in operational processes are evident in the internal business perspective, though inpatient service indicators fall short of Ministry of Health standards. Regarding growth and learning, employee satisfaction reaches 70.8%, with regular training programs and a favorable retention rate, indicating a conducive environment for employee productivity. Overall, the Balanced Scorecard assessment places the performance of the state-owned hospital within an acceptable range, indicating satisfactory performance levels.

УПРАВЛІННЯ РЕЗУЛЬТАТИВНІСТЮ ДІЯЛЬНОСТІ ПІДПРИЄМСТВА

In the conditions of uncertain environment, performance management is the important component of the management system that determines the competitiveness of the enterprise and its ability to withstand risks and crises. In this regard, identification of performance and selection of optimal methodological tools for analytical assessment of performance and its management is the urgent task. The article reveals the essence, origin, distinction and interrelation between the concepts of «result» and «effect», «efficiency» and «effectiveness». It is argued that the effectiveness of activity characterises the level of achievement of its goals, while efficiency is the means, methods, ways that are used to achieve these goals. The authors focus attention on the target orientation of the category of «effectiveness of activity» and the expediency of its consideration as a generalising characteristic of various positive effects obtained in connection with the productive usage of resources based on the full realisation of the existing capabilities and development potential of the particular enterprise. The factors of influence on performance are outlined. The meaning of the concept «management of enterprise performance» is revealed and the necessity of permanent performance management is substantiated. Based on generalisation, traditional and modern approaches to performance management are allocated through the usage of logical-deductive and empirical-deductive groups of evaluation indicator systems. The advantages and disadvantages of applying different approaches in modern conditions are determined. The expediency of applying the BPM performance management system for national enterprises operating in the uncertain environment due to the martial law in the country is argued. The practical significance of the study is to substantiate the feasibility of continuous monitoring and management of enterprise performance by means of BPM (Business Performance Management) in combination with the Balanced Scorecard (BSC) methodology as the effective technology for correlating performance indicators in accordance with organisational goals and changes in the environment.

AN INVESTIGATION INTO THE RELATIONSHIP BETWEEN BSC OUTCOMES AND ORGANIZATIONAL CULTURE: ASSESSING RESEARCH OPPORTUNITIES IN THE BUSINESS SECTOR

The Balanced Scorecard, by incorporating various dimensions, provides a comprehensive perspective on organizational performance, allowing leaders to make well-informed decisions that are in harmony with long- term goals and promote enduring success. This study examines the evaluation of performance management practices through the lens of the Balanced Scorecard (BSC) methodology and its interplay with corporate culture, particularly in relation to its effects on organizational performance within private enterprises. The primary objective of this research is to develop new potential constructs that can contribute to the existing body of knowledge in management science. Employing a qualitative research approach, this study analyzes previous literature and utilizes NVivo software to identify key themes and sub-themes. The findings suggest that the identified constructs can enhance business models aimed at fostering strategic business development through human resource advancement.

Knowledge of financial management practices of listed SMEs

RESEARCH OBJECTIVE: Small and medium businesses are constantly driving economic prosperity. The SME sector accounts for the overwhelming majority of enterprises, i.e. 99.8%, both in Poland and in the EU as a whole. Therefore, the aim of this article is to verify the research hypothesis assuming that Knowledge Management (KM) plays a key role in the financial management of small and medium-sized listed companies, especially in terms of investment decisions.
 THE RESEARCH PROBLEM AND METHODS: The research method used in this article will be the analysis of stock market data describing as a not very satisfied financial condition of small and medium listed companies in times of broad economic crises, which mainly include the pandemic time and the armed conflict in Ukraine. On the basis of selected financial data, estimate an econometric model was created to help explain the mechanism of changes occurring the financial condition of the listed business entities.
 THE PROCESS OF ARGUMENTATION: A literature review confirming the important role of knowledge management including the Balanced Scorecard (BSC) methodology in financial situation of the joint-stock companies. The current state of the global economy is leading to a dangerous situation in which it is becoming increasingly difficult to maintain a secure financial cushion.
 RESEARCH RESULTS: Estimation of an econometric model is expected to confirm the research hypothesis that KM plays a key role in the financial management of small and medium-sized listed companies, especially in terms of their investment decisions in range of using innovative method as BSC.
 CONCLUSIONS, INNOVATIONS, AND RECOMMENDATIONS: The article explains the key role of KM in the financial management of small and medium-sized listed companies during crises. The results of the estimated model can serve the more effective management of SMEs listed on NewConnect and other alternative trading floors around the world.

Effects of Using Operational Balanced Scorecard in Automotive Industry. A Case Study

Abstract Strategy definition is an elementary key of success and should be present in any industry, but an extra attention is paid to the automotive field. Thus, strategy definition and cascade in the organization is needed to drive the organization in the right direction, in the desired direction and ensuring the commitment, involvement of the employees. This paperwork presents a case study from automotive industry, of applying Operational Balanced Scorecard methodology, under Company Strategy Deployment unique and personalized approach to company needs. A systemic outlook and an appropriate involvement support the company's continuous improvement efforts. The introduction presents general information on the Total Performance Scorecard and its ad-vantages. Going forward, the Company Strategy Deployment approach of the mentioned tools are described, showing in parallel the evolution of the implementation in an automotive respectable company. The paper ends up with the formulation of conclusions regarding the deduced effects.

Analysis of Organisational Performance Utilizing the Balanced Scorecard Approach

The objective of this study is to evaluate the performance of PT Angkasa Pura II using the balanced scorecard methodology. According to the Slovin formula, there were 98 employees in the sample size. The essential data included in this study was gathered by distributing questionnaires to all participants. The SPSS version 23 software for the Windows operating system facilitates the use of multiple regression as the data analysis technique in this study. Furthermore, the study also included descriptive statistical analysis. This analysis encompassed doing classical assumption tests, which consisted of normality testing, heteroscedasticity testing, and multicollinearity testing. Additionally, all hypotheses underwent partial, simultaneous, and coefficient of determination tests. The findings of this study suggest that the financial, customer, internal business, and growth and learning perspectives collectively and partially exert a favorable and statistically significant impact on the performance of PT Angkasa Pura II (Persero).

WHAT IS THE ROLE OF PRODUCT INNOVATIONS AND PERFORMANCE OF PUBLIC UNIVERSITIES IN KENYA?

Product innovation research is seen as an enabler of organizational performance. In spite of this perspective, not much research is being done on product innovation in academic contexts. This study sought out to investigate how product advancements impacted Kenya's public universities' performance. The resource-based theory and the balanced scorecard methodology were both applied in this study. A cross-sectional study methodology was employed. The target participants in this study were the 31 public universities in Kenya. The sample frame for this investigation included 10 public universities. 100 responses from the population were chosen. Respondents were chosen from Kenya's 10 public universities using a stratified random sample method. The sample size for the 80 respondents was determined using the Israel (2009) formula. Primary data were gathered using structured questionnaires that included both closedand open-ended questions. The questionnaire items were assessed using a Likert-type scale. The study's respondents were the administration and administrative personnel of Kenya's public universities. The survey's participants included the deputy vice-chancellors, directors, deputy directors, managers, and senior administrators. While the validity of the research instrument was assessed by academic researchers and business specialists, Cronbach Alpha coefficients were employed to test the reliability of the research instrument. The outcomes of the descriptive statistics and linear regression method analysis of the data were displayed in tables and figures. The results of Kenya's public universities were shown to be strongly correlated with product innovations (F, 64.0 = 59.9, p 0.000). According to the study's findings, product improvements can properly explain performance at public universities. For better performance in Kenya's public universities, the report advises universities to give priority to product development. In theory, management practice, and decision-makers like the Commission for University Education and the Kenyan Ministry of Education, it is implied that the results of this study will have a significant impact.

Using the Balanced Scorecard and the Analytic Hierarchy Process to Rank the Key Performance Factors in the Iranian Banking Industry

Ranking the appropriate Key Performance Factors (KPFs) for banks in Iran is vital for determining the focus of the bank’s economic growth and development. Although identifying the appropriate KPFs is important for the outgrowth of the Iranian banks, one of the most critical performance drivers is establishing the appropriate strategy management framework and infrastructure to drive strategic performance in Iranian banks. The Balanced Scorecard (BSC) methodology is a multidimensional strategy management performance system that provides leaders with tools to identify industry forces, to develop a strategic plan with causal linkages, to align an organization, to drive performance, and to evaluate organizational growth and development. The BSC was the conceptual framework used in this study along with the Analytic Hierarchy Process (AHP) method. The population of this study consists of 25 professionals of the Iranian Banking Network (IBN). A purposive judgmental sample was used to arrive at the sample size. The aim of this study was to identify, rank, and prioritize the appropriate KPFs to determine the best path forward to advance the bank’s economic goals and to strengthen the nation’s economy. The AHP method guided the decision of the banking professional in determining the KPFs for the Iranian banking industry. The KPFs were grouped together according to the BSC’s four perspectives: financial, customer, inner process, and learning & growth. The study provided implications for decision makers in the Iranian banking industry that the highest KPFs for the financial perspective is economic value-added, for the customer perspective is future years profit, for the internal process perspective is given facilities, and for the learning and growth perspective is the average work life of an employee.

Digital Balanced Scorecard System as a Supporting Strategy for Digital Transformation

Reports of the high percentage of failed digital transformation ventures motivate the need to find a comprehensive framework with regulatory attributes to support these initiatives. Due to its structure, consistent strategy decomposition capabilities, and strategic map architecture, the assumption is that a customized version of the Balanced Scorecard can ensure the better overall success of digital transformation projects. The qualitative analysis methodology was applied to previous research, and this study identified critical issues and challenges related to the strategy and overall endeavor of digital transformation. Based on the methodology of the traditional Balanced Scorecard, a draft version of the Digital Balanced Scorecard was formulated. The Digital Balanced Scorecard is a comprehensive, primarily prescriptive model that is focused directly on the challenges, opportunities, and obstacles of transformation. The proposed BSC model can consistently interpret a digital strategy and assist organization leaders in successfully formulating and coordinating all necessary activities and projects to apply technologies. The Digital BSC provides the projection of financial results and improvements in sustainability after transformation. The proposed solution to support digital transformation can accelerate an organization’s development, improve efficiency, and strengthen efforts to achieve an organization’s sustainability goals.

INCREASING BUSINESS EFFICIENCY BASED ON A BALANCED PERFORMANCE SYSTEM

A balanced system of indicators is an important component of the implementation of the company's strategy. Currently, for the successful functioning of enterprises, it is not enough to focus only on the final financial results of activities, an integrated approach is important, the essence of which is to take into account all the constituent components, such as resources, business processes, finance, etc. The use of the balanced scorecard methodology allows us to take into account all these indicators and contributes to improving the business efficiency and competitiveness of the enterprise. The article presents the concept of a balanced system of indicators, goals, tasks and functions, discusses the basic schemes of a system of balanced indicators in the main areas, provides the benefits that can be obtained from the introduction of a system of balanced indicators. Also, much attention is paid to the development of a phased implementation of a balanced system of indicators, business performance indicators in the main areas: customers, finance, business processes, personnel. When developing a balanced system of indicators, it is necessary to take into account the factors that have a positive or negative impact, which ultimately contributes to the implementation of the strategic goals of the organization. The introduction of a balanced scorecard is a complex and time-consuming process that requires high knowledge from the top management of the organization. In order for the implementation efficiency to be the highest, it is important to provide for all possible mistakes that can be made at the stage of system implementation.

The Economic Security Assessment of a Road Facility Enterprise

The purpose of the article is to identify areas for improving the activities of a road enterprise based on a comprehensive assessment of the level of economic security of the enterprise.Methods. As research methods, the article uses analysis, synthesis, deduction, induction, system analysis, comparative analysis, strategic management tools.Results. The author proposes an interpretation of the economic security system as a type of functional strategy of an enterprise, substantiates indicators for assessing the level of eco-nomic security of an enterprise. Effectively for practice, the directions of increasing the eco-nomic security of the enterprise have been identified.Scientific novelty. The novelty of the author’s approach lies in the application of the balanced scorecard methodology to the construction of indicators for assessing the level of economic security of an enterprise.

Leveraging the balanced scorecard – a tool for SME advancement

Learning outcomes Illustrate the typical organizational responsibility of a small, medium industry dealing with precision manufacturing products. Introduce a balanced scorecard (BSC) as a concept about the case in the context. Introduce the parameters specific to small and medium enterprise (SME) that could be considered to be part of the key performance indicators. Understand the advantages and disadvantages of using a BSC in SMEs in emerging economies. Case overview/ synopsis Gopika Rani, the recently hired Executive Assistant along with Sanjana M, the Business Development Manager of SEP India Private Ltd. (SEPI), a small medium enterprise, were finalizing a proposal for the forthcoming “India Small Business Excellence Awards 2020.” The proposal was to be considered by the Board of Directors scheduled to meet next week for approvals. Sanjana apprises Gopika on CRISIL’s policy advisory role and its annual awards scheme for SMEs in India. She also details recent modifications announced by the Government of India that had impacted SEPI and was pertinent for filling the application. Gopika understood that SEPI was well-known for the precision and durability of its component, and was poised for growth. The business catered to global suppliers (Tier-1 companies) of the Indian automotive industry that accounted for over 75% and the balance contributed to exports. SEPI’s unique products such as Starter Motor Ignition or the Fuel Vending pump (Automotive) or the non-automotive products such as arrowheads and bowstrings (sports) or the heart-valves (medical) have all the quality certifications. For new product development, customer feedback played a crucial role at all stages of development from prototype to pilot tests. SEPI’s mission “be our customers’ preferred supplier and business partner” drove their personnel and organizational objectives. Also, SEPI could get multiple benefits and be in a strong market position because of this award recognition. Gopika was, however, unclear about SEPI’s business strategies and use of appropriate performance measurement tools. Gopika desired to address the Board of Directors next week on her idea of applying a BSC as a useful “strategic planning and management tool.” The BSC methodology can be used to monitor the performance of SME firms against strategic goals. It can be successfully implemented in smaller organizations because of their simpler set-ups and tendency to arrive at a consensus quickly. However, implementation of BSC within the Indian micro, small and medium enterprises has been scant. Several studies found that the lack of ownership, resistance to change, a scarcity of training and coordination between the departments and lack of funds were among the challenges. The firms also had to make numerous changes to their strategies as business environments evolved. Gopika was convinced that the tool could blend in all the “four perspectives – customer, financial, internal business and learning and growth” and grow. The tool could demonstrate meeting all the prerequisites, “needs to have an exemplary vision, demonstrate outstanding business acumen, use best practices and create a legacy for the others to follow,” that were prerequisites for receipt of this award. Her next project would be to seek approval for the implementation of BSC, a beneficial and apt tool for SEPI. Do you agree with Gopika Rani that BSC is a suitable tool for SEPI? If yes, why? If no, why? Complexity academic level This case study titled leveraging the BSC – a tool for SME advancement is intended for use in the graduate management program (MBA) in subject electives, namely, entrepreneurship, strategy formulation, human resource management or production management. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 3: Entrepreneurship. Supplementary materials Teaching Notes are available for educators only.

A framework for big data integration within the strategic management process based on a balanced scorecard methodology

The purpose of this research is to study the impact of big data initiatives onstrategic management processes. While the majority of strategic management disciplines havehad research dedicated to the use of strategic management theories to understand how big dataaffect organizational performance, the body of research on big data lacks academic work capableof examining how to integrate big data into the strategic management process. The maincontributions of this work are: (1) it highlights the strategic use of big data; (2) it analyses themain frameworks/models proposed by scholars that support the use of big data as a strategicmanagement tool, and outlines this research gap; and (3) it proposes a new framework thatintegrates big data within the strategic management process based on a balanced scorecardmethodology.

Strategic management of competitiveness in regional spatial and sectoral structures under modern conditions

The article summarizes the results of the research conducted and theoretical and methodological approaches in strategizing and strategic management with considering the development principles. The author introduces the model of strategic management of spatial development based on the chaos theory of infl ation in the economic environment. The article also defi nes the notion of “structurizing” as a sort of strategic management. The design of economic structures is considered as the implementation mechanism for the strategy developed according to the balanced scorecard (BSC) methodology. The article reveals the specific features of maintaining the competitiveness of a regional spatial and sectoral structure from the viewpoint of sustainable development concept. The author suggests the SEEIT-method of analysis and synthesis to evaluate the competitiveness level from the spatial and sectoral perspective (analysis) and create competitive advantages of regional spatial and sectoral structure (synthesis). The author’s definition of sustainable development provides the basis for formulating a concept of transient competitive advantage which meets the modern conditions of competition.

A three-system approach that integrates DEA, BSC, and AHP for museum evaluation

This paper proposes to measure the museums performance with a model that combines the Data Envelopment Analysis (DEA) and Balanced Scorecard (BSC) methodologies with a third method, the analytic hierarchy process (AHP), which is often used to support decision making. Starting from the two-stage DEA–BSC model of Basso et al. (Omega Int J Manag Sci 81:67–84, 2018), which integrates DEA and BSC, we explore the advantages to consider also the AHP methodology, with the aim to include the judgement of some museums’ experts on the relative importance of the BSC perspectives in the performance evaluation model. A first approach uses directly the AHP priorities derived from the judgements expressed by the museums’ experts interviewed to determine the weights to aggregate the four BSC performance scores into an overall performance indicator. A second approach uses the judgments of the museums’ experts indirectly to introduce proper restrictions on the output weights of the second-stage DEA model. With this approach, we overcome the problem arising from the dispersion of the preferences within the group of experts, that may heavily affects the first approach. Both approaches proposed in this contribution are applied to the case study of the municipal museums of Venice.

Die Hard: Probability of Default and Soft Information

The research aims to verify whether the credit risk of small and medium-sized enterprises can be estimated more accurately using qualitative variables together with financial information from reports. In our paper, we select qualitative variables within the conceptual framework of the balanced scorecard to assess the credit quality of Italian companies of various sizes, from micro to medium. Data were collected to estimate the company’s resilience following the shock of the financial crisis of 2007–2008. The analysis based on customer size, processes, knowledge, and corporate finance, synthesized with balanced scorecard methodology, allows us to estimate the resilience of companies in a period of crisis. The research highlights the important contribution of qualitative variables for the estimation of credit risk. The implications concern both financial intermediaries and their supervisory functions, and regulators for rating models based on soft forward and countercyclical variables.

Factors Affecting the Use of Balanced Scorecard in Measuring Company Performance

The paper presents the results from the research on the factors influencing the use of the Balanced Scorecard methodology in measuring company performance in the engineering sector. The primary objective of the research was to verify the importance of using non-financial factors in managing businesses in connection to the use of the Balanced Scorecard methodology and to verify the dependence between the use of the given methodology and the lack of human and financial resources for its usage. The research focusing on the given issue was conducted over a period of six months. The research was based on the hypotheses that were verified with statistical methods using the methodology of a Chi-square test. To identify the factors that hinder the usage of the Balanced Scorecard methodology in the addressed enterprises, the method of standard deviation was used. The main result of the research is a finding that there is a statistically significant relationship between the enterprises considering the non-financial indicators and the use of the Balanced Scorecard methodology to be important. This relationship is confirmed also by the calculation using a test with p = 0.0422. The research verified one of the main research goals, i.e., the importance of non-financial indicators in connection to the Balanced Scorecard concept (BSC). Other hypotheses are related to the issue of the lack of human and financial resources. Using the Chi-square test in these cases once again, the study also found out the existence of the dependence between the lack of these resources and the use of the Balanced Scorecard methodology. The final value p = 0.0446 relating to human resources and the value p = 0.0377 relating to financial sources define the barriers as being important in implementing the BSC methodology into corporate practice. These values confirm other research results related to the barriers of using BSC. The presented paper assesses the research results that confirm the importance of using non-financial indicators and define the barriers that hinder this usage. The research contributed to the extension of the knowledge of the BSC concept that we consider being a modern managerial future-oriented tool and supported its implementation in companies so that they could operate within the framework of sustainable development.

Improving managerial decisions in health care sector: application of Promethee II method I n public hospitals

Problems related to lack of financial stability of hospitals, which have a negative impact on the development of health care, gave rise to the need of implementing appropriate effectiveness measurement methods. Thus, the aim of this article is to assess the functioning of public hospitals in Poland between the years 2007-2017. The analysis is based on data reflecting the financial and organisational sphere of individual 321 public hospitals, divided into groups, according to their founding body, in the same time span. The Promethee II method in conjunction with the Balanced Scorecard methodology was implemented. The study allowed not only to distinguish groups of hospitals with the highest level of effectiveness as compared to the group under study, but also to identify the criteria that are most important in shaping it. The application of Promethee II gave the opportunity to assess the functioning of hospitals, as well as to compare their results with the results of leaders.