Balanced Scorecard Strategy And Performance Measurement: Concept & Analysis

Author: Nurul Fadly Habidin
Publisher: UKM Press
ISBN: 9789672388562
Weight:
Year: 2020
Page: 78 
Price: RM20

Balanced Scorecard (BSC) not only serves as a tool for performance measurement but is aligned with organizations that directly translate organizational strategies into action-oriented plans. Previous research has suggested more studies be made to explore and investigate the relationship between Strategic Control Systems (SCS) and performance in other sectors and countries. This is because the implementation of SCS helps managers to manage the strategic plans, monitor, and control the performance result, encourages effective communication and discussion, and provides a reward-based system, and feedback with a quick action approach that aligns with the organizational goals. Thus, the aim of this study is to develop a BSC model and tool that incorporates SCS and Organizational Performance (OP). A survey through a questionnaire was conducted to determine the implementation of SCS and OP. The structural Equation Modeling (SEM) technique was adopted to analyze the data gathered from the survey. 

Exploratory factor analysis, reliability analysis, and confirmatory factor analysis for testing the construct validity, test for reliability, and model measurement were carried out. From the findings of the survey, it was shown that SCS plays an important role to improve OP. Analytic Hierarchy Process (AHP) methodology was used in developing a Strategic Balanced Scorecard Tool (SBST). This tool was developed by using a system based on Excel. SBST as a benchmark to serve as a guide, and reference resources to implement SCS and OP and the SBST which in turn assists in the strategic decision-making process in the assessment of the business process. Hence, this book produces implications for theory and management and provides a practical guide and tool to enhance OP. This is holistic research that has undergone detailed methodology and analysis, case studies, and contributes to the limited existing literature on the development of the structural relationship between SCS and OP.