The Link Between Perception of BSC Implementation and Corporate Strategy and its Impact on Performance
Concordia University, Quebec - Department of Accountancy
August 16, 2010
AAA 2011 Management Accounting Section (MAS) Meeting Paper
Behavioral aspects and attitudes toward the balanced scorecard (BSC) could be a determinant factor in the success of BSC implementation. In the study we examine the match between factors affecting employee buying into the BSC and corporate strategy and whether a fit between them is necessary to maximize the benefits of BSC implementation by enhancing corporate performance. Conforming to our expectations, we found that firms that carefully planned their strategic objectives were more likely to have a positive impact on their employees’ perception of the BSC. A deliberate strategy - or planned strategy - as defined by Mintzberg (1978) is associated with higher levels of BSC awareness, perception of BSC ease of use, perception of BSC usefulness, and intention to use the BSC. We also found that higher perceptions of BSC ease of use were positively associated with aspects of a firm’s performance, such as from the customer, internal processes, and learning and innovation perspectives. Hence, we conclude that firms implementing the BSC need to take into consideration that the successful implementation of the BSC requires careful planning to ensure that the firm’s strategic objectives are well formulated, fitted with BSC measures, and effectively communicated to BSC users.
Number of Pages in PDF File: 32
JEL Classification: M40, M46, M19
Date posted: August 18, 2010