the downside of the balanced scorecard a case study from norway

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The Downside of the Balanced Scorecard: A Case Study from Norway

Antonsen, yngve, journal article.

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The downside of the Balanced Scorecard: A case study from Norway

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Balanced Scorecard: Today’s Challenges

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• First Online: 28 March 2017
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• Jorge Gomes 19 &
• Mário Romão 19  

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 569))

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• World Conference on Information Systems and Technologies

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In today’s global landscape organizations are pressured to develop new capabilities such as flexibility or expertise to respond to the ever-changing technology, competition, and customer preferences. Companies cannot be competitive or successful if their business and information systems and technology (IS/IT) strategies are not aligned. Nowadays, with the growing importance of intangible assets, performance measurement tools must be able to capture this new and important reality. Measuring organizational performance is a difficult and ongoing challenge for managers. Balanced Scorecard (BSC) is a powerful tool that gives a fast, but comprehensive view of the business including operational measures on customer satisfaction, organization’s innovation, activities improvement, as well as financial measurements. This study empirically examines how the BSC has been applied in practice and whether different BSC designs result in varying performance outcomes. In this paper the authors address the BSC and promote the discussion about the strengths and the limitations, underlining the latest developments and future research.

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Balanced Scorecard

Balanced scorecard: trends, developments, and future directions

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Acknowledgments

The research work where this article is based on, has been supported by FCT - Fundação para a Ciência e a Tecnologia, in the context of financed projects under the Reference UID/SOC/04521/2013.

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ISEG, Rua Miguel Lupi, 20, 1200-781, Lisboa, Portugal

Jorge Gomes & Mário Romão

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Correspondence to Jorge Gomes .

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DEI/FCT, Universidade de Coimbra, Coimbra, Baixo Mondego, Portugal

Álvaro Rocha

Nova IMS, Universidade Nova de Lisboa, Lisboa, Portugal

Ana Maria Correia

College of Engineering, The Ohio State University, Columbus, Ohio, USA

Hojjat Adeli

DSI/EEUM, Universidade do Minho, Guimarães, Portugal

Luís Paulo Reis

DIMES, Università della Calabria, Arcavacata di Rende, Italy

Sandra Costanzo

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Gomes, J., Romão, M. (2017). Balanced Scorecard: Today’s Challenges. In: Rocha, Á., Correia, A., Adeli, H., Reis, L., Costanzo, S. (eds) Recent Advances in Information Systems and Technologies. WorldCIST 2017. Advances in Intelligent Systems and Computing, vol 569. Springer, Cham. https://doi.org/10.1007/978-3-319-56535-4_64

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DOI : https://doi.org/10.1007/978-3-319-56535-4_64

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Balanced Scorecard: Is It Beneficial Enough? A Literature Review

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Purpose of the Research : This study reviews and evaluates the development of research on the balanced scorecard.

Design/ Methodology/ Approach : This is a literature study of71 articles from 21 Scopus Q1 indexed journals. The issuance year was ignored, yet the search area was restricted to business, management, and accounting. The analysis is grouped into three parts, namely BSC in private sectors, BSC in public sectors, and criticism for BSC. In private sectors and SMEs, the theme is divided into benefits of BSC, implementations of BSC, limitations and other tools to improve BSC.

Research finding : Although a large number of academics are sceptical about the relationship between BSC and organisational outcomes, BSC is widely used. Practitioner-oriented literature shows that it has useful values especially in improving organisational performance and strategy attainment. Based on the findings of empirical results in the private sector, SMEs, and the public sector, it can be inferred that the implementation status of the balanced scorecard shows a high level of success and minimal failure.

Theoretical contribution/ Originality : The BSC has limitations, yet these findings show that BSC is beneficial enough.

Practitioner/ Policy implication : The BSC remains worth considering for a performance management system.

Limitation/ Implication : This literature review is limited to specific quality ratings of the academic journals.

Type of article : Literature review

Keywords : Balanced Scorecard, Kaplan and Norton, Management Accounting, Literature Review

JEL Classification : M21, M41

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