Literature Review Of Studies On Balanced Scorecard Accounting Essay

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A study conducted by Kittiy Yongvanich and James Guthrie (2009) provides a descriptive analysis among Thai stock exchange companies in the using of BSC and how BSC assess the performance effect. In this study, questionnaire had been given and the result will be used to find out whether the proportion and the way BSC being used are significantly correlated with financial performance. Completed questionnaires were returned from 123 companies, yielding response rate of around 34 percent. Of these companies, 15 and 34 companies respectively had applied BSC in individual business units and extensively for entire companies. The results of this study showed that most of companies in Thailand had used the BSC to get the benefits of it and around 33 percent of Thai stock exchange companies that had applied BSC did not employ cause-and-effect relationships. It is found that there is no correlation between types of BSC usage and company size.

By using several research questions, Dorothea Greiling (2010) had found that most of the non-profit organizations still need more experience and time if they wish to fully use the benefit of the balanced scorecard. Most of the interviewees have only a measurement system with an unbalanced distribution of financial and non-financial performance measures and lack cause-and-effect linkages as well as compensation links at all level. In addition, the interviewees found that by using balanced scorecard, they could benefits in the area of strategy implementations, build up a performance measurement system and supporting organizational change processes. However, limitations to introduce pay-for performance systems, measuring problems and obstacles originating from challenges in the area of clear organizational success measures were seen as major obstacles of balanced scorecard implementation. This study had been taken based on a sample of 20 German non-profit organizations in the field of social services and aimed to understand several issues in implementing balanced scorecard system in German non-profit organizations.

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Wanncherng Wang (2005) conducted a study to analyze the value relevance of the BSC tools for equity valuation. This study was conducted based on empirical relationship between as set of Balanced Scorecard indicators and the exchange ratios for a sample of 32 mergers and acquisitions of 14 financial holding companies. Data were gathered from machine-readable database, annual financial reports, industry reports and professional magazines; and covered 2 years from year 2000 to 2002. From this study, Wang found that the Balanced Scorecard indicators explain as high as 90 percent of the exchange ratios variations. Consistent with the spirit of Balanced Scorecard, the measurement of non-financial performance play a critical role in the valuation of financial institutions, incrementally increasing about 40 percent of explanatory power.

A study by Nigel Evans (2005) was carried to understand the balanced scorecard approach to strategy and its benefit for the international hotel industry. This study was carried by undertakes wide-range literature review which concentrates on strategic implementation and the balanced scorecard approach, which then will be compared and contrasted with evidence of practice derived from a survey of hotels in Northeast England. From the research that had been taken, it found that a wide variety of measures were currently being used and that many hoteliers were using measures from all four of the category groupings identified in the balanced scorecard framework.

Rozhan Othman (2006) had taken a chance to conduct a research to show an analysis of the influence of the development of the casual model of the strategy in the using of the BSC in Kuala Lumpur, Malaysia. This study also aims to find out the differences in Balanced Scorecard implementation of users who developed a casual model in their strategy and those who did not. Data was collected by using mailed survey. From this study, results found that those organizations that did not establish a casual model of balanced scorecard may face specific problems more than those who did.

Ali Assiri, Mohammed Zairi and Riyad Eid (2006) had an opportunity to carry out a study to find out a comprehensive set of potential factors that influence the successful implementation of balanced scorecard. This study is based on holistic view and includes a comprehensive analysis of the relevant literature and an analysis of case studies of balanced scorecard implementations in organizations presented in the literature, and an explanatory global survey of 103 organizations in 25 countries that have already adopted or are in the process of adopting balanced scorecard. From this study, the found 27 key success factors which are expected to determine the implementation of balanced scorecard which then divided into three levels: dominant, main, and supporting factors.

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Research had been taken by Adrien Chia, Mark Goh and Sin-Hoon Hum (2009) to examine what senior supply chain executives measure and how they perceive performance measurement from a balanced scorecard perspective. By using a survey designed from the four perspectives of the balanced scorecard framework is conducted on senior executives involved in the supply chain functions of client firms, and those executives from the logistics service provider industry. From this research, it is found that despite the need to provide a balanced approach to performance measurement, firms remain focused on traditional financial measures. In addition, from a supply chain perspective, the non-tangible measures such as customer satisfaction are most measured. On-time delivery and customer satisfaction are included inside key logistics performance indicators. These findings are based on a sample size of 113.

From a journal that titled "Balanced Scorecard: A Rising Trend In Strategic Performance Measurement", Khim Ling Sim and Hian Chye Koh (2001) had conducted a research which based on information collected from 83 electronics companies in the USA. From the research, it is found that those companies that have linked their corporate goals to their performance measurement systems like balanced scorecard will perform better than those who are not.

A research conducted by Xiao-Yun Chen; Kazunobu Yamauchi and Ken Kato; Akio Nishimura and Katuski Ito (2006) to check the usefulness of using the balanced scorecard to measure performance in two hospitals that located in two different countries which are in China and Japan. By using the balanced scorecard framework, a comparative hospital performance measurement model was set up to compare those two hospitals. As the result, it is found that balanced scorecard was effective to detect existing problems and find out some opportunities for improvements. In addition, the hospitals' contribution to performance improvement of Japan and China total health system had been revealed by balanced scorecard.

Ignacio Urrutia and Scott D. Eriksen (2005) had conducted a study to answer the question of whether the balanced scorecard can be used in hospital, one of several sectors of non-profit organizations. This study was conducted by using a study case of a private Spanish hospital, concentrating in psychiatric patients, which is owned by a religious congregation and utilizes a very primitive and informal information system. From this study, it concluded that balanced scorecard is applicable to any type of organization and it must be modified to include a mission perspective, thus supporting balanced scorecard system for non-profit organizations.

A research had been conducted by G. Manville (2006) in a not for profit small and medium sized enterprise (SME) to investigate the implementation of a performance management system using balanced scorecard. This was a case based research to explore the ideas of two management stakeholder groups. From this research, it was found that balanced scorecards can be used within a Small and Medium Enterprise context. However, due to the heavily regulated nature of the organization, the motivations for the adoption of the balanced scorecard tool were both internal and external.

Laurie L. Burney and Nancy J. Swanson (2010) had conducted a study based on survey data gathered from accounting managers in balanced scorecard firms, focuses on the effect of the balanced scorecard on an individual manager's job satisfaction and to understand the balanced scorecard's effectiveness within firms. As a result, it is found that there is a good relation between satisfaction of job and managers' perceptions of the strength of the connection between organization strategy and performance measures. It is assumed that managers are becoming better informed about the actions wanted by the firm when they use a balanced scorecard that establishes a strong connection with firm's strategy; therefore, they will find that they would experience higher levels of job satisfaction. Moreover, this study had found that the benefit of non-financial measures in balanced scorecard tool is related to manager's job satisfaction positively and may support them in making a decision in future times.

Hsin Hsin Chang (2008) had an opportunity to carry out a study to evaluate supply chain management (SCM) performance using the balanced scorecard to thereby assess the business performance of many Taiwan's industries that have implemented SCM. This study was conducted by using case study; research model and hypotheses are modified according to the case study findings. In addition, questionnaire is also made in the survey forms to collect and analysis data. From this study, it is found that companies use varying degrees of SCM integration. Data analysis supports a positive correlation between SCM integration and balanced scorecard and a direct correlation between SCM integration and each balanced scorecard dimension.

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A research had been taken by Manoj Aanand, B S Sahay, and Subhashish Saha (2005) to identify the extent of balanced scorecard used by corporate in India and investigate whether Indian firms use all the four perspective of balanced scorecard which are customer, financial, internal business, and learning and growth. This research had been conducted based on survey using questionnaires to 500 private sector companies and 75 most valuable public sector units (PSUs). From this study, they had found that financial perspective was the most important perspective followed by customers' perspective, shareholders' perspective, internal business perspective, and learning and growth perspective. Moreover it is found that balanced scorecard usage rate is 45.28 per cent in corporate India compared to 43.90 per cent in the US. The most critical issue in the implementation of the balanced scorecard in India was in putting 'weightage' to different perspective and in establishing cause and effect relationship among these perspectives. Lastly, most companies claimed that the use of the balanced scorecard in the organization has led to the identification of cost reduction opportunities which has resulted in better performance in the bottom line.

James Norrie and Derek H. T. Walker (2004) had conducted a study to discuss ways that project managers can use performance measurement tools to improve the operational performance of their project teams like balanced scorecard. This study had been conducted by project teams at a large North American global telecommunications organization by doing comparison and survey of two projects. This study found that balanced scorecard is a useful tool to be used as a tool to improve the project management effectiveness. It is also found that balanced scorecard is a powerful tool to establish on-strategy project delivery.

Pang-Lo Liu and Chih-Hung Tsi (2007) did a research which utilized the balanced scorecard implementation to find out the effects of the introduction of a knowledge management system on operating performance. This research had been conducted by designing a questionnaire which then given to 560 major Taiwanese hi-tech companies' managers and using four perspectives of the balanced scorecard to measure operating performance among these high-tech companies. From the research, it showed that after knowledge management being introduced and implemented to the organization there was an increase in operating performance. Moreover, it was found that there was a 5.1 to 10% performance increase when performance was examined from the financial, customer, and internal business process perspectives; and a 10.1 to 15% increase when it was examined by learning and growth perspective.