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Exploring the status and effects of balanced scorecard adoption in the non-western context: Evidence from the Middle East

Fauzia Jabeen (College of Business Administration, Abu Dhabi University, Abu Dhabi, UAE)
Mohamed Behery (Faculty of Commerce, Menoufia University, Menoufia, Egypt)

Journal of Management Development

ISSN: 0262-1711

Article publication date: 11 September 2017

814

Abstract

Purpose

The purpose of this paper is to explore the status of corporate performance management (PM) in the Middle Eastern context, represented by the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA). In addition, the current study investigates the effects of the adoption of the balanced scorecard (BSC) and aims to explore the impact of the BSC on workplace attitudes and behaviors, as shown by accountability, inspiration, and motivation.

Design/methodology/approach

Due to the limited knowledge about the subject matter and the limited number of companies adopting the BSC in the Middle East, this study has adopted a descriptive approach to verify the significance of the BSC and to explore the causal relationship amongst the performance perspectives and the different dimensions of the BSC. The sample was drawn from five major business sectors in the UAE and KSA.

Findings

The results indicate that the BSC indicators are effective tools to evaluate and reflect on corporate performance. The concept of the BSC is considered good practice in the UAE and the KSA. Because of the concept’s compatibility with the local culture and business practices, it can be used to balance shareholder and stakeholder demands.

Research limitations/implications

One of the main limitations of this study is that the sample is drawn from only two countries from the Middle East and, hence, cannot be generalized.

Originality/value

This study is one of the first attempts to explore the status of the corporate PM systems in a non-western context using a BSC technique created and typically applied in the western world. In addition, this study is considered a valuable attempt at exploring the effects of the adoption of this technique on an organization’s performance.

Keywords

Citation

Jabeen, F. and Behery, M. (2017), "Exploring the status and effects of balanced scorecard adoption in the non-western context: Evidence from the Middle East", Journal of Management Development, Vol. 36 No. 8, pp. 1063-1075. https://doi.org/10.1108/JMD-05-2016-0077

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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