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For many years management accountants have been involved in the design of information systems for decision-making. To be effective in system design, accountants need pertinent and reliable performance measures within a valid framework. The Balanced Scorecard (BSC) has received a great deal of attention as a comprehensive model of performance that takes into account both financial and non-financial measures. This paper examines the empirical reliability and validity of the BSC framework and its associated measures. With reference to content validity, internal consistency reliability, and factorial validity, results show that BSC, with measures grouped into its four dimensions, is a valid performance model.

Previous studies have called for better reliability and validity of BSC measures. The present study may help in the design and implementation of BSCs in business units by adding robustness to the BSC framework, and by suggesting a set of valid measures associated with the four BSC dimensions. The results may lead to reduced costs of BSC design and implementation, and enhanced consistency of future studies of the BSC.

The paper aims to discuss how to integrate the Balanced Scorecard (BSC) with intellectual capital (IC); and handle the issues of creation, formation, measurement, reporting and even management of strategic intellectual capital (SIC).

The paper adopts a case study to illustrate the integration between the BSC and IC, and to handle the significant issues related to SIC. The case company is a car dealership in Taiwan, which is one of the largest automobile dealerships in Taiwan. In addition, according to the firm's management philosophy, the company treats customers as the bosses and employees as the precious assets to the company. The company also treats quality as one of its important competitive advantages, hence implementing ISO 9002 in 1999.

The main findings of this study are: BSC can lead the creation, formation and measurement of SIC and strengthen the reporting for SIC; BSC's financial, customer, internal process, and growth and learning perspectives can strengthen the management of IC; and, all in all, how to integrate IC and BSC together for implementing a company's strategy effectively and maximize the value of a company deserves further discussion.

Based on this study, companies need to integrate BSC to IC in order to strengthen the creation, formation, measurement, reporting and management of SIC. While BSC directs IC, then the value of SIC can be improved.

Based on the literature review, the authors note that BSC is an important tool to measure and manage IC. However, no research illustrates how BSC directs the creation, formation and management of IC. In this study the authors fill this gap and introduce a case to illustrate how BSC affects the creation, formation and measurement, and even reporting of IC.

The purpose of this paper is to show how the use of Strategy Maps substantially improves the implementation success of balanced scorecards (BSC). The BSC is supposed to translate strategy into action. Strategy maps support this by showing cause-and-effect chains. But what does this mean for strategy execution in practice? To achieve better BSC implementations, the author uncovers pitfalls and names the remedies.

The author summarizes the most important findings from initially over 1,000 studies that have dealt with the BSC from 1992 to 2012.

BSC implementations that use a sophisticated Strategy Map appear to be successful. Strategy maps foster a better understanding of the BSC among employees, create greater commitment and less resistance and are superior to the BSC itself in communicating how to achieve strategic goals. Also, strategy maps facilitate managers’ evaluation of the relevant environment. Nevertheless, the common measure bias is a usual pitfall: top managers have a tendency to use their own strategic targets as a yardstick for lower-level employees.

This paper helps managers understand the most recent developments on strategy maps. In particular, the author highlights that causalities do not exist in organizations in the same way as there are “laws” in physics. Instead, organizations need to customize their BSC to their way of doing business.

The purpose of this research is to show a preliminary examination of the effects of the development of the causal model of the strategy in the implementation of the Balanced Scorecard. Studies on the Balanced Scorecard adoption show that many organizations that adopted the Balanced Scorecard did not develop a causal model of their strategy. The study seeks to examine the differences in Balanced Scorecard implementation of adopters who developed a causal model of their strategy and those who did not.

Mailed survey was used to collect the data.

It was found that Balanced Scorecard adopters who did not develop a causal model of their strategy experienced specific problems more than those who developed a causal model of their strategy. It affected the outcomes and ease of implementation of the Balanced Scorecard.

The small number of responses obtained in this study due to the relatively recent adoption of the Balanced Scorecard in Malaysia limits the generalizability of this study. However, it does provide insights on the hypotheses to be examined in future studies.

The findings of this survey suggest that the successful implementation of the Balanced Scorecard requires that organizations develop and articulate a causal model of their strategy.

This study is probably the first attempt to examine the role of causal model development in effective implementation of the Balanced Scorecard.

To examine the value relevance of the Balanced Scorecard (BSC) for equity valuation.

The investigations are based on the empirical relationships between a set of BSC indicators and the exchange ratios for a sample of 32 mergers and acquisitions (M&As) of 14 financial holding companies. Data sources are collected from machine‐readable database, annual financial reports, industry reports and professional magazines. The study period covers years 2000‐2002.

First, the BSC indicators explain as high as 90 percent of the variations of the exchange ratios. Consistent with the spirit of BSC, non‐financial performance measures play an important role in the valuation of financial institutions, incrementally improving about 40 percent of explanatory power. Second, empirical evidence shows that acquiring firms outperform the acquired firms and target firms outperform the non‐target firms in terms of BSC measures.

The small sample size and the limited set of the BSC indicators may constrain the applicability of the results to other industries and time periods.

The empirical results provide a concrete and practical framework for the valuation of intangibles and the application of the BSC in M&As.

The study examines the BSC as a framework for the valuation of intangibles. The empirical results support the usefulness of the BSC in equity valuation and further corroborate a number of extant theories in the M&A literature.

During the 1990s, Italian healthcare organisations (HOs) underwent a process of corporatisation, and the most innovative HOs introduced the balanced scorecard (BSC) to address the need for broader accountability. Currently, there is a limited understanding of the dynamics and outcomes of such a process. Therefore, this study aims to explore whether the BSC is still considered an effective performance management tool and analyse the factors driving and hindering its evolution and endurance in public and non-profit HOs.

We conducted a retrospective longitudinal analysis of two pioneering cases in the adoption of the BSC: one in a public hospital and the other in a non-profit hospital. Data collection relied on accessing institutional documents and reports from the early 2000s to the present, as well as conducting semi-structured interviews with the internal sponsors of the BSC.

We found evidence of three main categories of factors that trigger or hinder the adoption and development of the BSC: (1) the role of the internal sponsor and professionals’ commitment; (2) information technology and the controller’s technological skills; and (3) the relationship between the management and professionalism logics during the implementation process. At the same time, there is no evidence to suggest that specific technical features of the BSC influence its endurance.

The paper contributes to the debate on the key factors for implementing and sustaining multidimensional control systems in professional organisations. It emphasises the importance of knowledge-based assets and distinctive internal capabilities for the success of the business. The implications of the BSC legacy are discussed, along with future developments of multidimensional control tools aimed at supporting strategy execution.

This paper aims to (1) identify the different performance drivers (lead indicators) and outcome measures (lag indicators) investigated in the literature concerning the four balanced scorecard (BSC) perspectives in operations management (OM) contexts and (2) understand how performance drivers and outcome measures (and substantiated perspectives) are related.

We undertake a systematic literature review of the BSC literature in OM journals. From the final sample of 40 articles, performance drivers and outcome measures have been identified, and the relationships amongst them have been synthesised according to the system dynamics approach.

Findings show (1) the most relevant performance drivers and outcome measures within each BSC perspective, (2) their relationships, (3) how the perspectives are linked through the performance drivers and outcome measures and (4) how the different measures relate systemically. Accordingly, four causal loops amongst identified measures have been built, which – jointly considered – allowed for the creation of a dynamic strategy map for OM.

This study is the first one that provides a comprehensive and holistic view of how the different performance drivers and outcome measures within and between the four BSC perspectives in OM relate systemically, increasing the knowledge and understanding of scholars and practitioners.

In managerial accounting courses, students lacking business experience find the balanced scorecard (BSC) an inherently difficult topic to understand. Students may lack an understanding of business strategy, the BSC's perspectives, and the measures that a BSC uses to report performance. This chapter aims to assist instructors who teach the BSC by developing an analogy to a resume, which is a familiar concept to students. The analogy draws upon similarities between the BSC and a well-constructed resume: a cohesive strategy, multiple perspectives or areas, and multiple types of measures for each area. In using this approach, the instructor guides students through the process of viewing a resume as a vehicle for conveying a job-search strategy, similar to the way a BSC communicates an organization's strategy. Thus, students can apply their knowledge of the familiar (their own resumes) to the unfamiliar (the BSC). The chapter provides implementation guidance and results of student surveys. Our students responded positively to the exercise, saying that they learned the basics of the BSC, and even found the exercise enjoyable.

Since the introduction of balanced scorecard by Kaplan and Norton in 1992, it garnered considerable research and practice attention across disciplines. Using bibliometric analysis, this study examines trends in balanced scorecard research in last 20 years and identifies future areas of research.

The Web of Science database was used to extract research papers from the 2003 to 2023 period with “Balanced Scorecard” as topic. The final sample consisted of 445 articles. Trends and patterns were analyzed using bibliometric analysis through research profiling and thematic analysis.

The findings reveal that BSC, spanning across disciplines, including business and operations, has enriched the theory and practice of BSC research. Analytical and survey methods were more prevalent than primary studies. Scholars from the USA and the UK have made noteworthy contributions to balanced scorecard research. Emerging themes include integrating human resources, sustainability, subjectivity in performance evaluation and non-financial performance indicators in BSC for better strategic decision-making.

The study would inspire researchers to generate new research questions and hypotheses and help in identifying gaps in the current knowledge base and areas where further investigation is needed. Managers would gain useful insights into performance management by studying the BSC research evolution to find a fit for modern-day industry needs.

The authors’ contribution fills the void by providing useful account of extent research over last 20 years using bibliometric analysis and motivate future research directions.

This study examines the impact of different Balanced Scorecard (BSC) formats (table, graph without summary measure, graph with a summary measure) on various decision outcomes: performance ratings, perceived informativeness, and decision efficiency.

Using an original case developed by the researchers, a total of 135 individuals participated in the experiment and rated the performance of carwash managers in two different scenarios: one manager excelled financially but failed to meet targets for all other three BSC perspectives and the other manager had the opposite results.

The evaluators rated managerial performance significantly lower in the graph format compared to a table presentation of the BSC. Performance ratings were significantly higher for the scenario where the manager failed to meet only financial perspective targets but exceeded targets for all other nonfinancial BSC perspectives, contrary to the usual predictions based on the financial measure bias. The evaluators reported that informativeness of the BSC was highest in the table or graph without summary measure formats, and, surprisingly, adding a summary measure to the graph format significantly reduced perceived informativeness compared to the table format. Decision efficiency was better for the graph formats (with or without summary measure) than for the table format.

Ours is the first study to compare tables, graphs with and without a summary measure in the context of managerial performance evaluations and to examine their impact on ratings, informativeness, and efficiency. We developed an original case to test the boundaries of the financial measure bias.