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1 – 10 of 222R.A. Harvey BSc, CEng, FRAeS and FSS MIMechE
The definition and measurement of Productivity are controversial subjects so an outline of some of the problems that arise and the definitions that are generally considered to be…
Abstract
The definition and measurement of Productivity are controversial subjects so an outline of some of the problems that arise and the definitions that are generally considered to be most acceptable will not be out of place as an introduction. Productivity is a ratio of an output to input; it is therefore somewhat akin to the engineering concept of efficiency, but unfortunately without the accompanying rigour of definition of input and output in energy terms.
Lan Guo, Theresa Libby, Bernard Wong-On-Wing and Dan Yang
The multiple performance measures in strategic performance measurement systems should be selected to represent a set of causally linked strategic drivers and outcomes. The pattern…
Abstract
The multiple performance measures in strategic performance measurement systems should be selected to represent a set of causally linked strategic drivers and outcomes. The pattern of results thus can provide information concerning the proper execution of the strategy (i.e., the performance evaluation role) and the strength of the cause-and-effect linkages assumed by the strategy (i.e., the strategy evaluation role). Unfortunately, managers’ tendency to re-evaluate the strategy when performance falls short of target is low in practice. Possible explanations include motivational and cognitive biases. We experimentally examine two decision aids, an attribution aid, and a decomposition aid, designed to help managers ease these challenges. Study 1 shows the decision aids, individually and in combination, increase managers’ tendency to re-examine a problematic strategy. Study 2 demonstrates the effectiveness of the two decision aids, when used together, under a different pattern of results and among a sample of more experienced managers.
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Chinho Lin, Shu-Fang Ting, Leslie Lee and Sheng-Tun Lin
This study proposes an objective assessment model to evaluate the performance of internal and external capabilities of firms. It facilitates firms to invest appropriate resources…
Abstract
Purpose
This study proposes an objective assessment model to evaluate the performance of internal and external capabilities of firms. It facilitates firms to invest appropriate resources to cultivate the organizational capability necessary to meet the requirements of the performance indicators.
Design/methodology/approach
This study integrates the concepts of resource-based theory, the organizational capability concept, and conduct a performance analysis to the four perspectives of the BSC by implementing the fuzzy set theory and data employment analysis.
Findings
The findings show that the appropriate strategies help allocate available resources and capabilities during the different product life cycle, which provides practical guidelines for firms to achieve sustaining competitive advantage.
Research limitations/implications
The selected factors were focused on four resources and capabilities rather than all possible factors.
Originality/value
An objective assessment model was created based on internal and external competitive performance efficiency in this research field. This model facilitates the ability of the top management to make decisions for resource allocation that will enhance firm's performance.
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The purpose of this paper is to examine the use of the Balanced Scorecard (BSC) in universities. Initially directed toward profit‐oriented businesses, the BSC has since been…
Abstract
Purpose
The purpose of this paper is to examine the use of the Balanced Scorecard (BSC) in universities. Initially directed toward profit‐oriented businesses, the BSC has since been adopted by many non‐profit organisations with seemingly diverse objectives. A number of primarily publicly‐funded universities and institutions, which are part of these universities, also embarked upon this strategic management approach. They soon discovered that the classical BSC approach and, for that matter, a modified approach suited for non‐profit organisations had to be further modified to suit their unique circumstances. As universities struggle to adapt the BSC approach to fit their needs, questions have been raised whether BSC is an appropriate strategic management tool for universities.
Design/methodology/approach
Through a critical review of the discourse surrounding this issue and BSC of 30 universities around the globe, this article examines the use of BSC in universities.
Findings
It was found that concerns regarding suitability of this approach for universities are not only serious but most universities, by nature or circumstances, are ill positioned to mobilise substantial resources, lay the necessary groundwork and develop systems in order to benefit from this initiative. It was found that universities, which did adopt BSC, have diverse expectations, understanding and implementation strategies. Lack of understanding, an unclear success rate, slower new adoptions and subsequent abandonment of this approach by some of the universities suggest that the BSC approach may have failed to meet expectations.
Originality/value
To date little has been written on the use and suitability of the balanced scorecard in universities.
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Oana Alexandra Albertsen and Rainer Lueg
This paper aims to review the literature on the balanced scorecard (BSC) system. The BSC may well be one of the most popular performance measurement systems, but this is not…
Abstract
Purpose
This paper aims to review the literature on the balanced scorecard (BSC) system. The BSC may well be one of the most popular performance measurement systems, but this is not synonymous with successful. The inventors of the BSC, Kaplan and Norton, actually emphasize that a BSC can only really impact the organizational performance if it is linked to the actors’ intrinsic and extrinsic incentives. As BSC has existed for more than 20 years, the authors find it relevant to survey the extant literature which elaborates on the BSC-incentives link within organizations.
Design/methodology/approach
This paper identifies 117 empirical studies from leading academic journals published between 1992 and 2012 and then assesses 30 of these studies, which present the BSC-compensation link within the BSC literature. The authors analyze both research design (authors’ perspective) and the actual findings in the field (organizations’ perspective).
Findings
First, it was found that only 30 of 117 empirical studies have a research design that is comprehensive enough to capture a full BSC as suggested by Kaplan and Norton, and only six of these studies elaborate on the link between the BSC and compensation. Second, extant research lacks valid constructs for the BSC and focuses too much on planning (ex-ante) with the BSC and not sufficiently on evaluation and control (ex-post). Third, the authors demonstrate that empirical BSC literature relies very strongly on field research in small and medium enterprises compared to similar research. Overall, the authors claim that the “relevance” of the BSC remains unproven.
Originality/value
The authors synthesize the empirical BSC literature and derive a future research agenda.
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Albert H.C. Tsang, Andrew K.S. Jardine and Harvey Kolodny
Performance measures should be linked to an organization’s strategy in order to provide useful information for making effective decisions and shaping desirable employee behaviour…
Abstract
Performance measures should be linked to an organization’s strategy in order to provide useful information for making effective decisions and shaping desirable employee behaviour. The pitfalls relating to the indiscriminate use of common maintenance performance indicators are discussed in this paper. It also reviews four approaches to maintenance performance measures. The value‐based performance measure evaluates the impact of maintenance activities on the future value of the organization. The Balanced Scorecard (BSC) provides a framework for translating strategy into operational measures that collectively capture the critical requirements for sustaining the organization’s success. System audits are the tool for measuring organizational culture, which in turn determines the appropriate approach to the organization of maintenance functions. The operational efficiency of an organization’s maintenance function can be benchmarked with those of its counterparts in other organizations by using Data Envelopment Analysis (DEA). Among these approaches, the one which builds on the BSC embraces the design principles of a good performance measurement system. To smooth the adoption of the BSC approach to managing maintenance operations, a related research agenda is proposed in the concluding section.
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Claudio de Araujo Wanderley, John Cullen and Mathew Tsamenyi
The Balanced Scorecard (BSC) possesses an inherent duality, as it has been described as a carrier of institutions (i.e. the BSC is a “management ideology” or “mode of thinking”…
Abstract
Purpose
The Balanced Scorecard (BSC) possesses an inherent duality, as it has been described as a carrier of institutions (i.e. the BSC is a “management ideology” or “mode of thinking”) and a flexibly interpretive boundary object at the same time. This study examines how this inherent duality of the BSC may influence the unfolding rationales surrounding its implementation and use.
Design/methodology/approach
Empirical support for this investigation is gathered from an in-depth field study. The focal firm is a Brazilian electricity distribution company that transitioned from state to private ownership under hyper-regulation, and whose holding company experienced strategic and structural changes.
Findings
The study identified a misalignment between the characteristics of the firm (e.g. organizational logics) and the perceived BSC features. This misalignment initially produced tensions and institutional logics complexity for the organization forcing the BSC implementers to rationalize it to provide meaning regarding its implementation in the firm. The findings also show why and how the promoters of the BSC conducted its “strategy of translation” in order to disentangle and reassemble both the material and symbolic components of the BSC to facilitate its implementation and use. It was found that promoters of the BSC engaged in contextualization work, which featured two main actions: a combination of coupling and selective decoupling and a change of meaning.
Originality/value
This paper advances current understanding of the process of the unfolding rationales surrounding management accounting innovations (e.g. the BSC). The study shows that the BSC unfolds in more complex, time-related and simultaneous ways than has previously been reported in the literature. Moreover, the paper contributes by explaining how the management's rationales, relating to their historical understanding, perception of legitimation needs and social skills, contributed to the continuous unfolding of the BSC. In addition, four potentially interesting areas for further research were identified.
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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Sungbum Park, Heeseok Lee and Seong Wook Chae
Most empirical balanced scorecard (BSC) studies have shown a tendency to wrongly employ reflective indicators instead of the more theoretically suitable formative indicators…
Abstract
Purpose
Most empirical balanced scorecard (BSC) studies have shown a tendency to wrongly employ reflective indicators instead of the more theoretically suitable formative indicators. However, formative indicators are difficult to apply due to the lack of statistical software support and a standardized model testing method. The paper aims to discuss these issues.
Design/methodology/approach
This study empirically compares the reflective and formative measurement method with standardized model comparison criteria. After collecting 217 valid questionnaires from companies in South Korea, the authors applied a structural equation modeling technique to analyze the data.
Findings
The result shows that the formative measure provides greater validity for the corporate performance measurement using BSC. Further, this study shows the indicators’ relative influence on each BSC perspectives using the formative measure.
Practical implications
This study proved the usefulness of the formative measure analysis method and suggested its practical use, focusing on the indicators most useful in developing corporate strategies. In addition, the authors showed that formative indicators could be used in the corporate environment by overcoming the limitations of conventional studies that were confined to causal relationships with latent variables.
Originality/value
This study may be the pioneering work that compares formative and reflective indicators simultaneously, addressing the usefulness of formative measurement and its application validity in the existing empirical studies using reflective measurements.
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The purpose of this study is to review and understand the dimensionality of hypercompetition, factors causing a hypercompetitive environment and the consequences of…
Abstract
Purpose
The purpose of this study is to review and understand the dimensionality of hypercompetition, factors causing a hypercompetitive environment and the consequences of hypercompetition on markets. Thereby, the purpose of the study is to cover the main contributors in the research field of hypercompetition and explore their findings and different views on hypercompetition.
Design/methodology/approach
Systematically review 131 conceptual and empirical studies published or presented at a conference in the past 25 years, with the focus on the definitions, causes and consequences (or presumed effects) of hypercompetition. In the paper, I follow the well-known systematic literature review method by Tranfield et al. (2003).
Findings
The contribution of the study is to advance the knowledge of researchers and managers, in such a way that it becomes easier for them to select relevant variables to measure hypercompetition and identify strategies for gaining temporary competitive advantages in hypercompetitive environments. The construct of hypercompetition required a consolidation of commonalities in the definitions and characteristics used by scholars, to ensure that proper assumptions and variables are being used to measure hypercompetition in future research. Several ways to measure the effects of hypercompetition on firms, industries and individuals have been proposed, but the field still lacks of a clear definition on how to directly measure the construct.
Practical implications
In this paper, I highlight three managerial implications of hypercompetition as follows: action-based strategy, the determinants of hypercompetition and the importance for managers of accurately establishing their firm’s competitive situation.
Originality/value
Previous reviews in the area have either focussed on specific components or effects of hypercompetition. The present study collectively takes into consideration the definitions, causes and consequences of hypercompetition on firms, industries and individuals. The contribution of the paper is to indicate future opportunities and challenges within research on hypercompetition.
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