The determinants of implementation stages of balanced scorecard

Abstract

Traditional performance measurement systems are featured by their reliance on financial metrics with little attention paid to other aspects of performance and the linkage between measures and strategy. A new approach to performance measurement, the Balanced Scorecard (BSC), was introduced in recent years. This paper examines the determinants of the implementation of BSC and investigates whether the determinants vary with the implementation stages. One hundred and fifty-seven responses obtained from a questionnaire survey were analysed. The results show that CFO's involvement, participation by different departmental managers, top management support and organisation size are significantly correlated with the BSC implementation stages. In addition, the results also reveal that the determinants vary with the implementation stages. Limitations and implications for research and practice are also discussed.