Academic journal article Academy of Strategic Management Journal

Balanced Scorecard Visited Taiwan Firms

Academic journal article Academy of Strategic Management Journal

Balanced Scorecard Visited Taiwan Firms

Article excerpt


There are more exploration studies in academy to use the skill of "Balanced Scorecard" (BSC), but there is less experimental study to explain how BSC affects the performance of different scales enterprises. To construct the implementation structures to improve enterprise performances, ten management practices that constitute the BSC concept are used to examine the implementation performances of this system through questionnaire. The results of this study show that implementation differences exist between large and small manufacturers in Taiwan. Over all, the findings could suggest that specific BSC management practice(s) implementation could be emphasized in order to achieve better performance vary on different manufacture size and different countries.


Most enterprises have set up plenty of plans and strategies so as to achieve their goals and perspectives (Berman, 1998). However, they are mostly at a loss as how to implement these strategies into practice (Grady, 1991) Most organizations and companies use traditional financial scorecards such as the Balance Sheet and Income Statements to drive their companies. With the emergence of the information era, today's decision-makers have, however, found various revolutionary non-financial drivers to enhance their measurement system in their strategic management. The Balance Scorecard (BSC), that was published in 1992 (Kaplan & Norton, 1992) and has been popular in developed countries, uses such drivers and measurements to achieve their corporate targets.

The BSC is based on the vision and strategy of an organization or company. It varies from companies to companies. Using certain identified drivers in the form of key performance indicators (KPIs), managers use them to navigate their respective companies against complex environs by using state-of-the-art software to achieve their respective goals, particularly in the following areas: Customer satisfaction, Internal business process, Innovation and learning, and Financial objectives. The companies around the world that adopted this implement have made solid, massive progress in recent years, which has made the balanced scorecard become a worldwide useful tool in various enterprises (Chow, Hadda & Williamson, 1997; Clarke, 1997; Hoffecker & Goldenberg, 1994; Kaplan & Norton, 1996; White, 1999).

Although the center of manufacturing in the world is gradually moved out from Taiwan, the successful experiences of Taiwan firms are still worthily referenced by the enterprises worldwide. This research analyzes the manufactures in Taiwan according to the scales they fall onto, and check if they are implementing their strategies into action by the way that the balanced scorecard goes. In this research, "Financial objectives," "Internal Business Process," "Customer satisfaction," and "Innovation and Learning" are the four major constituents we take into consideration when we proceed with our actions to demonstrate the effectiveness of the balanced scorecard (Cooper & Schindler, 1998; Eccles & Pyburn, 1992; Fairchild, 2002; Gane, Haigh, & O'Brien, 2002; Kaplan & Norton, 1993; Venkatraman & Ramanujam 1986). The results of this research could serve as a reference for the manufacturers in anywhere that desire to bring the balanced scorecard into use. This research attempts to combine the theory of the balanced scorecard with the managerial practice of the manufacturing and to test the theory practically. Because the implementation of sub-constituent may vary with each various enterprises, we decide to adopt Taiwan manufacturers' managerial practice as BSC's sub-constituents and to explore its influence on the performance of Taiwan manufacturers.

The rest of the paper is organized as follows. In Section 2, the backgrounds of this research are described. The methodologies we used are explained in Section 3. Section 4 shows the empirical data analysis, and Section 5 gives the conclusions and suggestions. …

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