Assessment of the Applicability of the Balanced Scorecard Concept in Small and Medium-Sized Enterprises

Jolović, Ivana and Jolović, Nevena (2020) Assessment of the Applicability of the Balanced Scorecard Concept in Small and Medium-Sized Enterprises. Škola biznisa: naučno-stručni časopis, 13 (1). pp. 112-136. ISSN 1451-6551

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Abstract

The modern management concept Balanced Scorecard (BSC), thanks to the
efficient solutions it offers, draws increasing attention from the management across the
globe. BSC is a performance measurement system which unites a traditional, financial
perspective with the consumer, internal business processes, and learning and growth
perspectives; and provides intelligibility of the company’s vision and strategic goals,
strengthening of the internal communication of employees, and more efficient
realization of key business activities. The implementation of the BSC concept in large
enterprises is a quite simple and efficient process, while the procedure of incorporating
its postulates into the structure of small and medium-sized enterprises is extremely
complex and uncertain. For that reason, the aim of this scientific research is the
assessment of the applicability of the BSC in small and medium-sized enterprises, with a
simultaneous overview of examples of successful and less successful implementation
practices, and the most frequent reasons for non-implementation of the concept itself.
The research is inspired by the observation that the world literature has, to a certain
extent, neglected the analysis of the application of the BSC concept in small and
medium-sized enterprises. The descriptive and comparative method, the technique of
analysis and synthesis, as well as analysis of the content of relevant literature of
reference, national and foreign authors were used for research purposes. The result of
the research is the confirmed assumption that the implementation of the BSC concept in
small and medium-sized enterprises is possible but at the same time quite complex and
demanding due to the influence of different variables. Accordingly, the
recommendations such as that the BSC model should be simplified and burdened with a
smaller number of metrics in order to become more applicable in small and mediumsized enterprises were derived in the research.

Item Type:	Article
Additional Information:	COBISS.ID=34946825
Uncontrolled Keywords:	balanced Scorecard, BSC, small and medium-sized enterprises, SMEs, performance measurement systems
Research Department:	Innovation Economics
Depositing User:	Jelena Banovic
Date Deposited:	25 Mar 2021 08:21
Last Modified:	11 Oct 2021 12:32
URI:	http://35.240.28.64/id/eprint/1579
Author Links:	[error in script] No links available.

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