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Increase the Effectiveness of Balanced Scorecard System through the Expansion in its Dimensions and the Development of Measurement Method

Journal of Administrative and Economics Science

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Title Increase the Effectiveness of Balanced Scorecard System through the Expansion in its Dimensions and the Development of Measurement Method
 
Creator Alsawafiri, Fathi Rezk
Almoshaigeh, Abdullah Ibrahim
 
Description The research problem is twofold: the first deals with the inadequacy of the four dimensions ofbalanced scorecard system (BSCS) (financial, customer, internal business processes, growth andinnovation), the second addresses the apparent lack of accounting studies and research on themeasurement of the relative importance of dimensions of BSCS and of the measurement of the relativeimportance of performance indicators for each of these dimensions.The objectives of this research can be divided into three axes. The first is to provide a conceptualframework that includes the analysis of the efforts of researchers towards measuring and evaluating theBSCS, in terms of the principles and foundations that must be considered when it is used, its relationshipto strategic planning, its functions, and its general applications. The second is to build a comprehensivemodel to measure and evaluate the BSCS. The third is to give the model the applicability property byrelying on an appropriate statistical method that is the Analytic Hierarchy Process (AHP) to measure therelative importance of dimensions and performance indicators.The current research proves the validity of two Hypotheses. The first hypothesis indicates that the use of asystem to measure and evaluate the BSCS leads to acquisition of the comprehension characteristic by increasingcoverage in the dimensions, to increase the general nature of the economic units that use it, and to increase theeffectiveness of measurement and evaluation of performance in managerial accounting. The second hypothesisinvolves the assumption that reliance on the Analytic Hierarchy Process can lead to increasing the credibility andobjectivity of the provisions of the relative importance of the dimensions of the system and performance indicators.Accordingly, the research plan included three axes to demonstrate and evaluate the previous studies. The first groupof studies covers the nature of BSCS and its relationship to strategic planning. The second group of studies coversthe coverage of the dimensions in the BSCS. The third group of studies attempts to develop the process ofmeasurement and evaluation.The current empirical study used a deliberately chosen sample of experts working in the field of performancemeasurement using BSCS to apply the Analytic Hierarchy Process in two phases, the first is to quantify the relativeimportance of the seven dimensions that have been suggested by previous research and the second is to determinethe amount of the relative importance of performance indicators for measuring and evaluating each of the sevendimensions. Also, the current study extended to include how to calculate the degree of consistency among theexperts interviewed for judging the credibility of their judgments.The current study highlighted a distinct group of findings and recommendations, which can add anacceptable and satisfactory solutions to measure and evaluate the BSCS, both in the scope of the amount of therelative importance of the dimensions and indicators. The study was also characterized by showing a number oftopics that could be fertile ground for future research.Key Words: Balanced Scorecard– The Basic Dimensions to Measure and Evaluate the Performance–Analytical Hierarchy Process (AHP)- Materiality of Dimensions and Indicators.
 
Publisher Qassim University Academic Publishing and translation
 
Contributor —
 
Date 2011-11-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://publications.qu.edu.sa/ojs/index.php/economic/article/view/472
 
Source Journal Of Administrative And Economics Science; Vol 3, No 2
 
Language eng
 
Relation http://publications.qu.edu.sa/ojs/index.php/economic/article/view/472/466