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Thirty years with the balanced scorecard: What we have learned

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  • Tawse, Alex
  • Tabesh, Pooya

Abstract

The balanced scorecard (BSC) is one of the most influential strategy implementation and control tools of the past 75 years, but data regarding the BSC’s impact on firm performance is mixed. In this work, we go beyond anecdotal evidence to take stock of the practical impact the BSC has had, synthesize available qualitative and quantitative data on the relationship between BSC adoption and firm performance, and investigate the conditions under which the BSC has been found to be a successful strategy implementation tool. Based on the evidence, we then provide several recommendations on how to maximize the value of BSC adoption. These recommendations are centered on an apparent paradox: While the BSC is a tool for effective strategy implementation, it must itself be effectively implemented to deliver on its potential.

Suggested Citation

  • Tawse, Alex & Tabesh, Pooya, 2023. "Thirty years with the balanced scorecard: What we have learned," Business Horizons, Elsevier, vol. 66(1), pages 123-132.
    • Handle: RePEc:eee:bushor:v:66:y:2023:i:1:p:123-132
    DOI: 10.1016/j.bushor.2022.03.005
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    References listed on IDEAS

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    1. Tabesh, Pooya & Mousavidin, Elham & Hasani, Sona, 2019. "Implementing big data strategies: A managerial perspective," Business Horizons, Elsevier, vol. 62(3), pages 347-358.
    2. Fabien De Geuser & Stella Mooraj & Daniel Oyon, 2009. "Does the Balanced Scorecard Add Value? Empirical Evidence on its Effect on Performance," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 93-122.
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    4. Ricardo Malagueño & Ernesto Lopez-Valeiras & Jacobo Gomez-Conde, 2018. "Balanced scorecard in SMEs: effects on innovation and financial performance," Small Business Economics, Springer, vol. 51(1), pages 221-244, June.
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    6. Noble, Charles H., 1999. "Building the strategy implementation network," Business Horizons, Elsevier, vol. 42(6), pages 19-28.
    7. Erik G. Hansen & Stefan Schaltegger, 2018. "Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?," Journal of Business Ethics, Springer, vol. 150(4), pages 937-952, July.
    8. Hoque, Zahirul, 2014. "20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research," The British Accounting Review, Elsevier, vol. 46(1), pages 33-59.
    9. Tawse, Alex & Tabesh, Pooya, 2021. "Strategy implementation: A review and an introductory framework," European Management Journal, Elsevier, vol. 39(1), pages 22-33.
    10. Moraga, Javier A. & Quezada, Luis E. & Palominos, Pedro I. & Oddershede, Astrid M. & Silva, Hernán A., 2020. "A quantitative methodology to enhance a strategy map," International Journal of Production Economics, Elsevier, vol. 219(C), pages 43-53.
    11. Tawse, Alex & Patrick, Vanessa M. & Vera, Dusya, 2019. "Crossing the chasm: Leadership nudges to help transition from strategy formulation to strategy implementation," Business Horizons, Elsevier, vol. 62(2), pages 249-257.
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    Cited by:

    1. Ying Sophie Huang & Kazunori Ito & Moeki Nemoto, 2023. "Sustainable Communication Management Using the Balanced Scorecard: Evidence from a Japanese Hospital Based on Corporate Communication Theory," Sustainability, MDPI, vol. 15(13), pages 1-23, June.
    2. Mahir Oner & Ufuk Cebeci & Onur Dogan, 2024. "BSC-Based Digital Transformation Strategy Selection and Sensitivity Analysis," Mathematics, MDPI, vol. 12(2), pages 1-21, January.

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