IDEAS home Printed from https://ideas.repec.org/a/ami/journl/v17y2018i2p191-215.html
   My bibliography  Save this article

The Balanced Scorecard Logic in The Management Control and Reporting of Small Business Company Networks: A Case Study

Author

Listed:
  • Selena Aureli

    (University of Bologna, Italy)

  • Andrea Cardoni

    (University of Perugia, Italy)

  • Mara Del Baldo

    (University of Urbino Carlo Bo, Italy)

  • Rosa Lombardi

    () (University of Rome La Sapienza, Italy)

Abstract

The purpose of this paper is to assess and integrate the application of the balance scorecard (BSC) logic into business networks identifying functions and use that such performance measuring tool may undertake for SME’s collaborative development. Thus, the paper analyses a successful case study regarding an Italian network of small companies, evaluating how the multidimensional perspective of BSC can support strategic and operational network management as well as communication of financial and extra financial performance to stakeholders. The study consists of a qualitative method, proposing the application of BSC model for business networks from international literature. Several meetings and interviews as well as triangulation with primary and secondary documents have been conducted. The case study allows to recognize how BSC network logic can play a fundamental role on defining network mission, supporting management control as well as measuring and reporting the intangible assets formation along the network development lifecycle. This is the first time application of a BSC integrated framework for business networks composed of SMEs. The case study demonstrates operational value of BSC for SME’s collaborative development and success.

Suggested Citation

  • Selena Aureli & Andrea Cardoni & Mara Del Baldo & Rosa Lombardi, 2018. "The Balanced Scorecard Logic in The Management Control and Reporting of Small Business Company Networks: A Case Study," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(2), pages 191-215, June.
  • Handle: RePEc:ami:journl:v:17:y:2018:i:2:p:191-215
    as

    Download full text from publisher

    File URL: http://online-cig.ase.ro/RePEc/ami/articles/17_2_1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lin, Feng-Jyh & Lin, Yi-Hsin, 2016. "The effect of network relationship on the performance of SMEs," Journal of Business Research, Elsevier, vol. 69(5), pages 1780-1784.
    2. Laitinen, Erkki K., 2002. "A dynamic performance measurement system: evidence from small Finnish technology companies," Scandinavian Journal of Management, Elsevier, vol. 18(1), pages 65-99, March.
    3. Elina Varamaki & Marko Kohtamaki & Marko Jarvenpaa & Tero Vuorinen & Erkki K. Laitinen & Kirsti Sorama & Tom Wingren & Jukka Vesalainen & Petri Helo & Tommi Tuominen & Timo Pihkala & Jarkko Tenhunen, 2008. "A framework for a network-level performance measurement system in SME networks," International Journal of Networking and Virtual Organisations, Inderscience Enterprises Ltd, vol. 5(3/4), pages 415-435.
    4. Selena Aureli & Mara Del Baldo, 2016. "Peformance Appraisal of Business Networks. How Small and Medium Enterprises Define and Monitor Network Objectives," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2016(1), pages 35-58.
    5. Andrea Cardoni, 2012. "Business planning and management accounting in strategic networks: theoretical development and empirical evidence from enterprises’ network "agreement"," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2012(suppl. 3), pages 91-116.
    6. Luciano Marchi, 2011. "L’evoluzione del controllo di gestione nella prospettiva informativa e gestionale esterna," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2011(3), pages 5-16.
    7. Jürgen Strohhecker, 2016. "Factors influencing strategy implementation decisions: an evaluation of a balanced scorecard cockpit, intelligence, and knowledge," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 89-119, February.
    8. Pettigrew, Andrew M., 1997. "What is a processual analysis?," Scandinavian Journal of Management, Elsevier, vol. 13(4), pages 337-348, December.
    9. Pedro Sena Ferreira & A.H.M. Shamsuzzoha & Cesar Toscano & Pedro Cunha, 2012. "Framework for performance measurement and management in a collaborative business environment," International Journal of Productivity and Performance Management, Emerald Group Publishing, vol. 61(6), pages 672-690, July.
    10. Halinen, Aino & Tornroos, Jan-Ake, 2005. "Using case methods in the study of contemporary business networks," Journal of Business Research, Elsevier, vol. 58(9), pages 1285-1297, September.
    11. Jorge Renato Verschoore & Douglas Wegner & Alsones Balestrin, 2015. "The evolution of collaborative practices in small-firm networks: a qualitative analysis of four Brazilian cases," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 8(2), pages 152-168.
    12. Gérald Naro & Denis Travaillé, 2011. "The role of the balanced scorecard in the formulation and control of strategic processes," Journal of Applied Accounting Research, Emerald Group Publishing, vol. 12(3), pages 212-233, November.
    13. Daniela Mancini, 2016. "Accounting Information Systems in an Open Society. Emerging Trends and Issues," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2016(1), pages 5-16.
    14. Halinen, Aino & Törnroos, Jan-Åke, 1998. "The role of embeddedness in the evolution of business networks," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 187-205, March.
    15. Rosa Lombardi & Andrea Caputo & Giuseppe Russo & Vincenzo Formisano, 2015. "Management control of contractual networks: the business network scorecard," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 7(4), pages 269-286.
    16. Mooraj, Stella & Oyon, Daniel & Hostettler, Didier, 1999. "The balanced scorecard: a necessary good or an unnecessary evil?," European Management Journal, Elsevier, vol. 17(5), pages 481-491, October.
    17. Fernhaber, Stephanie A. & Li, Dan, 2013. "International exposure through network relationships: Implications for new venture internationalization," Journal of Business Venturing, Elsevier, vol. 28(2), pages 316-334.
    18. Elina VaramÄki & Jukka Vesalainen, 2003. "Modelling different types of multilateral co-operation between SMEs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(1), pages 27-47, January.
    19. Harri I. Kulmala & Antti Lonnqvist, 2006. "Performance measurement of networks: towards a non-financial approach," International Journal of Networking and Virtual Organisations, Inderscience Enterprises Ltd, vol. 3(3), pages 299-316.
    20. Huggins, Robert, 2001. "Inter-firm network policies and firm performance: evaluating the impact of initiatives in the United Kingdom," Research Policy, Elsevier, vol. 30(3), pages 443-458, March.
    21. Dubois, Anna & Gadde, Lars-Erik, 2002. "Systematic combining: an abductive approach to case research," Journal of Business Research, Elsevier, vol. 55(7), pages 553-560, July.
    22. Bernard Marr, 2004. "Mapping the dynamics of how intangibles create value," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 1(3), pages 358-369.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mehdi Salimi & Mahboubeh Khodaparast, 2019. "Providing a combined model of fuzzy AHP and numerical taxonomy analysis for sport organizational ranking and performance appraisal," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(5), pages 1133-1144, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrizia Pastore & Antonio Ricciardi & Silvia Tommaso, 2020. "Contractual networks: an organizational model to reduce the competitive disadvantage of small and medium enterprises (SMEs) in Europe’s less developed regions. A survey in southern Italy," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1503-1535, December.
    2. Andrea Runfola & Simone Guercini & Gianluca Gregori & Andrea Perna, 2013. "Discontinuity in interaction. findings from two cases in the Italian context," MERCATI E COMPETITIVIT, FrancoAngeli Editore, vol. 2013(1), pages 53-72.
    3. Chou, Hsin-Hui & Zolkiewski, Judy, 2012. "Managing resource interaction as a means to cope with technological change," Journal of Business Research, Elsevier, vol. 65(2), pages 188-195.
    4. Pagano, Alessandro & Petrucci, Francesco & Bocconcelli, Roberta, 2018. "A business network perspective on unconventional entrepreneurship: A case from the cultural sector," Journal of Business Research, Elsevier, vol. 92(C), pages 455-464.
    5. Selena Aureli & Mara Del Baldo, 2016. "Peformance Appraisal of Business Networks. How Small and Medium Enterprises Define and Monitor Network Objectives," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2016(1), pages 35-58.
    6. Palmira Piedepalumbo & Concetta Metallo & Daniela Mancini, 2017. "La Network Governance a supporto dell’Open Innovation: un’analisi della letteratura," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2017(3), pages 79-94.
    7. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2016. "The impact of formal networking on the performance of SMEs," Carlo Alberto Notebooks 490, Collegio Carlo Alberto.
    8. Kowalkowski, Christian & Kindström, Daniel & Alejandro, Thomas Brashear & Brege, Staffan & Biggemann, Sergio, 2012. "Service infusion as agile incrementalism in action," Journal of Business Research, Elsevier, vol. 65(6), pages 765-772.
    9. Suomi, Kati & Luonila, Mervi & Tähtinen, Jaana, 2020. "Ironic festival brand co-creation," Journal of Business Research, Elsevier, vol. 106(C), pages 211-220.
    10. Derwik, Pernilla & Hellström, Daniel & Karlsson, Stefan, 2016. "Manager competences in logistics and supply chain practice," Journal of Business Research, Elsevier, vol. 69(11), pages 4820-4825.
    11. Aureli, Selena & Del Baldo, Mara, 2019. "Performance measurement in the networked context of convention and visitors bureaus (CVBs)," Annals of Tourism Research, Elsevier, vol. 75(C), pages 92-105.
    12. Dubois, Anna & Gadde, Lars-Erik, 2014. "“Systematic combining”—A decade later," Journal of Business Research, Elsevier, vol. 67(6), pages 1277-1284.
    13. Hilde Nykamp, 2020. "Policy Mix for a Transition to Sustainability: Green Buildings in Norway," Sustainability, MDPI, Open Access Journal, vol. 12(2), pages 1-17, January.
    14. Brodrechtova, Yvonne, 2008. "Determinants of export marketing strategies of forest products companies in the context of transition -- The case of Slovakia," Forest Policy and Economics, Elsevier, vol. 10(7-8), pages 450-459, October.
    15. Olsen, Per Ingvar & Prenkert, Frans & Hoholm, Thomas & Harrison, Debbie, 2014. "The dynamics of networked power in a concentrated business network," Journal of Business Research, Elsevier, vol. 67(12), pages 2579-2589.
    16. Roberto Gabriele & Andrea Mazzitelli & Giuseppe Espa & Maria Michela Dickson, 2019. "Capabilities and firm growth: the role of formal collaboration agreements," DEM Working Papers 2019/16, Department of Economics and Management.
    17. Aarikka-Stenroos, Leena & Sandberg, Birgitta, 2012. "From new-product development to commercialization through networks," Journal of Business Research, Elsevier, vol. 65(2), pages 198-206.
    18. João Mota & Maximilian Christl & Luís Mota de Castro, 2015. "Dealing With The Non-Accomplishments Of Functional Specifications In The Context Of Buyer-Supplier Relationships: A Case Study In The Automotive Industry," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 19-42.
    19. Williams, Martin & Biggemann, Sergio & Tóth, Zsófia, 2020. "Value creation in art galleries: A service logic analysis," Australasian marketing journal, Elsevier, vol. 28(1), pages 47-56.
    20. M. Eduarda Soares & António Damasceno Correia, 2015. "Cognitive Flexibility, Perception Of Integrity, And Risk Propensity As Antecedents Of Willingness To Engage In Integrative Negotiation," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 73-94.

    More about this item

    Keywords

    management control; balanced scorecard; business networks;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ami:journl:v:17:y:2018:i:2:p:191-215. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cristina Tartavulea). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.