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Volume :15 Issue : 3 2008      Add To Cart                                                                    Download

THE BALANCED SCORECARD APPROACH IN JORDANIAN MANUFACTURING COMPANIES: A CONTINGENCY APPROACH

Auther : MAJDY I. ZURIEKAT

In an attempt to understand the balanced score card (BSC) approach, this study investigates how Jordanian manufacturing companies apply the BSC approach. This study also examines the relationship between several contextual factors and the extent of BSC usage. The contextual factors consist of business strategy, organizational structure, perceived environmental uncertainty, intensity of competition, and organization size. Despite the popularity of the BSC approach, 53% of the companies reported using it in their performance measurement systems. The findings also emphasize the inconsistency between companies following the BSC, particularly the number and types of perspectives used. The results using multiple regression indicate that formalization and organization size significantly influence the extent of BSC usage. By contrast, business strategy, centralization, perceived environmental uncertainty, and intensity of competition have no influence on the extent of BSC usage.

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