Volume 10, Number 2, December 2020
| Balanced Scorecard Use in Small to Medium Enterprises |
Scott Lane 1*, Nelson Alino 2
Abstract
There is significant research on the use and benefits of the Balanced Scorecard (BSC) in large organizations. Research on the use and benefits of the BSC in small and medium size enterprises (SME’s) is conflicted. This paper reviews survey and case study research into the use of the BSC in SMEs and entrepreneurial firms with the objective of reconciling the differing perspectives of prior studies.
Prior studies indicate that there is a pattern to the BSC adoption by SMEs based on information needs created by the increasing complexity of businesses driven by factors such as size, growth rates, the presence of outside stakeholders, and other factors. Disparities in results between studies of BSC in SME may be explained by the differences in relative SME size, growth rates, and ownership.
The use of the BSC could help fast growing SMEs deal with rising complexity. Assisting fast growing SMEs to successfully navigate difficult organizational transitions may be of general benefit as fast growth SMEs are the most likely to provide new jobs and other economic benefits.
Keywords: Balanced Scorecard, Small to Medium Enterprise, Performance Measurement
1 Director, School of Accountancy, Auburn University of Montgomery (USA)
2 Chair, Accounting Department, Quinnipiac University (USA)
* Corresponding Author, E-mail: slane2@aum.edu