Title: Business strategy-balanced scorecard measures alignment: an empirical test of its performance implications using systems approach

Authors: Ruzita Jusoh, Dato' Daing Nasir Ibrahim, Yuserrie Zainuddin

Addresses: Faculty of Business & Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. ' School of Management, Universiti Sains Malaysia, Penang, Malaysia. ' School of Management, Universiti Sains Malaysia, Penang, Malaysia

Abstract: Using cross-sectional data from 120 Malaysian manufacturing firms, this study empirically examines the alignment, by way of systems approach, between business strategy and the use of balanced scorecard (BSC) measures. This alignment is proposed to provide a positive impact on firm performance. Alignment was conceptualised using the systems approach as proposed by Drazin and Van de Ven (1985) which defines it as the internal consistency of multiple contingencies and multiple structural characteristics. Given the importance of non-financial performance measures in providing better indicators of performance, many firms have used multiple performance measures, such as the BSC measures that comprise four perspectives: financial, customer, internal business processes, and learning and growth. Thus, this study intends to address the contribution of multiple performance measures which are consistent conceptually with the BSC framework.

Keywords: balanced scorecard; BSC; business strategy; firm performance; manufacturing firms; Malaysia; alignment; performance measures.

DOI: 10.1504/JGBA.2008.018384

Journal for Global Business Advancement, 2008 Vol.1 No.2/3, pp.252 - 270

Published online: 19 May 2008 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article