The Effect of Using Balanced Scorecard on Competitive Advantage and Its Impact on Firm Performance

Lela Nurlaela Wati, Gunawan Triwiyono

Abstract


English Version

The paper is aimed to examine the effect of balanced scorecard on competitive advantage and its impact to firm performance. The samples of this research are companies that use balanced scorecard in DKI Jakarta as many as 50 companies. This research is uses primary data by giving questionnaires to corporate managers using balanced scorecard. We use Structural Equation Model with SmartPLS. The result of this research shows that there is positive effect between balanced scorecard to competitive advantage. Finding also shows that there is positive effect between balanced scorecard and competitive advantage to firm performance. The research also proves that there is positive effect between balanced scorecard to firm performance through competitive advantage. The findings of this study indicate that the better the application of balanced scorecard in the company will increase the competitive advantage and firm performance.


Keywords


balanced scorecard, keunggulan kompetitif, kinerja perusahaan

Full Text:

PDF

References


Ahmadi, P., Khoddami, S., Osanlou, B., & Moradi, H. (2012). Using the Balanced Scorecard to design organizational comprehensive performance evaluation model. African Journal of Business Management, 6(6), 2267-2277.

Amstrong, M. (1998). Performance Management. Clays, Ltd. St. Ives Ple, England.

Anthony, R.N., & Govindarajan, V. (2003). Management Control System 11th Edition. Boston: Mcgraw Hill

Barney, J. B. (1991). Firm Resources & Sustained Competitive Advantage. Journal of Management, 17, 99-120.

Bhasin, S. (2008). Lean and Performance Measurement. Journal of Manufacturing Technology.

Carton, R. B. (2004). Measuring Organizational Performance: An Exploratory Study, Edward Elgar Publishing Limited.

Combs, J. G. T., Crook, R., & Christopher, L. S. (2005). The Dimensionality of Organizational Performance and its Implications for Strategic Management Research. In Professor David Ketchen and Professor Don Bergh (Ed.) Research Methodology in Strategy and Management, 2, 259-286.

Davis, S. & Albright, T. (2004). An Investigation of the Effect of Balances Scorecard Implementation on Financial Performance. Management Accounting Research, 15(2), 135-153.

Der Jang, Chi & Hsu Feng, Hung (2011). Is the Balanced Scorecard Really Helpful for Improving Performance? Evidence from Software Companies in China and Taiwan. African Journal of Business Management, 5(1), 224-239.

Hair, Black, Babin, Anderson & Tatbam. (2011). Multivariate Data Analysis. USA: Pearson International Edition.

Higgins, R. C. (1995). Analysis for Financial Management (4th Edition), Boston, Ma: Irwin.

Kallas, D. (2006). Balanced Scorecard Implementation for Strategy Management: Variation of Manager Opinion in Real and Simulated Companies. Developments in Business Simulation and Experiential Learning, 33, 197-203.

Kaplan, R. S. & Norton, D. P. (1996). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 74(1), 75-85.

Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization: How BSC Companies Thrive in the New Competitive Environment.

Kaplan, R. S., & Norton, D. P. (2006). How to Implement a New Strategy without Distruping Your Organization. Harvard Business Review, 84(3), 100.

Keats, B.W. & Hitt, M.A (1988) “A Causal Model of Linkages Among Environmental Dimension, Macro Organizational Characteristics and Performance”, Academy of Management Journal, 31(3), 570-598.

Li, S., Ragu-Nathan, B., Ragu-Nathan T. S., & Rao, S. S. (2006). The Impact of Supply Chain Management Practices on Competitive Advantage and Organizational Performance. Omega, 34, 107-124.

Lokatili, Tifany Armin, and Devie. (2013). “Analysis of the Effect of Balanced Scorecard on Competitive Advantage and Company Performance”. Business Accounting Review, 1.2: 72-81.

Mulyadi. (2007). Management Accounting: Concepts, Benefits, and Engineering, Edition 3. Jakarta: Salemba Empat.

Neely, A.D. (1999). “The Performance Measurement Revolution: Why Now and Where Next”, International Journal of Operations and Production Management, 19(2), 205-228.

Norreklit, H. (2003). The Balances Scorecard: What is the Score? A Theoretical Analysis of the Balanced Scorecard. Account. Org. Soc., 28(6), 591-619.

Porter, M. E. (2005). Competitive Strategy New York: The Dryden Press A Division of Macmillan Publishing Co. Inc.

Prayhoego, Callystha Adhelline. (2013). “Influence Analysis of Total Quality Management on Competitive Advantage and Company Performance”. Business Accounting Review, 1.2: 236-245.

Qin, S. Y., Atkins, A. S., & Yu, H. (2013). Balanced Scorecard Approach to Evaluate Business Performance Measurement Using Web Tools in E-Tourism. International Journal of Computing Science and Communication Technologies, 5(2).

Sim, K. L., & Koh, H. C. (2001). Balanced Scorecard: A Rising Trend in Strategic Performance, Measurement. Measuring Business Excellence, 5(2).

Srimindarti, Ceacilia. (2004). Balanced Scorecard as an Alternative to Measure Performance. Fokus Ekonomi, 3(1).

Strohhecker, J. (2007). Does a Balanced Scorecard Management Cockpit Increase Strategy Implementation Performance?, System Dynamics Society Conference.

Tuan, N. P., & Yoshi, T. (2010). Organisational Capabilities, Competitive Advantage and Performance in Supporting Industries in Vietnam. Asian Academy of Management Journal, 15(1), 1-21.

Tracey, M., Vonderembse, M. A., & Lim J. S. (1999). Manufacturing Technology and Strategy Formulation: Keys to Enhancing Competitiveness and Improving Performance. Journal of Operations Management, 17(4), 411–428.

Utama, Sidharta (1997), “Economic Value Added: Measurement of Value Creation”, Manajemen Usaha Indonesia, No. 4, Th.XXVI

Venkatraman, N., & Ramanujam, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11(4), 801-814.

Vickery, S., Calantone, R., & Droge, C. (1999). Supply Chain Flexibility: An Empirical Study. Journal of Supply Chain Management, 35(3), 16–24.

Wati, L. N., Primiana, I., & Sudarsono, R. (2016). Political Connections of Conglomerates: Evidence Form Indonesia Stock Exchange. Actual Problems in Economics, (186), 110-119.

Whittaker, James B. 1995. The Government Performance and Result Act of 1993: A Mandate for Strategic Planning and Performance Measurement, Educational Services Institut: Arlington, Virginia.

Yamin S, Gunasekaran A, Mavondo F.T. (1999). Relationship between Generic Strategies, Competitive Advantage and Organizational Performance: An Empirical Analysis. Technovation, 19(8), 507-518.




DOI: http://dx.doi.org/10.33021/jaaf.v2i1.306

Refbacks

  • There are currently no refbacks.


Mailing Address

Jl. Ki Hajar Dewantara, Kota Jababeka, Cikarang Baru, Bekasi 17550 - Indonesia

Mail Address

jaaf@president.ac.id

 

ISSN 2580-1791 (Print)

ISSN 2615-8051 (Online)

View My Stats

flag

 

---------------------------------------------------------------------------------------------------------------------------------------------------

JAAF (Journal of Applied Accounting and Finance) is indexed in:

Current accreditation SINTA 4