Version 1
: Received: 19 October 2024 / Approved: 21 October 2024 / Online: 21 October 2024 (17:13:38 CEST)
How to cite:
Muraba, J.; Mamogobo, M.; Thango, B. The Balanced Scorecard Methodology: Performance Metrics and Strategy Execution in SMEs: A Systematic Review. Preprints2024, 2024101598. https://doi.org/10.20944/preprints202410.1598.v1
Muraba, J.; Mamogobo, M.; Thango, B. The Balanced Scorecard Methodology: Performance Metrics and Strategy Execution in SMEs: A Systematic Review. Preprints 2024, 2024101598. https://doi.org/10.20944/preprints202410.1598.v1
Muraba, J.; Mamogobo, M.; Thango, B. The Balanced Scorecard Methodology: Performance Metrics and Strategy Execution in SMEs: A Systematic Review. Preprints2024, 2024101598. https://doi.org/10.20944/preprints202410.1598.v1
APA Style
Muraba, J., Mamogobo, M., & Thango, B. (2024). The Balanced Scorecard Methodology: Performance Metrics and Strategy Execution in SMEs: A Systematic Review. Preprints. https://doi.org/10.20944/preprints202410.1598.v1
Chicago/Turabian Style
Muraba, J., Mogase Mamogobo and Bonginkosi Thango. 2024 "The Balanced Scorecard Methodology: Performance Metrics and Strategy Execution in SMEs: A Systematic Review" Preprints. https://doi.org/10.20944/preprints202410.1598.v1
Abstract
The Balanced Scorecard (BSC) is a widely recognized strategic performance metric that has been extensively studied in large corporations but remains underexplored in the context of Small and Medium-sized Enterprises (SMEs). Understanding the effectiveness of BSC in aligning performance metrics with strategic goals and enhancing performance management in SMEs is critical for fostering growth and competitive advantage. This systematic review aims to evaluate the effectiveness of the Balanced Scorecard in measuring performance and strategy execution within SMEs, particularly focusing on financial and non-financial outcomes such as employee motivation, customer satisfaction, and business sustainability. A systematic review was conducted following the PRISMA framework, incorporating 136 studies sourced from Google Scholar, Web of Science, and SCOPUS. Eligibility criteria focused on publications from the last ten years that address the implementation of BSC in SMEs. Quantitative, qualitative, and mixed-method studies were included, with 49.63% of studies using quantitative methods, 26.67% qualitative, and 23.70% mixed-methods. Risk of bias was assessed using the Chrohane tool, revealing high risks in 90 studies due to incomplete outcome data and selective reporting. The review found that 74% of studies adopted a holistic approach by focusing on all four BSC perspectives (Financial, Customer, Internal Processes, and Learning and Growth). ROI emerged as the most frequently discussed key performance indicator, addressed in 36.84% of publications, while customer satisfaction and employee engagement were covered in 26.32% each. Geographic disparities were observed, with most of the research concentrated in Asia and Europe (40%) and only 8% in Africa. Despite positive outcomes such as improved business sustainability and competitive advantage (38.52% of studies), challenges persisted, including poor strategy execution and limited resources, necessitating careful customization of BSC to SME-specific contexts. The Balanced Scorecard demonstrates significant potential in enhancing performance management and strategic execution within SMEs, particularly when tailored to address unique constraints such as resource limitations. This review highlights the need for further research to standardize key performance indicators and explore sector-specific applications. By addressing these gaps, the BSC can be more effectively utilized to drive growth, agility, and long-term competitive advantage in SMEs.
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
