Balanced Scorecard (BSC) Usage And Financial Performance; Examining The Moderating Effect Of Intensity Of Competition

Abstract :

The study aimed to investigate the extent of BSC usage in a Jordanian context, as well as examining the relationship between BSC usage and organizational performance. Finally, the study attempted to provide empirical evidence regarding the moderating effect of intensity of competition on the association between BSC usage and organizational performance. The response rate was 55%, which is considered highly accepted compared to previous studies. The descriptive analysis indicated that the level of BSC usage was at moderate for all BSC dimensions. Moreover, the study demonstrated that the Jordanian companies were facing a competitive business environment based on the intensity of competition results. Therefore, the study asserted that the BSC intergraded dimensions are necessary for a firm’s long-term success in such a competitive environment. The hypotheses results of the study indicated that BSC usage has a significant positive relationship with financial performance, Thus, this result demonstrated that the main role of BSC that has been considered to facilitate organizations activities which leads to improve their overall performance, particularly financial performance. Finally, the study revealed that the intensity of competition influenced the relationship between BSC and the firm’s performance and moderate the relationship between BSC usage and firm’s performance. Finally, the study recommended extending the implementation of BSC due to its evidenced contributions in terms of enhancing a firm’s performance in a Jordanian context by increasing the awareness of attainable benefits of the implementation of BSC. Similarly, the study endorsed the taking into account of the non-financial aspects. Finally, the study suggested employing the mixed method as a fruitful research approach and utilized other research theories such as agency theory and shareholder theory. Finally, it is suggested that other factors are studied that can influence the relationship between BSC and financial performance indicators.