The Function of Balanced Scorecard in Strategic Management System

Abstract

The Balanced Scorecard (hereafter, BSC) is a widely adopted performance management framework first described in the early 1990s. More recently it has been proposed as the basis for a ‘strategic management system’. In this paper, we first set out a theory of the function of BSC in the strategic management system then report on an empirical investigation of this theory. The evidence from three companies allows us to conclude that the BSC is useful in the field of formulation of emergent strategies as well as implementation of intended strategies.