Abstract
Purpose – The purpose of this research is to show a preliminary examination of the effects of the
development of the causal model of the strategy in the implementation of the Balanced Scorecard.
Studies on the Balanced Scorecard adoption show that many organizations that adopted the Balanced
Scorecard did not develop a causal model of their strategy. The study seeks to examine the differences
in Balanced Scorecard implementation of adopters who developed a causal model of their strategy and
those who did not.
Design/methodology/approach – Mailed survey was used to collect the data.
Findings – It was found that Balanced Scorecard adopters who did not develop a causal model of
their strategy experienced specific problems more than those who developed a causal model of their
strategy. It affected the outcomes and ease of implementation of the Balanced Scorecard.
Research limitations/implications – The small number of responses obtained in this study due to
the relatively recent adoption of the Balanced Scorecard in Malaysia limits the generalizability of this
study. However, it does provide insights on the hypotheses to be examined in future studies.
Practical implications – The findings of this survey suggest that the successful implementation of
the Balanced Scorecard requires that organizations develop and articulate a causal model of their
strategy.
Originality/value – This study is probably the first attempt to examine the role of causal model
development in effective implementation of the Balanced Scorecard.
Keywords Balanced scorecard, Performance levels, Strategic planning, Malaysia
Paper type Research paper