The Role of Perfromance Measurement Systems within Family Businesses: a Proposed Balanced Scorecard Model
Journal Title: INTERNATIONAL JOURNAL OF RESEARCH IN EDUCATION METHODOLOGY - Year 2013, Vol 4, Issue 1
Abstract
There was found to be a significant gap between theory on family business and performance measurement systems (PMSs): the theory underlines the importance of PMSs for family businesses, but little research on how implement these systems is available. In this study we propose the adoption of PMSs tools, specifically Balanced Scorecard (BSC), for family businesses; the design of the model depends on the typical issues of family businesses, more specifically social capital and trust, based on effective governance. Social capital represents a distinctive characteristic of family business. Considering that system trust constitutes the basis of social capital, we outline the role PMSs can play in sustaining system trust; PMSs are crucial to the alignment between the management and strategic vision of the organization.The BSC proposed represents a PMSstool that makes governance effective, because it creates the basis for alignment between management and strategic vision of the organization (both from family and business point of view), consistently with family members expectations. The study is organized in different sections. Firstly, we analyse the characteristic of family businesses that must be considered to design BSC: literature review includes the sources of sustainable competitive advantage, focusing the attention on the interaction between family and business, underlining the central role of social capital; then the concept of trust is investigated as it provides the basis of social capital. Secondly, we discuss how PMSs can be adopted to make governance effective. Then we consider the opportunity to adopt BSC as PMSs tool. On the basis of literature review, some propositions are presented to link family business, social capital, trust, PMSs and BSC. Finally, we propose a BSC model for family businesses: we also discuss the reasons why we have chosen BSC framework and the conditions under we have designed the model. Implications are drawn as conclusions; the paper ends with some limitations of the study and opportunities for further researches.
Authors and Affiliations
Paola Vola
Keywords
Related Articles
- EP ID EP654672
- DOI 10.24297/ijrem.v4i1.3934
- Views 120
- Downloads 0
Mental Representations of sixth graders in Greece for the mechanism of vision in conditions of day and night
This research studied the mental representations of 11-year-old Greek students concerning the mechanisms for vision in day and night condition. The aim was to examine the prevalent mental representations that students ho...
Comparative Study of performance of Actively Managed funds & Index Funds in India
index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of mar...
First-year Australian dental students reasons for career choice: a three year perspective
The objective was to determine whether Australian dental students had different reasons for choosing dentistry over a three-year period.
PROCESS OF MAKING TEACHERS AND INCULCATION OF VALUES
The process of acquiring values begins at birth. Values develop through life and evolve from life experiences. They are formed by combining: intellect, will, emotions and spiritual needs. Simply stated, values are belief...
On L1 Interference and Reverse Transfer: Special Reference to the Concept of Multicompetence
As well as the first language influences the second, the second language influences the first. Therefore, researchers have to focus not only on the L1’ L2, but also on the L2’ L1 effect. There has been extensive research...