The Balanced Scorecard and its Practical Application to Small and Medium Hotels’ Growth in Eswatini

Abstract

Big hotels located in Eswatini like Royal Eswatini Sun and Hilton Garden Court have a clear performance measurement tool to assess their performance. However, the small and medium hotels (SMHs) have challenges to use such tools to measure their performances. This article assesses the usage of the balanced scorecard (BSC) as a tool for Eswatini small and medium hotels sector for performance measurement and growth. The research method adopted was an explanatory mixed sequential method where the initial data collection and analysis conducted was quantitative, and the second phase was qualitative research. The overall quantitative results revealed that SMHs used BSC. The emphases were on non-financial performance measures (internal business process, customer, and learning growth). The financial measures were the lowest used, and this motivated and guided the follow-up interviews with managers and directors. The findings from the interview data revealed the association between financial and non-financial performance measures. The implication of these findings resulted in the development of SMHs BSC performance measurement model. The framework for this model could be used to align with the sector and organization strategy as well as develop and implement the hotel plans based on the sector’s needs analysis.

Keywords

• bsc
• performance measurement
• financial
• non-financial
• framework