A generic balanced scorecard for small and medium manufacturing enterprises in South Africa

Abstract

Background: Prior research confirmed that the balanced scorecard (BSC) can be used successfully at manufacturing small and medium enterprises (SMEs), to assist with sustainability. South African SMEs have a low survival rate despite being a significant contributor to the local economy with the manufacturing sector in particular hampered by negative growth. Aim: The objective of this study was to develop a BSC for manufacturing SMEs in South Africa with measurable key performance indicators (KPIs). Setting: We conducted a Delphi study with cost accounting specialists in different industries. Methods: The development of the generic BSC was facilitated with a Delphi survey and analytical hierarchy process (AHP). Results: The research presents a generic yet flexible BSC for manufacturing SMEs. A total number of 12 generic and 104 specific KPIs were identified. The results revealed a greater emphasis on the financial and customer perspectives that may be conducive to SME sustainability and success. Conclusion: A generic BSC that can be adapted to specific organisational and industry requirements has the potential to enhance SME sustainability and success.

Keywords

• Small and medium enterprises (SME)
• Balanced scorecard (BSC)
• Delphi study
• Analytical Hierarchy Process (AHP)