Analysis of Balance Scorecards Model Performance and Perspective Strategy Synergized by SEM

Abstract

The performance assessment analysis after the economic crisis by using Balanced Scorecard (BSC) method becomes a powerful and effective tool and can provide an integrated view of the performance of an organization. This strategy led to the Indonesian economy being stretched positively after the economic crisis. Taking effective decisions is not spared from combining four BSC perspectives and strategies that focus on a system with different behavior or steps. This paper combines two methods of BSC with structural equation modeling (SEM)) because they have the same concept, which is a causal relationship, where the research model concept SEM variables use BSC variable. The purpose of this paper is to investigate the influence of variables that synergized between balanced scorecard with SEM as a means of strategic planning in the future. This study used primary data with a large enough sample to meet the maximum likelihood estimation by assessment scale of seven semantic points. This research model is a combination of one and two step models. The next step is to test the measurement model, structural equation modeling, and modification models. The test results indicated that the model has multi colinearities. Therefore, the model is converted into one step model. The test results after being modified into a model of the goodness of fit indices showed a good score. All BSC variables have direct significant influence, including the perspective of strategic goals and sustainable competitive advantage. The implication of the simulation model of goodness of fit-modification results are DF = 227, Chi-square =276.550, P =0.058, CMIN/DF = 1.150, GFI = 0.831, AGFI = 0.791, CFI = 0.972, TLI = 0.965 and RMSEA = 0.039.

Keywords

• balanced scorecard variable
• perspective of strategic objectives
• SEM
• center of small enterprises