The use of the Balanced Scorecard by SMEs in Francophone Africa: An empirical investigation

Journal: Accounting Research Journal

Publisher: Emerald

eISSN: 1030-9616

ISSN: 1030-9616

DOI: 10.1108/ARJ-04-2024-0151

Abstract:

Purpose: The aim of this research is to investigate why Small & Medium Size Enterprises (SMEs) in Francophone African context south of the Sahara are reluctant to adopt/implement the Balanced Scorecard (BSC) in their operations despite the perceived benefits.

Methodology/Design: The paper is based on 15 in-depth interviews with managers of SMEs from Francophone African context south of the Sahara. The SMEs interviewed are in different sectors, different activities and at different growth stages. The paper also critically reviews relevant literature on how the BSC applies in a modern business environment with a focus on its applicability within the Francophone African context.

Findings: This research establishes that the BSC plays a key role in assisting managers of SMEs in making holistic long-term management decisions. However, the results are mixed in terms of adopting/implementing the BSC in the Francophone African context. It has been established that, some SMEs adopt/implement some of the perspectives of the BSC, others implement all the four perspectives while others make changes/adapt the perspectives to help them meet their strategic needs. It is also established that due to differences in socio-economic, cultural and ideology in these Francophones African context south of the Sahara, SMEs are considering their organisational cultures and perceived effects before making any decision to either adopt or implement the BSC. Our findings also show that, the few SMEs that adopt/implement the BSC intend to grow both in size and scope and consequently increase their efficiency and productivity.

Practical implications: It is envisaged that this research will add to the existing literature on the use of the BSC by SMEs in the Francophone African context south of the Sahara. The findings of this paper will enable researchers to understand the effects of specific SME internal and external business environmental factors on how the BSC can be modified and applied within different SMEs.

Originality/value: This research points out the limitations of the BSC applicability within the Francophone African context with different internal and external environmental factors and identifies the need to upgrade and redesign the BSC to reflect the realities of the SMEs and especially within the Francophone African context.

Source: Manual