Original scientific paper
Performance Measurement Model – Developing and Testing a Measurement Model Based on the Simplified Balanced Scorecard Method
Bezdrob Muamer
; PING d.o.o. Sarajevo, BiH
Mirha Bičo Ćar
; School of Economics and Business Sarajevo, BiH
Abstract
The purpose of this research is to design and test a performance measurement model that is
based on the balanced scorecard method, which would be simple enough to be easily implemented
and used by a large number of companies. Along with a thorough literature review,
all necessary hypotheses that make up a basis for theoretical model were formulated.
Consequently, the corresponding model was specified. For the purpose of model testing we
used the data from companies’ balance reports. The final dataset includes 363 companies
from the F B&H. Research results show that the fi nancial activities the companies undertake
have a direct and positive effect on the business processes and an indirect and positive
effect on the business performance. In addition, well-run business processes have a direct
and positive effect on the business performance. The main implication of this research is
that the designed model could facilitate the process of performance measurement. Our
results show that, if appropriately processed, the data contained in the obligatory companies’
documents provide a balanced picture of company’s performance. This research
contributes to the body of knowledge related to the performance measurement methods by
designing measurement scales and types that could be used in future research.
Keywords
Performance measurement; Balanced Scorecard; Model; SEM
Hrčak ID:
98287
URI
Publication date:
1.12.2012.
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