Exploring the implementation of balanced scorecard within Indonesian manufacturing SMEs
Mulki Siregar, Achmad Sutrisna
Many manufacturing SMEs applied traditional models focusing on a financial perspective in their performance measurement. Accordingly, the models do not raise other aspects of performance measurement such as service quality, employee skills, and internal business process efficiency levels. The purpose of this study is to explore the implementation of BSC-based performance measurement within Indonesian manufacturing SMEs. The results of this study indicate that the financial perspective weighs of 0.122; the customer's perspective weighs of 0.424; internal business perspective weighs of 0.227; and the learning and growth perspective weighs of 0.227. The financial perspective consists of income growth, increased return on investment, ability to repay business capital, and increase in net income indicators. The customer’s perspective consists of growing market share, growing number of customers, improving service quality, and customer satisfaction indicators. The internal business process perspective consists of defective product ratios, R & D cost ratios, and time effectiveness indicators. The learning and growth perspective consists of employee productivity, employee turnover, and employee job satisfaction. The results imply that manufacturing SMEs need to improve the strategy by optimizing the resources needed, utilizing waste materials, monitoring payment schedules, and monitoring billing schedules.
Mulki Siregar, Achmad Sutrisna. Exploring the implementation of balanced scorecard within Indonesian manufacturing SMEs. International Journal of Multidisciplinary Research and Development, Volume 6, Issue 5, 2019, Pages 62-68