Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Using the Balanced Scorecard Perspectives to Measure the Performance of Manufacturing Companies in Jordan

Author(s): Shamsi S. Bawaneh

This research evaluates the use of Balanced Scorecard (BSC), introduced by Kaplan & Norton in the early 1990s, to measure the performance of Jordanian manufacturing companies. For this, the quantitative design was used. Data was collected through a questionnaire from a sample of forty manufacturing companies listed on the Amman Stock Exchange in 2018. The four perspectives (customer, internal process, learning and growth, and financial) were examined. Results reveal that indicators in the financial perspective for Jordanian manufacturing companies only include the traditional financial criteria (e.g., ROA, ROE). It shows that the primary strategy for Jordanian manufacturing companies from a financial perspective is to meet their pre-determined objectives of profit. The Jordanian manufacturing companies show a slight inclination for attempting to improve their financial results. Furthermore and due to the limited resources and high competition, Jordanian manufacturing companies should formulate their strategies based on both financial and non-financial measures suitable for them. Although, this study provides an overview application of BSC in Jordanian manufacturing companies and highlights the need for further research.

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