RELATIONSHIP BETWEEN MANAGEMENT FASHION RATIONALE FOR BALANCED SCORECARDADOPTION AND ORGANIZATIONAL PERFORMANCE OF STATE CORPORATIONS IN KENYA
Keywords:
Management fashion rationale, balanced scorecard adoption and organizational performance.Abstract
Purpose: The purpose of this study was to determine the relationship between management fashion rationale for balanced scorecard adoption and organizational performance of state corporations in Kenya.
Methodology: The research design employed in this study was explanatory cross-sectional survey research design. The population was 32 state corporations that have adopted balanced scorecard. A sample size of 96 top and senior middle level managers comprising of Managing Directors, Human Resource Directors, Finance Directors, Operations Directors, or their equivalent designations in senior management were surveyed using semi-structured questionnaires. The research adopted a quantitative approach.
Findings: The findings indicated that management fashion rationale of balanced scorecard adoption is a good predictor of organizational performance of State Corporations in Kenya. The findings also showed that management fashion rationale and organizational performance had a positive and significant relationship.
Unique Contribution to Theory, Practice and Policy: In line with the findings, it is recommended that organizations should not adopt balanced scorecard model from a fad and fashion perspective. They should adopt the balanced scorecard with a long-term benefit of it in their mindset.
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References
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Abrahamson, E. (1996). Management fashion. Academy of management review, 21(1), 254-285.
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Carson, P. P., Lanier, P. A., Carson, K. D., & Guidry, B. N. (2000). Clearing a path through the management fashion jungle: Some preliminary trailblazing. Academy of Management Journal, 43(6), 1143-1158.
Chalhoub, M. S. (2009). The effect of management practices on corporate performance: an empirical study of non-governmental organizations in the Middle East. International journal of management, 26(1), 51.
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De Geuser, F., Mooraj, S., & Oyon, D. (2009). Does the balanced scorecard add value? Empirical evidence on its effect on performance. European Accounting Review, 18(1), 93-122.
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Madsen, D., & Slåtten, K. (2013). The role of the management fashion arena in the cross-national diffusion of management concepts: The case of the balanced scorecard in the Scandinavian countries. Administrative Sciences, 3(3), 110-142.
Mol, M. J., & Birkinshaw, J. (2009). The sources of management innovation: When firms introduce new management practices. Journal of business research, 62(12), 1269-1280.
Nohria, N., & Eccles, R. G. (1992). Networks and organizations: Structure, form, and action. Springer Publications.
Porter, M. E., & Ketels, C. H. (2003). UK competitiveness: moving to the next stage.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of management, 35(3), 718-804.
Rigby, D., & Bilodeau, B. (2011). Management tools & trends 2011. Bain & Company Inc.
Storey, C., & Kahn, K. B. (2010). The role of knowledge management strategies and task knowledge in stimulating service innovation. Journal of service research, 13(4), 397-410.
Tutar, H. (2009). Örgütsel iletişim. Seçkin Yayıncılık.
Vaccaro, A., Parente, R., & Veloso, F. M. (2010). Knowledge management tools, inter-organizational relationships, innovation and firm performance. Technological Forecasting and Social Change, 77(7), 1076-1089.
Van Rossem, A., & Van Veen, K. (2011). Managers' awareness of fashionable management concepts: An empirical study. European Management Journal, 29(3), 206-216.
Wanjohi, A. (2010). Sustainability of Community Based Projects in Developing Countries: A Study of Sustainability Issues facing Community Based Projects in Rural Areas of Mbeere District in Kenya.
Wu, H. K. (2010). Modelling a Complex System: Using novice expert analysis for developing an effective technology enhanced learning environment. International Journal of Science Education, 32(2), 195-219.
Abrahamson, E. (1996). Management fashion. Academy of management review, 21(1), 254-285.
Ax, C., & Bjornenak, T. (2005). Bundling and diffusion of management accounting innovations"”the case of the balanced scorecard in Sweden. Management Accounting Research, 16(1), 1-20.
Basuony, M. A. (2014). The Balanced Scorecard in large firms and SMEs: A critique of the nature, value and application. Accounting and Finance Research, 3(2), 14.
Battisti, G., & Iona, A. (2009). The intra-firm diffusion of complementary innovations: Evidence from the adoption of management practices by British establishments. Research Policy, 38(8), 1326-1339.
Bloom, N., & Van Reenen, J. (2007). Measuring and explaining management practices across firms and countries. The Quarterly Journal of Economics, 122(4), 1351-1408.
Braam, G. (2012). Balanced scorecard's interpretative variability and organizational change. Business Dynamics in the 21st Century.
Carson, P. P., Lanier, P. A., Carson, K. D., & Guidry, B. N. (2000). Clearing a path through the management fashion jungle: Some preliminary trailblazing. Academy of Management Journal, 43(6), 1143-1158.
Chalhoub, M. S. (2009). The effect of management practices on corporate performance: an empirical study of non-governmental organizations in the Middle East. International journal of management, 26(1), 51.
Chen, C. J., & Huang, J. W. (2009). Strategic human resource practices and innovation performance"”The mediating role of knowledge management capacity. Journal of business research, 62(1), 104-114.
Daniel, E. M., Myers, A., & Dixon, K. (2008). Adoption of managerial innovations: effect of adoption rationales on the adoption process.
Daniel, E., Myers, A., & Dixon, K. (2012). Adoption rationales of new management practices. Journal of Business Research, 65(3), 371-380.
De Geuser, F., Mooraj, S., & Oyon, D. (2009). Does the balanced scorecard add value? Empirical evidence on its effect on performance. European Accounting Review, 18(1), 93-122.
Dedeoğlu, B. (2008). Uluslararası Güvenlik ve Strateji. Yeniyüzyıl Yayınları.
Gholami, M. H., Asli, M. N., Nazari-Shirkouhi, S., & Noruzy, A. (2013). Investigating the influence of knowledge management practices on organizational performance: an empirical study. Acta Polytechnica Hungarica, 10(2), 205-216.
Gibson, J. W., & Tesone, D. V. (2001). Management fads: Emergence, evolution, and implications for managers. The Academy of Management Executive, 15(4), 122-133.
Gill, J., & Whittle, S. (1993). Management by panacea: Accounting for transience. Journal of Management Studies, 30(2), 281-295.
Gumbus, A. (2005). Introducing the balanced scorecard: creating metrics to measure performance. Journal of management education, 29(4), 617-630.
Hemmings, A. D. (2012). Considerable values in Antarctica. The Polar Journal, 2(1), 139-156.
Hoque, Z. (2014). 20 years of studies on the balanced scorecard: trends, accomplishments, gaps and opportunities for future research. The British accounting review, 46(1), 33-59.
Jung, N., & Kieser, A. (2012). Consultants in the management fashion arena. The Oxford handbook of management consulting, 327-346.
Kaplan, R. S., & Norton, D. P. (2006). Alignment: Using the balanced scorecard to create corporate synergies. Harvard Business Press.
Kaplan. (2010). Conceptual Foundations of the Balanced Scorecard. Boston: Harvard Business School, Harvard University.
Kothari, C. R. (2011). Research methodology: Methods and techniques. New Age International.
Kraaijenbrink, J. (2012). Integrating knowledge and knowledge processes: a critical incident study of product development projects. Journal of product innovation management, 29(6), 1082-1096.
Lawson, R., Stratton, W., & Hatch, T. (2006). Scorecarding goes global. Strategic Finance, 87(9), 34.
Leiringer, R., & Cardellino, P. (2008). Tales of the expected: investigating the rhetorical strategies of innovation champions. Construction Management and Economics, 26(10), 1043-1054.
López-Nicolás, C., & Meroño-Cerdán, Ã. L. (2011). Strategic knowledge management, innovation and performance. International journal of information management, 31(6), 502-509.
Madsen, D., & Stenheim, T. (2014). Perceived benefits of balanced scorecard implementation. Problems and Perspectives in Management, 12(3), 81-90.
Madsen, D., & Slåtten, K. (2013). The role of the management fashion arena in the cross-national diffusion of management concepts: The case of the balanced scorecard in the Scandinavian countries. Administrative Sciences, 3(3), 110-142.
Mol, M. J., & Birkinshaw, J. (2009). The sources of management innovation: When firms introduce new management practices. Journal of business research, 62(12), 1269-1280.
Nohria, N., & Eccles, R. G. (1992). Networks and organizations: Structure, form, and action. Springer Publications.
Porter, M. E., & Ketels, C. H. (2003). UK competitiveness: moving to the next stage.
Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of management, 35(3), 718-804.
Rigby, D., & Bilodeau, B. (2011). Management tools & trends 2011. Bain & Company Inc.
Storey, C., & Kahn, K. B. (2010). The role of knowledge management strategies and task knowledge in stimulating service innovation. Journal of service research, 13(4), 397-410.
Tutar, H. (2009). Örgütsel iletişim. Seçkin Yayıncılık.
Vaccaro, A., Parente, R., & Veloso, F. M. (2010). Knowledge management tools, inter-organizational relationships, innovation and firm performance. Technological Forecasting and Social Change, 77(7), 1076-1089.
Van Rossem, A., & Van Veen, K. (2011). Managers' awareness of fashionable management concepts: An empirical study. European Management Journal, 29(3), 206-216.
Wanjohi, A. (2010). Sustainability of Community Based Projects in Developing Countries: A Study of Sustainability Issues facing Community Based Projects in Rural Areas of Mbeere District in Kenya.
Wu, H. K. (2010). Modelling a Complex System: Using novice expert analysis for developing an effective technology enhanced learning environment. International Journal of Science Education, 32(2), 195-219.
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Published
2018-02-08
How to Cite
Osewe, J. O., Gachunga, D. H., Senaji, D. T., & Odhiambo, P. R. (2018). RELATIONSHIP BETWEEN MANAGEMENT FASHION RATIONALE FOR BALANCED SCORECARDADOPTION AND ORGANIZATIONAL PERFORMANCE OF STATE CORPORATIONS IN KENYA. Journal of Developing Country Studies, 3(1), 1–15. Retrieved from https://iprjb.org/journals/index.php/JDCS/article/view/581
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