A Study On The Effectiveness Of The Balanced Scorecard In Implementing Firm's Strategy

BSC has been considered one of the most important management tools in the past 75 years. Literature shows many companies think BSC has brought breakthrough results. Among 25 global management frameworks, BSC takes the third place in terms of rate of utilization. BSC has become the most popular and efficient tool. Along with the economy developing quickly, Chinese enterprise will act more and more international. Chinese traditional business performance evaluation system and strategy implementation mechanism has could not meet the demand of management innovation and decision, so that Chinese enterprise should positively apply the universally accepted management tools including BSC to improve business management level and enhance international competitiveness. Statistics shows that more than 100 companies in China is applying BSC, how efficient of BSC application and what problems are meted in the process of BSC application by Chinese enterprise and etc are all needed to be probed and studied by business management circle. This research is started at this background, and aiming at providing clues for theoretical study of BSC and suggestions to in-depth utilization of BSC by Chinese enterprises.Since the establishment of BSC in 1992, with the BSC widely used at home and abroad, academic circle has more and more gone deep into BSC. So this paper first starts with literature summarizing of BSC, literature shows the development of BSC has gone through a process that from pure performance management tool to strategy management tool and to strategic HR management and supply chain management tool in other fields. Up to now, study of BSC mainly focuses on in-depth theoretical study, theoretical animadvert and empirical study. It also shows although BSC possess the function of enhance strategy implementation in theory, but it appear more empirical study needed to be conducted to prove the validity of BSC because the evidence of support the validity of BSC mainly come from case study, and almost no large scale samples can prove the validity of BSC which is the most lack. The study mainly focuses this point, and try to prove the validity of BSC with the probing the Chinese enterprise's practice of applying it. In allusion to the validity...