Journal of Economic, Finance Research and Review (JEFRR)

Balanced Scorecard: Great Management Tool or Illusion of Success?

., Mukhtaruddin, Adhyaksa, Rizki Meidira, DP, Rina Tjandrakirana

28 January 2026 · Vol. 2, Issue 1, pp. 1-8

DOI: 10.65150/EP-jefrr/V2E1/2026-01

Abstract

The Balanced Scorecard (BSC) is a strategic management tool that combines financial and non-financial performance measures to help companies achieve long-term goals. This study aims to assess the effectiveness of BSC in improving company performance. Using qualitative methods, the author reviews literature studies that both support and criticize its implementation. The results indicate that while BSC has been shown to help companies develop strategies and enhance performance in various industries, its implementation is also criticized. Some studies reveal a disconnect between formulated and implemented strategies and question the long-term validity of BSC. Factors such as uncertainty in the business environment, inappropriate design, and lack of management commitment are often cited as causes of failure in BSC implementation. The author concludes that while BSC can be an effective tool in performance measurement, its success relies heavily on the company's ability to tailor its use to its internal needs and conditions.

Keywords: Balanced scorecard, management accounting, firm performance JEL Codes : M40, M49, L25

Read the full text on Journal of Economic, Finance Research and Review →The full peer-reviewed article and PDF are hosted on the journal's site (the version of record).

., Mukhtaruddin, Adhyaksa, Rizki Meidira, DP, & Rina Tjandrakirana (2026). Balanced Scorecard: Great Management Tool or Illusion of Success?. Journal of Economic, Finance Research and Review, 2(1), 1-8. https://doi.org/10.65150/EP-jefrr/V2E1/2026-01

@article{2026,
  title   = {Balanced Scorecard: Great Management Tool or Illusion of Success?},
  author  = {. and Mukhtaruddin and Adhyaksa and Rizki Meidira and DP and Rina Tjandrakirana},
  journal = {Journal of Economic, Finance Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {1},
  pages   = {1-8},
  doi     = {10.65150/EP-jefrr/V2E1/2026-01},
  url     = {https://doi.org/10.65150/EP-jefrr/V2E1/2026-01}
}

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