Keyword

Balanced Scorecard (BSC), reducing production costs, financial perspective, customers' perspective, internal processes perspective, and learning and growth perspective.

Abstract

The study aims to measure the effect of using balanced scorecard (BSC); with its different perspectives on reducing production costs in the Jordanian industrial companies. The study depends on the questionnaire which was addressed to the financial managers, accounting department heads, managerial and costs accountants. The study sample contained (171) employees working in the Jordanian industrial companies. It used the descriptive, analytical, and also the regression analysis methods. The study results showed a significant effect of using the following BSC perspectives (financial perspective, customers' perspective, internal processes perspective, and learning and growth perspective) on reducing production costs in the Jordanian industrial companies. The study recommended that industrial companies should keep paces with the rapid changes taking place in the manufacturing environment, and continuously encourage those companies to innovate their employees.


Full Text : PDF

References
  1. AL-Shwiyat, Ziyad Mustafa (2013), The impact of Social Responsibility on the Financial Performance for Jordanian Companies, European Journal of Business and Management, Vol.5, No.30, pp 123- 132.
  2. Alsyouf, I. (2006). Measuring maintenance performance using a balanced scorecard approach. Journal of Quality in Maintenance Engineering, 12(2), 133-149.
  3. Al–Sawalqa. F; Holloway, D; & Alam, M, (2011). Balanced Scorecard Implementation in Jordan: An Initial Analysis.; International Journal of Electronic Business Management, 9(3), pp. 196-210.
  4. American Accounting Association (2008). http://aaahq.org/
  5. Anderson, D.R., Sweeney, D.R. and Williams, T.A. (1993), Statistics for Business and Economics, Fifth Edition, West Publishing Company, St. Paul, MN.
  6. Barrow, M. (1988) Statistics for Economics, Accounting and Business Studies, Longman Group UK Limited, UK.
  7. Bashir, S. Z. (2003), the statistical program, SPSS, Central Bureau of Statistics, Department of Statistics, Baghdad, Iraq. 
  8. Bataineh, A. (2018). Applicability of activity-based costing in the Jordanian hospitality industry. International Journal of Economics and Business Research, 15(4), 475-489.
  9. Bataineh, A., & Rababah, A. (2016). Comprehensive Income and Net Income, which is more powerful in predicting Future Performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(2), pp 114-120.
  10. Bazrkar, A., & Iranzadeh, S. (2017). Choosing a strategic process in order to apply in Lean Six Sigma methodology for improving its performance using integrative approaches of BSC and DEA. Journal of Business and Retail Management Research, 11(4), pp 114-123.
  11. Bruce A, M, (1992), Aspects of Cost Control, Cost Engineering, 34(6), pp 19-23.
  12. Carenys, J., & Sales, X. (2008). Costing the banking services: a management accounting approach. Journal of money, investment and banking, 6(1), pp 8-9. 
  13. Carmona, S., Iyer, G., & Reckers, P. (2011). The impact of strategy communications, incentives and national culture on balanced scorecard implementation. Advances in Accounting, p. 1-13. doi: 10.1016/j. adiac. 2011. 01. 004.
  14. Carroll, P, 1953, How to Control Production Costs, New York, McGraw-Hill, USA.
  15. Chuang, M. (2007). The Balanced Scorecard: Creating a management system for private technical universities in Taiwan. (3243815 Ed.D.), Spalding University, Kentucky, United States. Retrieved from https://vpn.utm.my/docview/ 304741860? Accounted=41678 ProQuest Dissertations & Theses Full Text.
  16. Compton, J & Brinker, M, Jr, (2005), How do we Define "Cost", Journal of Financial Service Professional, 59(5), pp 16-17.
  17. Czuchry, A., Mahmoud, Y., & Damir K. L. (2009). Enhancing organizational effectiveness through the implementation of supplier parks: The case of the automotive industry. Journal of International Business Research 8(1) pp45-61.
  18. Darvish, H., Mohammadi, M., & Afsharpour, P. (2012). Studying the Knowledge Management-Effect of Promoting the Four Balanced Scorecard Perspectives: A Case Study at SAIPA Automobile Manufacturing. Economic Insights-Trends & Challenges, 64(1), pp 9-23.
  19. Davis, S., & Albright, T. (2004). An investigation of the effect of balanced scorecard implementation on financial performance. Management accounting research 15(2), pp 135-153. 
  20. Jassbi, J., Mohamadnejad, F., & Nasrollahzadeh, H. (2011). A Fuzzy DEMATEL framework for modeling cause and effect relationships of strategy map. Expert systems with Applications, 38(5), pp 5967-5973.
  21. Jinkens, R., & Yallapragada, R. R. (2010). Cost Accounting in Auto Manufacturing Companies in Germany and the United States. The International Business & Economics Research Journal, 9(3), pp 121-126.
  22. Horngren, C. T., & Datar, S. M. Foster G, (2006), Cost Ac-counting: A Managerial Emphasis.
  23. Huang, H, Lai, M, & Lin, L. (2011), Developing strategic development and improvement for the biopharmaceutical firm: Using the BSC hierarchy. Expert Systems with Applications 38, (2011). 4875-4881. Retrieved from Academic One File via Gale.
  24. Ghosh, S., & Mukherjee, S. (2006). Measurement of corporate performance through Balanced Scorecard: an overview. Journal of Commerce 11(6), pp 60-68.
  25. Kaplan, R., Norton, D. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes (Boston, MA: Harvard Business School Press).
  26. Kaplan, R. and Norton p. (1992). The balanced scorecard: Measures that Drive performance, Harvard Business Review, USA, 70(1), 71-79. 
  27. Murphy, C. V., Schramm, G. E., Doherty, J. A., Reichley, R. M., Gajic, O., Afessa, B., ... & Kollef, M. H. (2009). The importance of fluid management in acute lung injury secondary to septic shock. Chest, 136(1), pp 102-109.
  28. Niven, P. R. (2011). Balanced scorecard: Step-by-step for government and nonprofit agencies. John Wiley & Sons. Second Edition.
  29. 23.
  30. Mersereau, K.O., Nijander, C.R. and Townsend, W.P., AT&T Corp, 1994. Method for making microstructures. U.S. Patent 5,370,768
  31. Martin, B, A (1992) "Aspects of Cost Control", Cost Engineering; 34, 6, pp19-23
  32. Rababah A, Bataineh A. (2016) Factors influencing balanced scorecard implementation. Research Journal of Finance and Accounting; 7(2): pp 204-212.
  33. Kim, D., Cavusgil, S. T., & Calantone, R. J. (2006). Information system innovations and supply chain management: channel relationships and firm performance. Journal of the Academy of Marketing Science, 34(1), pp 40-54
  34. Sandberg, K. D. (2001). Reengineering Tries a Comeback—This Time for Growth, Not Just Cost Savings. Harvard Management Update, 6(11), pp 3-6.
  35. Seyed hosseini, S. M., Taleghani, A. E., Bakhsha, A., & Partovi, S. (2011). Extracting leanness criteria by employing the concept of Balanced Scorecard. Expert Systems with Applications, 38(8), pp10454-10461.
  36. Tseng, M. (2010). Implementation and performance evaluation using the fuzzy network balanced scorecard. Computers & Education, 55(1), pp188-201.
  37. Upton, D; (2012). Experimental Balanced Scorecard Research: Implications for Practitioners. Management Accounting Quarterly.13 (4) pp 25-31.
  38. Watts, C (1902), the cost of production, Muskegon, The Shaw-Wallker company.
  39. Webner, F E, (1911), Factory Costs, New York, The Ronald press company, USA.
  40. www.ASE.com.jo/ (ASE) Amman Stock Exchange 2017.