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Kaplan and Norton’s Balanced Scorecard - Non-financial performance measurement

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References | Integral Logistics Management | Taylor & Francis Group

Socio-technical challenges in the digital gap between building information modeling and industry 4. Process improvement planning: Approaches to well-founded process decision-making Linhart, A. A,Japan and Germany hence the need to increase production. Between the year and , U. A doubled its local consumption and increased its imports more than four times without changing its production levels thus offering Kenya a huge market potential for macadamia nut Gitonga et al.

Furthermore, having local competitors such as Jungle nuts and Equatorial nuts as well as in other countries such as South Africa and Guatemala Cabi, , there is need for the company to implement performance measures that ensure world class performance. World Horticultural Trade and U. SA Export Opportunities indicated that KNC faces challenges relating to lack of consumer awareness, poor information systems, low purchasing power, high prices due to high processing costs and lack of government support as the government puts more emphasis on other food products such as tea, sugar and coffee.

KNC can overcome these challenges by having a BSC that can improve its functions such as sourcing, production, storage, packaging and distribution in the supply chain that relate to the challenges. For example, the BSC can overcome the challenge of high processing costs through the internal business perspective by having measures such as reduced order cycle time and efficient capacity utilization. An all rounded approach of the BSC can be used to capture the required production capacity, partnerships with stakeholders such as the Kenyan government, technological and demand capacity.

The literature did not cover the BSC in manufacturing industries and specifically the food industry. In addition, there is little evidence of the BSC in regard to supply chain management. Brewer and Speh provided a modified version of the BSC to measure supply chain performance in totality and not within a specific industry. Wongrassamee, notes that the BSC is not a template that can be applied to business in general or even industry wide due to different market situations, different product types and competitive environments that require different scorecards.

Bigliardi and Bottani developed the BSC for the supply chain in food companies.

Kernkompetenzzentrum Finanz- und Informationsmanagement

The case studies exploited in the paper validated the BSC model, but did not investigate its implementation in factual cases. The recommendations on the paper further suggested applying the model to test its suitability in a wide range of food companies. The study did not focus on the BSC in food companies in the Kenyan market. To determine the extent to which the balanced scorecard measures are used on supply chain performance at KNC ii. The study will be of significance to scholars, academicians, organizations in the food industry and the management and staff at KNC.

The study will assist the management and staff of KNC on how to better improve their supply chain performance using the balanced approach. The management of KNC may also find the study results useful as it will aid in decision making. The study will be of importance to Scholars and academicians as they will have more knowledge on the relationships between the BSC measures and the supply chain goals.

The study will therefore act as a source of reference for scholars and academicians. In addition,the findings of the study will enable organizations in the food industry to appreciate the challenges and success factors that accrue from the implementation of the balance scorecard in a supply chain.

This chapter will examine findings from various scholars and authors about the balanced scorecard on supply chain performance. The chapter discusses the balanced scorecard measures relating to financial, customer, internal business, and learning and growth perspectives, challenges faced in the implementation of the BSC and the conceptual framework showing the relationship between the independent and dependent variables.

The balanced scorecard has been used extensively in businesses, industries, government and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, thereby improving internal and external communications and monitoring organizational performance against strategic goals Nyaega, The BSC is seen as a tool that meets the need for improvement and change especially when venturing into the competitive market.


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Jacobs and Maiga argued that the BSC could be considered as a main tool in evaluating organizations comprehensively when dealing with highly changeable environment and as a response to the new global competition. The balanced scorecard has attained significance globally from academicians to industry practitioners. This signifies the balanced measurement of business processes. Recent articles have now focused on the BSC in various areas such as supply chain performance management.

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