The two-way relationship between the Balanced Scorecard and Management Control Systems in organizations: Lessons from a Case Study

Sara Melo, João Ribeiro

Research output: Contribution to journalArticle

Abstract

This paper reports a case study conducted in Quinta da Aveleda, one of
the three largest Portuguese wine companies. Our aim was to explore the
relationship established between a newly implemented Balanced Scorecard
(BSC) and the elements of the Management Control System (MCS) in the
organization. Thus, two specific objectives were pursued. Firstly, to identify
the influences (barriers, opportunities) of the existing MCS on the implementation
of the BSC. Secondly, to identify the impacts the BSC implementation
was able to exert on the configuration of the organization’s MCS.
We found that the budgeting process, the planning system, the information
infrastructure, and the organizational structure and culture were the elements
of the previous MCS that influenced the BSC implementation process.
Eventually, the BSC implementation led to important changes in the budgeting,
planning, reporting systems and processes. In order to explain these
findings, we briefly explored the main issues and factors accounting for the
scope and nature of the BSC’s impacts on Quinta da Aveleda. These issues
and factors were the mobilized organizational resources, the implementation
approach, the communication, and the organizational support.
Original languageEnglish
Pages (from-to)9-31
Number of pages23
JournalContabilidade e Gestão - Portuguese Journal of Acccounting and Management
Issue number6
Publication statusPublished - Nov 2008

Keywords

  • Balanced Scorecard implementation, management control systems

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Fingerprint Dive into the research topics of 'The two-way relationship between the Balanced Scorecard and Management Control Systems in organizations: Lessons from a Case Study'. Together they form a unique fingerprint.

  • Cite this