The Impact Of Balanced Scorecard Adoption On Performance Of Algerian Manufacturing Firms: A Contingency Approach

Résumé

SUMMARY This study seeks to determine the effect of contingency variables on adopting the balanced scorecard in Algerian manufacturing companies, as well as the impact of these companies adopting the balanced scorecard on their financial and non-financial performance. This study was devised on the presumptions of Contingency theory, and it included a sample of 41 Algerian manufacturing companies. Path analysis models based on Partial Least Squares were relied on in order to analyze data collected by the questionnaire and test study hypotheses using the software SmartPLS 3. The study reached several results; the most important of which is that there is no statistically significant correlation when it comes to environmental uncertainty and competitive intensity on the adoption of the balanced scorecard. There is, however, a positive correlation between company size and the ability to adopt the balanced scorecard. Furthermore, this work concluded that adopting balanced scorecard does not possess a direct effect on financial performance indicators; it has, however, a positive effect on improving non-financial performance indicators in Algerian manufacturing companies. The study recommends that companies, move towards the integration of modern management approaches, and that based on sound scientific foundations and presumptions in order to improve their performance.