Design issues in balanced scorecards

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The following management research article is chosen for analysing the research methods used.

"Agostina, Deborah., and Arnaboldi, Michela., (2012) ‘Design issues in Balanced Scorecards: The "what" and "how" of control', European Management Journal (2012) 30, pp.327-339."

In order to learn the suitability and the reason of using the research method in the said research study above, let us first review the research findings and the ultimate aims that the research intends to achieve. Understanding the research objective will help to determine the appropriate research methods to be used because the research aim that is most likely to be achieved is about constructing a research design with the right approach of organizing of research activities including the collection of data (Easterby-Smith, M., et. al., 2012). It is a further research investigating into the interaction between design and use as a combined dimension of balanced scorecard (BSC) for performance management system although the design and use have been widely discussed in management studies respectively (Agosina, D., and Arnaboldi, M., 2012). The findings revealed that BSC design features are different depending on the specific style of control. BSC that is characterised by a predominance of non-financial KPIs associates with a more interactive style of control. The research has established a relationship between implicit targets and an interactive control style, which is linked to the rewarding system. The philosophical of the research is identified as epistemological constructionism.

The management research example is an exploratory case-study, which is to derive the benefits of in-depth and accurate results based on qualitative methodology and thorough theoretical review. Primary data sources were presented in the study of which predominantly generated from in-depth interviews (Easterby-Smith, M., et. al., 2012). The primary data collected from interviews were cross-referenced with data from other sources and cross checked against insights from similar cases to prove validity and increase reliability (Agosina, D., and Arnaboldi, M., 2012). The approach was to first identify 7 Italian non-financial firms operating in different industries and characterised by different ownership structures and sizes. This was to prepare the foundation for clustering the 7 firms according to the BSC style of control, whether diagnostic or interactive to derive common patterns in the BSC design associated with different styles of use. The clustering was to facilitate data analysis more objectively. A total of 22 interviews were conducted with CFOs and senior managers, some of them were interviewed twice to further explore interesting issues emerging from analysis of the data from the first interview (Agosina, D., and Arnaboldi, M., 2012). A semi-structure interview approach was adopted using a checklist as a reference. The outlines of the interviews were sent to the firms in advance and follow up with a summary of the proposed discussion sent to the interviewees in order to avoid misunderstandings and obtain further clarifications (Agosina, D., and Arnaboldi, M., 2012).

The study has also presented secondary data sources through thorough theoretical reviews. It has made reference to previous studies on performance management system design or use, including the analysis of relevant theories used to support the previous studies, ranging from stakeholder theory (Atkinson, 1998; Li & Tang, 2009), to behavioural theory (Lipe&Salterio, 2000), institutional theory (Brignall& Modell, 2000; Modell, 2003), contingency theory (Chenhall, 2003)and resource based view theory (Fink, Marr, Siebe, &Kuhle, 2005; Luneborg& Nielsen, 2003).

Other research methodologies that could be possibly applied to conduct the similar research are focus group interview and database search. Focus group interview is primary data source, usually a method with loose structured and instrumental to steer conversations whereby the skill of the interviewer both as initiator and facilitator is very important (Easterby-Smith, M., et. al., 2012). It has the advantage to create a situation where all participants feel comfortable expressing their views and responding to the ideas of those around them (Easterby-Smith, M., et. al., 2012). Although CFOs and senior managers have direct interest on the financial performance which is closely related to the effectiveness of implement BSC to drive performance and subsequently influenced organisational performance, understanding the response from all level of employees whose performance is subject to BSC measurement is also very crucial for contributing to the study of the performance measurement system design and use. Hence, the focus groups should be divided into sub-groups that consist of similar level of seniority or experience for interviewing so that the research question can be more systematically and objectively addressed. It is also to reflect a more creditable research outcome. Database search is a secondary source of research, which involves the searching through company or government reports, advertisements, newspaper articles and books (Easterby-Smith, M., et. al., 2012). Today, researcher usually moves straightaway to internet search which is fast and convenient but the reliability of the source from internet must be determined and validated. Secondary data sources should be considered because they are used to compliment primary data sources (Easterby-Smith, M., et. al., 2012).

Survey by using questionnaire and observation perhaps is the alternative of data collection strategies for the management research example. Completing questionnaires shall give more privacy to the respondents to reflect the true and honest thoughts or views while answering the questions particularly when considering the study of rewards as motivator built in BSC (Kaplan & Norton, 1992) which is financially sensitive, to influence performance as compared to the performance measurement system design and use. Observation as a proposed data collection strategy due to the accuracy and non-bias response from the respondents. It is the sub-conscious mind reaction as reflect to show the real behaviour and decision in answering questions or puzzles that set in by a scene. Sometime, body language from respondents as noticed through observation is a reliable indicator to satisfy research question as compared to survey questionnaires. The management research example has focused on qualitative method and in-depth interviewed 22 senior managers including CFO which involved interaction, observation may be a good strategy to substantiate genuine data collection without interaction (Easterby-Smith, M., et. al., 2012).

Thanks.

Verified Expert

"In this research paper, integration of Balance Score Card with SWOT analysis is depicted clearly. The processes and strategies of collecting accurate data are analyzed in this research paper. For in-depth analysis of the research, researcher has taken help of Primary Quantitative Research Approach along with Descriptive Research Strategy. In addition, this research paper has depicted all ethical consideration of research paper."

Reference no: EM131203061

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