Factors affecting the adoption extent of the balanced scorecard by Vietnamese small- and medium-sized enterprises

Publication Name

Accounting Research Journal


Purpose: This study empirically examines factors affecting the extent of balanced scorecard (BSC) adoption in Vietnamese small- and medium-sized enterprises (SMEs) such as top management involvement, an innovative culture, a product innovation strategy, organisational resources, a competitive environment and business network support. This study aims to gain an improved understanding and draw important lessons on BSC adoption for SMEs. Design/methodology/approach: Using primary data obtained from a survey of top managers of SMEs that have experienced some forms of BSC adoption, the authors conduct their analysis using exploratory factor analysis and regression analysis methods. Findings: The authors find that top management involvement, an innovative culture, organisational resources and business network support are essential factors impacting the extent of BSC adoption in Vietnamese SMEs. Besides confirming literature findings on these variables, the authors identify support of business networks as another important factor affecting the extent of BSC adoption, alongside location and business owners’ experience. However, the impacts of a product innovation strategy and a competitive environment are not significant. Research limitations/implications: This study adapts scales previously designed for large enterprises in developed countries to fit into the context of Vietnamese SMEs. Future research can take advantage of this new set of scales and data to obtain further research results. Practical implications: This study will serve as guidance for SMEs considering BSC adoption to have a clear vision of what factors are likely to affect BSC adoption, how they affect it and in what direction. Social implications: Lessons learned can be extended not only to Vietnamese SMEs that have not yet adopted the BSC but also to firms in other countries with similar economic conditions. Originality/value: This study is among pioneering studies on BSC in SMEs and within the context of Vietnam.

Open Access Status

This publication is not available as open access



Link to publisher version (DOI)