Key performance indicators and the Balanced Scorecard approach in small and medium-sized enterprises: A literature review

Abstract

Purpose of the article The aim of this article is to identify possible approaches for define key performance indicators and possibilities of use balanced scorecard to this extend in small and medium-sized enterprises (SMEs).

Methodology/methods Comparison of the views of authors with the performance measurement in companies using key performance indicators, balanced scorecard and their combination with other approaches. This literature review is intended to find gaps of the studies in this area, which can lead to future research. Secondary research is used publishers such as Elsevier, Emerald, Springer and other. This literature review is actual for present year, because the level of knowledge in this area will change and expand in the future. For this reason, the main focus is on time period between 2014 – 2019.

Scientific aim Define performance measurement approaches based on key performance indicators and balanced scorecard and identifying knowledge gaps in this area.

Findings The results show that key performance indicators are suitable for measuring performance in companies and they are very often used with combination of fuzzy methods or Enterprise Analysis Model. But one of the most common ways is to implement key performance indicators (KPIs) depending on balanced scorecard (BSC). The gap in knowledge has been identified in the implementation of these procedures in SMEs, mainly in non-productive enterprises.

Conclusions These approaches are very suitable for measuring company performance and have sufficient evidence ability. The limitation lies in the fact that these methods requires profound knowledge of this issue and implementation is long and demanding. SMEs often lacking the necessary finances or knowledge of how implement this approach. Because of this reason, the founded gap is unforgettable problem, and it is necessary that future research be focused on this topic.