Skip to main content

Advertisement

Log in

Using the balanced scorecard on supply chain integration performance—a case study of service businesses

  • Case study
  • Published:
Service Business Aims and scope Submit manuscript

Abstract

Supply chains are indispensable to corporations that seek to serve suppliers and customers better, to boost organization performance, to strengthen competitiveness, and to achieve continuous success. Currently, corporations place great emphasis on both supply chains and on balanced scorecards (BSCs) to develop effective measures to evaluate firm performance. This study discusses the integration of supply chain and performance based on the BSC measures developed by Kaplan and Norton (Harv Bus Rev 71(5):134–147, 1993; Harv Bus Rev 74(1):75–85, 1996) and Brewer and Speh (J Bus Logist 21(1): 79–93, 2000). The research applies case studies and a conceptual framework, modifying propositions accordingly. The main objectives of this study are to discuss the construction and implementation of supply chains, to determine how to handle supply chain barriers and to evaluate supply chain integration performance using the idea of a BSC. Companies at different levels in the supply chain are better served by assigning different levels of importance to different types of integration. Case studies show that supply chain integration involves supplier, internal, and customer barriers. The results of these studies have suggested that integrated supply chains can be dominated by one controlling member, which can be located either upstream or downstream in the chain. A new finding in this study is that varying degrees of supply chain integration are obtained due to corporations’ different positions in an industry. The study provides some insights for firms in the process of implementing a supply chain management system.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Ahmad S, Schroeder RG (2001) The impact of EDI on delivery performance. Prod Oper Manag 10(1):16–30

    Article  Google Scholar 

  • Akmanligil M, Palvia PC (2004) Strategies for global information systems development. Info Manag 42(1):45–59

    Article  Google Scholar 

  • Alavi M, Carlson P (1992) A review of MIS research and disciplinary development. J Manag Info Syst 8(4):45–62

    Google Scholar 

  • Babich V, Burnetas AN, Ritchken PH (2007) Competition and diversification effects in supply chains with supplier default risk. Manuf Serv Oper Manag 9(2):123–146

    Article  Google Scholar 

  • Beamon BM (1998) Supply chain design and analysis: models and methods. Int J Prod Econ 55(3):281–294

    Article  Google Scholar 

  • Bhagwat R, Sharma MK (2007) Performance measurement of supply chain management: a balanced scorecard approach. Comput Ind Eng 53(1):43–62

    Article  Google Scholar 

  • Bhatnagar R, Sohal AS (2005) Supply chain competitiveness: measuring the impact of location factors, uncertainty and manufacturing practices. Technovation 25(5):443–456

    Google Scholar 

  • Brewer PC, Speh TW (2000) Using the balanced scorecard to measure supply chain performance. J Bus Logist 21(1):79–93

    Google Scholar 

  • Bullinger H, Kühner M, Van Hoof A (2002) Analyzing supply chain performance using a balance measurement method. Int J Prod Res 40(15):3533–3543

    Article  Google Scholar 

  • Buxmann P, Ahsen A, Díaz LM, Wolf K (2004) Usage and evaluation of SCM software—Results of an empirical study in the European automotive industry. Info Syst J 14(3):295–309

    Article  Google Scholar 

  • Cai L, Liu X, Xiao Z, Liu J (2009) Improving supply chain performance: a systematic approach to analyzing iterative KPI accomplishment. Decis Support Syst 46(2):512–521

    Article  Google Scholar 

  • Chang HH (2005) The Influence of continuous improvement and performance factors in total quality organizations. TQM Bus Excell 16(3):415–439

    Google Scholar 

  • Chang HH (2006) Technical and management perceptions of enterprise information systems importance, implementation, and benefits. Info Syst J 16(3):263–292

    Article  Google Scholar 

  • Chang HH (2009) An empirical study of evaluating SCM integration using the BSC in Taiwan. Serv Ind J 29(2):185–202

    Article  Google Scholar 

  • Chang HH, Wong KH (2010) Adoption of e-procurement and participation of e-marketplace on firm performance: trust as a moderator. Info Manag 47(5–6):262–270

    Article  Google Scholar 

  • Chang HH, Wang HW, Kao TW (2010) The determinant of long-term relationship on inter-organizational systems performance. J Bus Ind Mark 25(2):106–118

    Article  Google Scholar 

  • Chopra S, Meindl P (2001) SCM: strategy, planning, and operation. Prentice Hall, New Jersey

    Google Scholar 

  • Choy KL, Lee WB, Lo V (2003) An intelligent supplier relationship management system for selecting and benchmarking suppliers. Int J Technol Manag 26(7):717–742

    Article  Google Scholar 

  • Christopher M (1998) Logistics and supply chain management. Pitman, London

    Google Scholar 

  • Corbett CJ, Blackburn JD, Van Wassenhove LN (1999) Partnerships to improve supply chains. Sloan Manage Rev 40(4):71–82

    Google Scholar 

  • Cousins PD, Spekman R (2003) Strategic supply and the management of inter- and intra-organizational relationships. J Purch Supply Manag 9(1):19–29

    Article  Google Scholar 

  • Cox A (2001) Understanding buyer and supplier power: a framework for procurement and supply competence. J Supply Chain Manag 37(2):8–15

    Article  Google Scholar 

  • Eisenhaeds KM (1989) Building theories form case study research. Acad Manag Rev 14(4):532–550

    Google Scholar 

  • Ellram LM, Tate WL, Billington C (2004) Understanding and managing the services supply chain. J Supply Chain Manag 40(4):17–32

    Article  Google Scholar 

  • Farahani RZ, Elahipanah M (2008) A genetic algorithm to optimize the total cost and service level for just-in-time distribution in a supply chain. Int J Prod Econ 111(2):229–243

    Article  Google Scholar 

  • Fernandes KJ, Raja V, Whalley A (2006) Lessons from implementing the balanced scorecard in a small and medium size manufacturing organization. Technovation 26(5/6):623–634

    Article  Google Scholar 

  • Frohlich MT (2002) E-integration in the supply chain: barriers and performance. Decis Sci 33(4):537–556

    Article  Google Scholar 

  • Frohlich MT, Westbrook R (2001) Arcs of integration: an international study of supply chain strategies. J Oper Manag 19(2):185–200

    Article  Google Scholar 

  • Gunasekaran A, Patel C, Tirtiroglu E (2001) Performance measures and metrics in a supply chain environment. Int J Prod Oper Manag 21(1/2):71–87

    Article  Google Scholar 

  • Gunasekaran A, Patel C, McGaughey RE (2004) A framework for supply chain performance measurement. Int J Prod Econ 87(3):333–347

    Article  Google Scholar 

  • Hoffecker J, Goldenberg C (1994) Using the balanced scorecard to develop companywide performance measure. J Cost Manag 8(Fall):5–17

    Google Scholar 

  • Holweg M, Disney S, Holmstrom J, Smaros J (2005) Supply chain collaboration: making sense of the strategy continuum. Eur Manag J 23(2):170–181

    Article  Google Scholar 

  • Horvath L (2001) Collaboration: the key to value creation in SCM. Supply Chain Manag Int J 6(5):205–207

    Article  Google Scholar 

  • Hult GT, Ketchen DJ, Slater SF (2004) Information processing, knowledge development, and strategic supply chain performance. Acad Manag J 47(2):241–253

    Article  Google Scholar 

  • Jayaram J, Vickery S, Droge C (2000) The effects of information system infrastructure and the process improvement on supply chain performance. Int J Phys Distrib Logist Manag 30(3/4):314–330

    Article  Google Scholar 

  • Kaplan RS, Norton DP (1992) The balanced scorecard measures that drive performance. Harv Bus Rev 69(1):71–79

    Google Scholar 

  • Kaplan RS, Norton DP (1993) Putting the balanced scorecard to work. Harv Bus Rev 71(5):134–147

    Google Scholar 

  • Kaplan RS, Norton DP (1996) Using the balanced scorecard as a strategic management system. Harv Bus Rev 74(1):75–85

    Google Scholar 

  • Kotter JP (1995) Leading change: why transformation efforts fail. Harv Bus Rev 73(2):59–67

    Google Scholar 

  • Krause DR, Handfield RB, Scannell TV (1998) An empirical investigation of supplier development: reactive and strategic processes. J Oper Manag 17(1):39–58

    Article  Google Scholar 

  • Lambert DM, Cooper MC (2000) Issues in supply chain management. Ind Mark Manag 29(1):65–83

    Article  Google Scholar 

  • Lee HL, Billington C (1992) Management supply chain inventory: pitfalls and opportunities. Sloan Manag Rev 33(3):65–74

    Google Scholar 

  • Liker JK & Choi TY (2004) Building deep supplier relationships. Harvard Business Review Dec.: 104-113

  • Maloni MJ, Benton WC (1997) Supply chain partnerships: opportunities for operations research. Eur J Oper Res 101(3):419–429

    Article  Google Scholar 

  • Mansini A, Van Wassenhove LN (2009) ERP competence-building mechanisms: an exploratory investigation of configurations of ERP adopters in the European and U.S. manufacturing sectors. Manuf Serv Oper Manag 11(2):274–298

    Article  Google Scholar 

  • Minner S (2003) Multiple-supplier inventory models in supply chain management: a review. Int J Prod Econ 81(82):265–279

    Article  Google Scholar 

  • Narasimhan R, Jayaram J (1998) Causal linkages in SCM: an exploratory study of North American manufacturing firms. Decis Sci 29(3):579–605

    Article  Google Scholar 

  • Nitin Seth SG, Deshmukh PV (2006) A conceptual model for quality of service in the supply chain. Int J Phys Distrib Logist Manag 36(7):547–575

    Article  Google Scholar 

  • Park JH, Lee JK, Yoo JS (2005) A framework for designing the balance supply chain scorecard. Eur J Info Syst 14(4):335–346

    Article  Google Scholar 

  • Persson F, Olhager J (2002) Performance simulation of supply chain designs. Int J Prod Econ 77(3):231–245

    Article  Google Scholar 

  • Prahalad CK, Hamel G (1990) The core competence of the corporation. Harv Bus Rev 68(3):79–92

    Google Scholar 

  • Ramda TR, Morgan RM, Morton AR (2003) Efficient versus responsive supply chain choice. J Prod Innov Manage 20(6):430–443

    Article  Google Scholar 

  • Shepherd C, Günter H (2006) Measuring supply chain performance: current research and future directions. Int J Prod Perform Manag 55(3/4):242–258

    Article  Google Scholar 

  • Simon C, Pietro R, Mihalis G (2000) SCM: an analytical framework for critical literature review. Eur J Purch Supply Manag 6(1):67–83

    Article  Google Scholar 

  • Speckman RE, Spear J, Kamauff J (2002) Supply chain competence: learning as a key component. Supply Chain Manag 7(1):41–55

    Article  Google Scholar 

  • Swinney R, Netessine S (2009) Long-term contracts under the threat of supplier default. Manuf Serv Oper Manag 11(1):109–127

    Article  Google Scholar 

  • Tan KC, Lyman SB, Wisner JD (2002) Supply chain management: a strategic perspective. Int J Oper Prod Manag 22(6):614–631

    Article  Google Scholar 

  • Ward P, Zhou H (2006) Impact of IT integration and lean/JIT practices on lead-time performance. Decis Sci 37(2):177–204

    Article  Google Scholar 

  • Yin R (2003) Case study research design and method. Sage, Thousand Oaks

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Hsin Hsin Chang.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Chang, H.H., Hung, CJ., Wong, K.H. et al. Using the balanced scorecard on supply chain integration performance—a case study of service businesses. Serv Bus 7, 539–561 (2013). https://doi.org/10.1007/s11628-012-0175-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11628-012-0175-5

Keywords

Navigation