Balanced Scorecard and Competitive Strategies of Small and Medium Manufacturing Organizations

• Published in: WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS 2023-12, Vol.21, p.79-94
• Main Authors: Sharabati, Abdel-Aziz Ahmad, Ghaith, Assad Adnan, Morshed, Amer, Abusaimeh, Hesham, Al-Haddad, Shafig
• Format: Article
• Language: English
• ISSN: 1109-9526; 2224-2899
• DOI: 10.37394/23207.2024.21.8

The competition between Jordanian Small and Medium Manufacturing Enterprises (SMMEs) and imported products from foreign countries especially from China is increasing, so Jordanian SMMEs have to use different strategic tools to be able to compete with imported products. Therefore, this research purpose is to explore the effect of using a Balanced Scorecard (BSC) as a strategic tool on Jordanian SMMEs’ competitive strategies. The study uses a quantitative descriptive and cause-effect approach, and it is cross-sectional research. Exactly 120 managers and owners from 100 SMMEs completed a questionnaire. Then questionnaires were checked and coded against SPSS. The results show that implementing the BSC affects the competitive strategies of Jordanian manufacturing SMMEs, where the BSC has assigned the greatest weight to the focus strategy, the cost leadership strategy, and finally the differentiation strategy. Moreover, the customer perspective has the highest impact on competitive strategies, then the financial perspective, followed by the learning and growth perspective, and finally the internal processes perspective. This article illustrates how using a BSC is essential to measure and manage organizational performance via analyzing weaknesses and strengths, which helps to achieve competitive strategies. Therefore, owners and managers should use BSC as a strategic tool before setting strategic goals and objectives to achieve a competitive strategy. Finally, this research will help managers and owners of SMEs to improve their competitive position compared to foreign companies.