BALANCED SCORECARD IN MANAGEMENT ACCOUNTING AND ITS APPLICATION TO INSURANCE COMPANIES IN TURKEY

Purpose - This paper examines the insurance companies’ (in Turkey) opinions regarding balanced scorecards and techniques they used to measure performance. Methodology - A questionnaire form primary was sent to the Association of the Insurance and Reinsurance Companies in Turkey to identify sub-criteria to be used four perspectives of balanced scorecard. 41 experts responded to the questionnaire. In accordance with the data, another questionnaire was prepared to determine performance measurement, perspectives, criteria and balanced scorecard. Then the second questionnaire was sent to 43 companies (excluding pension companies because of different criteria). 30 companies responded to the questionnaire. The data about opinion of performance measurement and balanced scorecard were analyzed by using SPSS. However, the data about performance criteria, perspectives were analyzed by Analytical Hierarchy Process. For this analyze, we used the geometric mean of 30 companies. Findings- Findings indicate that insurance companies (66.7%) prefer balanced scorecard as a tool for performance measurement. It is observed that customer and financial perspectives were found to be the most highlighted perspectives than other ones, internal business processes and learning-growth perspectives, among performance perspectives utilized. Besides, two insurance companies use ‘competence perspective’ in addition to the four perspectives in their balanced scorecard. Conclusion- Insurance companies can make use of these criteria to improve their performance and work more effectively by elaborating the criteria which reduce their performance. In this way, as they improve their performance, they can contribute to the economy, especially the finance sector.

Keywords:

Firm performance, management accounting, balanced scorecard AHP, insurance companies,

PDF

___

Ağca, V., and Tunçer, E. (2006). Çok boyutlu performans değerleme modelleri ve bir balanced scorecard uygulaması. Afyon Kocatepe Üniversitesi İ.İ.B.F. Dergisi. 8: 173-193.
Ahn, H. (2001). Applying the balanced scorecard concept: an experience report, Long Range Planning, 34: 441-461.
Ak, R. and Öztayşi, B. (2009). Performance measurement of insurance companies by using balanced scorecard and anp. 10 th International Symposium on the Analytic Hierarchy Process, ISAHP July 29- August 1, Pittsburgh, USA
Akal, Z. (2000). İşletmelerde performans ölçüm ve denetimi çok yönlü performans göstergeleri. 4. Baskı Ankara: Ankara Milli Prodüktivite Yayınları
Alles, M. and Gupta, M. (2002). The impact of uncertainty and ambiguity when implementing the balanced scorecard, Asia-Pacific Journal of Accounting & Economics, 9 (2): 235-262.
Al-mawali, H.H., Zainuddin, Y., and Ali, N.N.K. (2010). Balanced scorecard (bsc) usage and financial performance of branches in Jordanian banking industry, World Academy of Science, Engineering and Technology, 66: 1722-1729.
Asosheh, A., Nalchigar, S., and Jamporazmey, M. (2010). Information technology project evaluation: a integrated data envelopment analysis and balanced scorecard approach, Expert Systems with Applications, 37: 5931-5938.
Bayrakdaroğlu, A., and Ege, İ. (2007). Performans ölçümünde alternatif bir yöntem, yatırımın nakit kârlılığı (CFROI) ve halka açık turizm şirketleri üzerine bir uygulama, VI. Anadolu İşletmecilik Kongresi. Kırıkkale. 94-108.
Bhagwat, R., and Sharma, M.K. (2007). Performance measurement of supply chain management: a balanced scorecard approach, Computers&Industrial Engineering, 53: 43-62
Braam, G.J.M and Nijsen, E.J. (2004). Performance effects of using the balanced scorecard: a note on the dutch experience, Long Range Planning, 37: 335-349.
Chytas, P., Glayks, M., and Valiris, G. (2011). A proactive balanced scorecard. International journal of information management. (online] URL:http://www.sciencedirect.com/science/article/pii/S0268401210001908.
Coşkun, A. (2005). İşletmelerde performans yönetimi: bir yönetim muhasebesi aracı olarak performans karnesi. Doktora Tezi. İstanbul Üniversitesi.
Çukurçayır, M.A., and Eroğlu, T. H.(2004). Yerel yönetimlerde yeniden yapılanmaya farklı bir yaklaşım: Verimlilik ve başarı karnesi. Sayıştay Dergisi, Nisan- Haziran, 53, 41- 66.
Davis, S., and Albright, T.(2004). An investigation of the effect of balanced scorecard implementation on financial performance, Management Accounting Research, 15: 135-153.
Eilat, H., Golany, B., ve Shtub A. (2008), R&D Project evaluation: an integrated DEA and balanced scorecard approach. Omega, 36, 895-912.
Gencer, C., and Çetin, T. (2011). Kurumsal performans karnesi ve havacılık sektöründe bir uygulama. Savunma Bilimleri Dergisi, 10: 105-121.
Ho, I.H., Cheng, T.F., and Lin, C.Y. (2001). The Construction of performance evaluation model for engineering educational systems, International Conference on Engineering Education. Oslo, Norway. Session 6B8.
Ittner, C. D., Larcker, D. F.,and Randall, T. (2003). Performance implications of strategic performance measurement in financial services firms, Accounting, Organizations and Society, 7-8: 715-741
Jing, F. F.,and Avery, G. C (2008). Missing links in understanding the relationship between leadership and organizational performance, International Business & Economics Research Journal, 7: 67-78.
Kallunki, J.P., and Silvola, Hanna. (2008). The effect of organizational life cycle stage on the use of activity-based costing, Management Accounting Research, 19: 62- 79.
Kaplan, R.S. and Norton, D. (2006). Alignment using the balanced scorecard to create corporate synergies.1st Edition. Boston: Harvard Business School Press.
Kaplan, R. S., and Norton D. (2004). Strategy maps converting intangible assets into tangible outcomes. 1st Edition. Boston: Harvard Business School Press.
Kaplan, R. S., and Norton D. (2001). The strategy-focused organization how balanced scorecard companies thrive in the new business environment. 2nd Edition Boston: Harvard Business School Press.
Kaplan, R. S., and Norton, D. P. (1996b). Translating strategy into action balanced scorecard. 1st Edition. Boston: Harvard Business School Press
Kaplan, R. S., and Norton, D. P. (1996a). Using the balanced scorecard as a strategic management system, Harvard Business Review, 74: 75–85.
Kaplan, R. S., and Norton, D. P. (1992). The balanced scorecard: measures that drive performance, Harvard Business Review, 70: 71–79.
Kılınç, İ., Mesci, M., and Güler Y. (2008). Dengeli ölçüm kartının (balanced scorecard) Alanya’daki dört ve beş yıldızlı otel işletmelerinde uygulanabilirliliğine yönelik bir araştırma. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 22: 155-177.
Lee, A.H.I., Chen, W. C., and Chang, C.J. (2008). A fuzzy ahp and bsc approach for evaluating performance of it department in the manufacturing industry in Taiwan, Expert Systems with Applications, 34: 96-107.
Malmi, T. (2001). Balanced scorecards in Finnish companies: a research note, Management Accounting Research, 12, 207-220.
Leung, L.C., Lam, K.C., and Cao, D. (2006). Implementing the balanced scorecard using the analytic hierarchy process& the analytic network process, The Journal of Operational Research Society, 57: 682-691.
Metawie, M. and Gilman, M. (2005). Problems with the Implementation of performance measurement systems in the public sector where performance is linked to pay: a literature review drawn from the UK, 3rd Conference on Performance Measurements and Management Control, Nice. 1-24.
Olve, N. G., Petri, C. J., Roy, J., and Roy, S. (2004). Twelve years later: understanding and realizing the value of balanced scorecards, Ivey Business Journey, 5-6: 1-7.
Person, R. (2009). Balanced scorecards and operational dashboards with Microsoft excel. 1st Edition. Wiley Publishing, Indianapolis
Rigby, D. (2003). Management tools 2003. [online] URL: www.bain.com.
Rigby, D. (2001). Management tools and techniques: a survey. California Management Review, 43: 139-160.
Speckbacher, G., Bischof, J. and Pfeiffer T. (2003). A descriptive analysis on the implementation of balanced scorecards in German-speaking countries, Management Accounting Research, 14: 361-387.
Sartorius, K., Trollip, N. and Eitzen, C. (2010). Performance measurement frameworks in a state controlled research organization: can the balanced scorecard (bsc) be modified?, South African Journal of Business Management, 41(2): 51-63.
Utkutuğ, Ç.P. (2008). Kurumsal performans yöntemi olarak toplam başarı göstergesi yöntemi, Endüstriyel Sanatlar Eğitim Fakültesi Dergisi 23: 55-78.
Uygur, A. (2009). Çok boyutlu performans değerleme modeli olarak dengeli başarı göstergesi uygulaması. Doğuş Üniversitesi Dergisi, 10: 148-159.
Wisner, P. (2010) Multidimensional performance measurement using the balanced scorecard. [online] URL:www.qfinance.com.
Yenice, E. (2007). Performans ölçümünde karşılaşılan sorunlar ve kurumsal karne (balanced scorecard) yaklaşımı, Bütçe Dünyası, 2: 95-100.
Yüksel, İ., and Dağdeviren, M. (2010). Using the analytic network process (Anp) for balanced scorecard (Bsc): A case study for a manufacturing firm, Expert Systems with Applications, 37: 1270-1278.

Journal of Economics Finance and Accounting-Cover

Yayın Aralığı: Yılda 4 Sayı
Başlangıç: 2014
Yayıncı: PressAcademia

Arşiv