Mar 07



This paper compares balanced scorecard and intellectual capital and finds important differences between their theoretical underpinnings, which suggest that the breath of indicators will work differently in organizations. Analyzing texts about balanced scorecard and intellectual capital, the paper discusses not the obvious similarities – that they are both integrated performance management systems – but four more aspects: strategy, organization, management, and indicators.

Comparing these four dimensions the paper discusses the differences arising from the very different theories of strategy that they presuppose: competitive advantage versus competency strategy.

The paper suggests that the very different notions of strategy that underpin the balanced scorecard and the intellectual capital approach make such comprehensive performance management systems behave in very different ways – the difference between a tightly coupled and a loosely coupled system accounts for this.

The main limitation is that the paper is primarily a literature study and therefore it is not certain that in practical situations companies will necessarily adopt the theoretical perspectives mobilised behind balance scorecard and intellectual capital.

Keywords: Balanced scorecard, Intellectual capital, Knowledge management, Performance management

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