A survey on the adoption of the balanced scorecard by selected companies in Kenya

Abstract

This study sought to establish the extent to which the Balanced Scorecard (BSC) system is in use in Kenya. Further the study sought to establish the reasons for adopting the BSC and the characteristics of companies using BSC. To achieve the above, primary data was collected through the use of structured questionnaire. A questionnaire was administered to thirty companies listed at the Nairobi Stock Exchange (NSE) and to thirty other companies not listed in the NSE. Data was collected only from thirty six companies. From the survey it is evident that most companies have adopted the BSC. These companies are local and foreign owned. Sixty nine percent companies were found to be using BSC. The main reasons for adopting BSe were found to have an effective strategic planning system and an improved control system. It was also established that BSC is used widely as a basis for executives' compensation. The researcher has established that companies with various characteristics have adopted the BSC. This means that BSC can be used widely across the various companies regardless of their size, turnover and their production technology