IDEAS home Printed from https://ideas.repec.org/a/eee/fambus/v1y2010i2p78-87.html
   My bibliography  Save this article

Strategically aligning family and business systems using the Balanced Scorecard

Author

Listed:
  • Craig, Justin
  • Moores, Ken

Abstract

We take an integrated approach to align issues that influence the family and business, systems. Using innovation action research (Kaplan, 1998) we illustrate how the Balanced Scorecard, that includes reference to family business challenges can be introduced and used to assist family, members, board members and management in a third-generation Australian family-owned business. The process of scorecard development is discussed and the development of the core essence, vision, and mission statements, strategic objectives, measures and targets, which can be scrutinized by family, business stakeholders to ascertain consistency with the vision of the company, is outlined. We suggest, that, in the family domain, the BSC assists in the education of, and communication among, family, members. From a business system perspective, the BSC is a useful tool to link and align the family with, the business, and this too has benefits in communication and education terms. A conceptual mapping, framework is introduced and propositions that will guide future projects are detailed.

Suggested Citation

  • Craig, Justin & Moores, Ken, 2010. "Strategically aligning family and business systems using the Balanced Scorecard," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 78-87, June.
    • Handle: RePEc:eee:fambus:v:1:y:2010:i:2:p:78-87
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1877858510000331
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kimberly A. Eddleston & Franz Willi Kellermanns & Ravi Sarathy, 2008. "Resource Configuration in Family Firms: Linking Resources, Strategic Planning and Technological Opportunities to Performance," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 26-50, January.
    2. Michael Lubatkin & William S. Schulze & N Dino Richard, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02311676, HAL.
    3. Anderson, Ronald C. & Mansi, Sattar A. & Reeb, David M., 2003. "Founding family ownership and the agency cost of debt," Journal of Financial Economics, Elsevier, vol. 68(2), pages 263-285, May.
    4. Lloyd Steier, 1998. "Confounding Market and Hierarchy in Venture Capital Governance: The Canadian Immigrant Investor Program," Journal of Management Studies, Wiley Blackwell, vol. 35(4), pages 511-535, July.
    5. Shaker A. Zahra & James C. Hayton & Donald O. Neubaum & Clay Dibrell & Justin Craig, 2008. "Culture of Family Commitment and Strategic Flexibility: The Moderating Effect of Stewardship," Entrepreneurship Theory and Practice, , vol. 32(6), pages 1035-1054, November.
    6. Michael Lubatkin & William S. Schulze & Richard N. Dino, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02276698, HAL.
    7. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    8. Aldrich, Howard E. & Cliff, Jennifer E., 2003. "The pervasive effects of family on entrepreneurship: toward a family embeddedness perspective," Journal of Business Venturing, Elsevier, vol. 18(5), pages 573-596, September.
    9. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    10. Nordqvist, Mattias & Melin, Leif, 2010. "The promise of the strategy as practice perspective for family business strategy research," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 15-25, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anja Heinicke, 2018. "Performance measurement systems in small and medium-sized enterprises and family firms: a systematic literature review," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 457-502, February.
    2. Martin Quinn & Martin R. W. Hiebl & Ken Moores & Justin B. Craig, 2018. "Future research on management accounting and control in family firms: suggestions linked to architecture, governance, entrepreneurship and stewardship," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 529-546, February.
    3. Tappeiner, Florian & Howorth, Carole & Achleitner, Ann-Kristin & Schraml, Stephanie, 2012. "Demand for private equity minority investments: A study of large family firms," Journal of Family Business Strategy, Elsevier, vol. 3(1), pages 38-51.
    4. Sanchez-Famoso, Valeriano & Iturralde Jainaga, Txomin & Maseda García, Amaia, 2015. "Kapital sozialaren garrantzia familia enpresetan," Revista de Dirección y Administración de Empresas, Universidad del País Vasco - Escuela Universitaria de Estudios Empresariales de San Sebastián.
    5. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 169-183.
    6. Songini, Lucrezia & Gnan, Luca & Malmi, Teemu, 2013. "The role and impact of accounting in family business," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 71-83.
    7. Martin R. W. Hiebl & Martin Quinn & Justin B. Craig & Ken Moores, 2018. "Management control in family firms: a guest editorial," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 377-381, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    2. Basco, Rodrigo, 2013. "The family's effect on family firm performance: A model testing the demographic and essence approaches," Journal of Family Business Strategy, Elsevier, vol. 4(1), pages 42-66.
    3. Wright, Mike & Kellermanns, Franz W., 2011. "Family firms: A research agenda and publication guide," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 187-198.
    4. Alain Verbeke & Liena Kano, 2012. "The Transaction Cost Economics Theory of the Family Firm: Family–Based Human Asset Specificity and the Bifurcation Bias," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1183-1205, November.
    5. Guidice, Rebecca M. & Mero, Neal P. & Greene, Juanne V., 2013. "Perceptions of accountability in family business: Using accountability theory to understand differences between family and nonfamily executives," Journal of Family Business Strategy, Elsevier, vol. 4(4), pages 233-244.
    6. Salvatore Sciascia & Pietro Mazzola & Joseph Astrachan & Torsten Pieper, 2012. "The role of family ownership in international entrepreneurship: exploring nonlinear effects," Small Business Economics, Springer, vol. 38(1), pages 15-31, January.
    7. Shaker A. Zahra, 2010. "Harvesting Family Firms' Organizational Social Capital: A Relational Perspective," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 345-366, March.
    8. Annalisa Croce & José Martí, 2017. "Financial constraints in family firms and the role of venture capital," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(1), pages 119-144, March.
    9. Hülsbeck, Marcel & Lehmann, Erik E. & Weiß, Dominik & Wirsching, Katharine, 2011. "Innovationsverhalten in Familienunternehmen," UO Working Papers 02-11, University of Augsburg, Chair of Management and Organization.
    10. Shaker Zahra, 2012. "Organizational learning and entrepreneurship in family firms: exploring the moderating effect of ownership and cohesion," Small Business Economics, Springer, vol. 38(1), pages 51-65, January.
    11. Herrera-Echeverri, Hernán & Geleilate, Jose Galli & Gaitan-Riaño, Sandra & Haar, Jerry & Soto-Echeverry, Nidia, 2016. "Export behavior and board independence in Colombian family firms: The reverse causality relationship," Journal of Business Research, Elsevier, vol. 69(6), pages 2018-2029.
    12. Dibrell, Clay & Moeller, Miriam, 2011. "The impact of a service-dominant focus strategy and stewardship culture on organizational innovativeness in family-owned businesses," Journal of Family Business Strategy, Elsevier, vol. 2(1), pages 43-51, March.
    13. Shaker A. Zahra, 2020. "Technological capabilities and international expansion: the moderating role of family and non-family firms’ social capital," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 391-415, June.
    14. César Camisón & José Antonio Clemente & Sergio Camisón-Haba, 2022. "Asset tangibility, information asymmetries and intangibles as determinants of family firms leverage," Review of Managerial Science, Springer, vol. 16(7), pages 2047-2082, October.
    15. González, Maximiliano & Guzmán, Alexander & Pombo, Carlos & Trujillo, María-Andrea, 2013. "Family firms and debt: Risk aversion versus risk of losing control," Journal of Business Research, Elsevier, vol. 66(11), pages 2308-2320.
    16. Steijvers, Tensie & Niskanen, Mervi, 2014. "Tax aggressiveness in private family firms: An agency perspective," Journal of Family Business Strategy, Elsevier, vol. 5(4), pages 347-357.
    17. Henssen, Bart & Voordeckers, Wim & Lambrechts, Frank & Koiranen, Matti, 2014. "The CEO autonomy–stewardship behavior relationship in family firms: The mediating role of psychological ownership," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 312-322.
    18. Lloyd P. Steier & James J. Chrisman & Jess H. Chua, 2004. "Entrepreneurial Management and Governance in Family Firms: An Introduction," Entrepreneurship Theory and Practice, , vol. 28(4), pages 295-303, July.
    19. Goel, Sanjay & Mazzola, Pietro & Phan, Phillip H. & Pieper, Torsten M. & Zachary, Ramona K., 2012. "Strategy, ownership, governance, and socio-psychological perspectives on family businesses from around the world," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 54-65.
    20. Binz Astrachan, Claudia & Astrachan, Joseph H. & Kotlar, Josip & Michiels, Anneleen, 2021. "Addressing the theory-practice divide in family business research: The case of shareholder agreements," Journal of Family Business Strategy, Elsevier, vol. 12(1).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:fambus:v:1:y:2010:i:2:p:78-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.