Using the Balanced Scorecard to Measure the Performance of Small and Medium- Sized Garment Enterprises in Vietnam

Improving performance is always a strategic issue for any business operating in the market economy, as it is an important basis for the survival and development of the business. In order to evaluate the performance of enterprises, it is necessary to use financial and non-financial indicators. In models of appreciation of performance, the Balanced Scorecard (BSC) is one of the best model. Thus, this research sought to determine the application of BSC to measure the performance suitable for small and medium-sized (SMEs) garment enterprises in Vietnam. The research design was a survey conducted on a target population of the garment companies in Vietnam with a sample size of 238 garment SMEs. The study used questionnaires in data collection. In order to analyze the data, the research tested the reliability of the observation variable and performed exploratory factor analysis to examine the convergence of the observed variables in appling BSC to set up a rating system for garment SMEs. The study found that the indicators in the financial perspective for garment SMEs only include the traditional financial criteria taken from accounting books. On the other hand, in terms of internal processes, the research also adds the following criteria- Supplier-to-Supplier ratio, Supplier-to-Supplier Timeliness, Supplier Percentage Regularly supplied to the enterprise. These indicators are highly appreciated by managers of garment SMEs and in line with the production characteristics of garment SMEs in Vietnam.