HOW ERP SYSTEMS EMPOWER THE BALANCED SCORECARD: ANALYSIS OF SCIENTIFIC PUBLICATIONS
УДК 338.24:004
Abstract
This study aims to explore the relationship between Enterprise Resource Planning (ERP) systems and the Balanced Scorecard (BSC), aiming for identifying the potential of ERP systems to enhance the effectiveness of BSC implementation. In the context of economic digitalization and increasing complexity of management processes, there is a growing need for integrated information systems for providing timely and reliable data for strategic decision-making. Against this backdrop, examining the impact of ERP systems on the development of strategic control tools, including the BSC, has become an important area of academic research.
The methodological basis of this study is a literature review. The analysis includes 58 scholarly publications from 1990 to 2023, covering the evolution of ERP and BSC concepts, their implementation, interaction, and implications for management accounting and control.
The results of the study show that when ERP systems are properly integrated with the BSC significantly improve strategic management performance by offering comprehensive, real-time, and aligned data. This allows organisations to track key performance indicators more quickly, ensure more accurate and timely control, and better align their actions with strategic goals. Moreover, ERP systems automate data collection and processing, allowing controllers to shift from routine tasks to analytical and advisory roles. Integrating the BSC into the ERP architecture expands the use of predictive and prescriptive analytics for strategy evaluation and adjustment.
The study argues that implementing the BSC outside the context of integrated information systems such as ERP limits its potential. However, a strong link between ERP and the BSC strengthens the proactive nature of strategic control and enables more agile responses to internal and external changes. Thus, ERP systems not only support the implementation of the BSC but also enhance its effectiveness as a tool for strategic management and control.
The findings are relevant for organizations seeking to improve management system performance through the integration of information technologies and strategic control tools. The paper is of interest to researchers and practitioners in the fields of management control, digital transformation, and strategic management, particularly in the context of regional and sectoral economies.
Downloads
References
Quixy. Digital transformation. 2025. URL: https://quixy.com/blog/top-digital-transformation-statistics-trends/#general-digital-transformation-statistics-and-trends.
Rom A., Rohde C. Enterprise resource planning systems, strategic enterprise management systems and management accounting: A Danish study. Journal of Enterprise Information Management. 2006. Pp. 50-66.
Alaskari O., Pinedo-Cuenca R., Ahmad M. M. Framework for implementation of Enterprise Resource Planning (ERP) Systems in Small and Medium Enterprises. 30th International Conference on Flexible Automation and Intelligent Manufacturing (FAIM2021). 2021. Pp. 424-430.
Couto C. A., Vendrametto O., Costa Neto P. L., Morais M. d., Brejao A. S. ERP Systems and BSC in the Operations Management: An Analysis of Results by Companies. International Federation for Information Processing. 2016. Pp. 478-484.
Meyssonnier F., Pourtier F. ERP, changement organisationnel et controle de gestion. Normes et Mondialisation. 2004. URL: https://shs.hal.science/halshs-00594030.
Mawadia A., Chapellier P., Eggrickx A. ERP et profil d'activites du controleur de gestion: une evolution par paliers? Management & Avenir. 2016. Pp. 125-149.
Granlund M., Malmi T. Moderate Impact of ERPS on Management Accounting: a lag or permanent outcome. Management Accounting Research. 2002. Pp. 299-321.
Zouine A. Les facteurs cles de succes dans la mise en reuvre d'un ERP en controle de gestion: le courant structuration. Revue Frangaise d'Economie et de Gestion. 2020. Pp. 209-230.
Rahardja U. Implementation of Enterprise Resource Planning (ERP) in Indonesia to Increase the Significant Impact of Management Control Systems. APTISI Transactions on Management (ATM). 2023. Pp. 145-152.
Snyder H. Literature review as a research methodology: An overview and guidelines. Journal of Business Research. 2019. Vol 104. Pp. 333-339. https://doi.org/10.1016/j.jbusres.2019.07.039.
Reix R., Fallery B., Kalika M., Rowe F. Systemes d'information et management (7 ed.). Paris: Magnard-Vuibert. 2016.
Chapman C. S., Kihn L.-A. Information system integration, enabling control and performance. Accounting, Organizations and Society. 2009. Pp. 151-169.
Davenport T. H. Putting the Enterprise into the Enterprise System. Harvard Business Review. 1998. Pp. 121-131.
Edwards J. B. ERP, Balanced Scorecard, and IT: How do they fit together? The Journal of Corporate Accounting and Finance. 2001. Vol 12 (5). Pp. 3-12. https://doi.org/10.1002/jcaf.1001.
Davenport T. H. Mission Critical: Realizing the promise of Enterprise Systems. Boston, 2000.
Al-Mashari M., Al-Mudimigh A., Zairi M. Enterprise Resource Planning: A taxonomy of Critical Success Factors. European Journal of Potential Research. 2003. Pp. 352-364.
El-Baz K. A., El-Midany T. T., Ghattas M. S., AbouEleaz M. A. The Impact of Enterprise Resource Planning (ERP) Implementation on Performance of Firms: A Case to Support Production Process Improvement. Mansoura Engineering Journal. 2023. Pp. 1-12.
Gelinas J. U., Dull R. B., Wheeler P. R., Hill M. C. Accounting Information Systems (11 ed.). Boston, 2018.
Glenn G. Enterprise Resource Planning-100 success secret. Brisbane, 2008.
Richardson V. J., Chang C. J., Smith R. Accounting Information Systems. New York: McGraw-Hill Education. 2021.
Meyssonnier F., Pourtier F. Les ERP changent-ils le controle de gestion? Association Francophone de Comptabilite | Comptabilite — Controle — Audit. 2006. Pp. 45-64.
Dechow N., Gronlund M., Mouritsen J. Management Control of complex organization: Relationship between management accounting and information technology. Handbook of Management Accounting Research. 2006. Pp. 625-640.
Khanna K., Arneja G. P. Choosing an Appropriate ERP Implementation Strategy. IOSR Journal of Engineering. 2012. Pp. 478-483.
Gargeya B. V., Brady C. Success and failure factors of adopting SAP in ERP system implementation. Business Process Management Journal. 2005. Pp. 501-516.
Bingi P., Sharma M. K., Godla J. K. Critical issues affecting ERP implementation. Information Systems Management. 1999. Pp. 7-14.
Nah F. F.-H., Lau J. L.-S., Kuang J. Critical factors for successful implementation of enterprise systems. Business Process Management Journal. 2001. Pp. 285-296.
Barker T., Frolick M. N. ERP Implementation failure — a case study. Information Systems Management. 2003. Pp. 43-49.
Wong A., Scarbough H., Chau P., Davison R. Critical Factors in ERP implementation. PACIS. 2005.
Chakravorty S. S., Dulaney R. E., Franza R. M. ERP implementation failures: a case study and analysis. Int. J. Business Information System. 2016. Pp. 462-476.
Salazar-Fierro F. A., Guaman-Cupacan B. R., Leon-Fernandez C. V., Pineda-Manosalvas C. A., Reascos-Paredes I. M., Herrera-Quispe J. A. Failures in the implantation of Enterprise IT Application: Case studies and their main causes. Revista Colombiana de Computacion. 2023. Vol 24 (02). Pp. 1-11. https://doi.org/10.29375/25392115.4663.
Holland C. P., Light B. A Critical Success Factors Model for ERP Implementation. IEEE Software. 1999. Pp.30-36.
Seng Woo H. Critical Success Factors for Implementing ERP: the case of Chinese electronics. Journal of Manufacturing Technology Management. 2007. Pp. 431-442.
Garcia-Sanchez N., Perez-Bernal L. E. Determination of Critical Success Factors in Implementing an ERP System: A Field Study in Mexican Enterprises. Information Technology for Development. 2007. Pp. 293-309.
Ranjan S., Jha V. K., Pal P. Literature review on ERP implementation challenges. Int. J. Business Information Systems. 2016. Pp. 388-402.
Kaplan R. S., Norton D. The Balanced Scorecard-Measures that Drives Performance. Harvard Business Review. 1992. Pp. 71-80.
Hepworth P. Weighing it up — a literature review for the balanced scorecard. Journal of Management Development. 1998. Pp. 559-563.
Kaplan R. S., Norton D. P. Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. American Accounting Association Accounting Horizon. 2001. Pp. 87-104.
Drury C. T. Management and Cost Accounting. Boston, 2020.
Kaplan R. S., Norton D. P. Linking the Balanced Scorecard to Strategy. California Management Review. 1996. Vol. 39 (1). Pp. 53-79.
Tawse A., Tabesh P. Thirty years with the balanced scorecard: What we have learned. Business Horizons. 2023. Vol. 66 (1). Pp 123-132.
Kaplan R. S., Norton D. Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review. 1996.
Brown J. B., McDonnell B. The balanced score-card: short-term guest or long-term resident? International Journal of Contemporary Hospitality Management. 1995. Pp. 7-11.
Lueg R. Strategy maps: the essential link between the balanced scorecard and action. Journal of Business Strategy. 2015. Pp. 34-40.
Kumar S., Lim W. M., Sureka R. J., Bamel U. Balanced scorecard: trends, developments, and future directions. Review of Managerial Science. 2024. Pp. 2397-2439. https://doi.org/10.1007/s11846-023-00700-6.
Appelbaum D., Kogan A., Vasarhelyi M., Yan Z. Impact of Business Analytics and Enterprise Systems on Managerial Accounting. International Journal of Accounting Information Systems. 2017. Pp. 29-44.
Wahjudi D., Palit H. N., Ping S. Enhancing Organizational Performance Through Integrated ERP-Based Balanced Scorecard Systems: A Case Study. The 1st International Conference on Creative Design, Business and Society (1st ICCDBS). 2023. Pp. 112-123. https://doi.org/10.18502/kss.v9i32.17430.
Granlund M., Mouritsen J., Vaassen E. On the relations between modern information technology, decision making and management control. International Journal of Accounting Information Systems. 2013. Pp. 275-277.
Scapens R. W., Jazayeri M. ERP systems and management accounting change: opportunities or impacts? A research note. European Accounting Review. 2003. Pp. 201-233.
Granlund M., Mouritsen J. Special section on management control and new information technologies. European Accounting Review. 2003. Pp. 77-83.
Kanellou A., Spathis C. Accounting benefits and satisfaction in an ERP environment. International Journal of Accounting Information Systems. 2013. Pp. 209-234.
Spraakman G., Sanchez-Rodriguez C., Tuck-Riggs C. A. Data analytics by management accountants. Qualitative Research in Accounting & Management. 2021. Pp. 127-147.
Hammouch H. Enhancing Management Control Through ERP Systems: A Comprehensive Literature Review. iRASD Journal of Management. 2024. Pp. 125-133.
Granlund M. On the interface between management accounting and modern information technology — A literature review and some empirical evidence. The 30th Annual Congress of the EAA. Lisbon. 2007.
Rathore S. D., Oza H. S. A Study on Relationship Between ERP Implementation and Management Accounting Practices. International Journal of Advanced Research. 2017. Pp. 808-820.
Spraakman G., O'Grady W., Akroyd C. ERP systems and management accounting: new understandings through “nudging” in qualitative research. Journal of Accounting & Organizational Change. 2018. Pp. 120-137.
Weerasekara U., Gooneratne T. Enterprise resource planning (ERP) system implementation in a manufacturing firm: Rationales, benefits, challenges and management accounting ramifications. Accounting and Management Information Systems. 2023. Pp. 86-110.
Rouissi C. The influence of the Enterprise Resource Planning (ERP) on Management Controllers: A Study in the Tunisian Context. International Journal of Business and Management. 2020. Pp. 25-35.
Teittinen H., Pellinen J., Jarvenpaa M. ERP in action — Challenges and benefits for management control in SME context. International Journal of Accounting Information System. 2013. Pp. 278-296.
Granlund M. On the interface between accounting and modern information technology. Turku. Turku School of Economic. 2009.
Copyright (c) 2025 F. Berarma, F. Latreche
This work is licensed under a Creative Commons Attribution 4.0 International License.
Economics Profession Business is a golden publisher, as we allow self-archiving, but most importantly we are fully transparent about your rights.
Authors may present and discuss their findings ahead of publication: at biological or scientific conferences, on preprint servers, in public databases, and in blogs, wikis, tweets, and other informal communication channels.
Economics Profession Business (EPB) allows authors to deposit manuscripts (currently under review or those for intended submission to EPB) in non-commercial, pre-print servers such as ArXiv.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
