The reciprocal mediating effect of digitalization and BSC on their relationship with firm performance

Abstract

Research objective This research aims to examine the impact of reciprocal mediating effect of digitalization and Balanced Scorecard (BSC), as one of the most commonly used management accounting innovation, on their relationship with overall performance of business firms, and to examine the effect of innovation strategy on firm digitalization level. Research method: Data is collected through a Survey conducted in the first half of 2022 on business firms, excluding financial institutions like banks, insurance companies and other financial establishments. A sample was selected that included 500 profitmaking firms from various sectors, service and industrial, and the response rate reached 44 %, while the usable rate reached 36.4 %. Simple regression analysis is used to test the relationship between innovation strategy and digitalization, and Process Macro model for SPSS is used to test the reciprocal mediating effect of digitalization and BSC on their relationship with firm performance. Research results: results indicated that futuristic innovation strategy affect digitalization level within firms. Furthermore, The reciprocal mediating effect of digitalization and BSC on their ... Dr/