A Proposed Strategic Balanced Scorecard Model: Strategic Control System and Organizational Performance in Malaysian Automotive Industry

Abstract

In the globalization era, Malaysian automotive industry is facing greater challenges due to the general quest for high quality, the requirement and regulation of ASEAN Trade Area (AFTA) and the increasing competition between local car and foreign car manufactures. Therefore, to increase the competitiveness, firms apply many quality program and initiatives such as Balanced Scorecard (BSC). The BSC strategy helps managers to manage strategic plan, monitor and control the performance result, encourages effective communication and discussion, provides reward based system, and feedback with quick action approach that aligns with organization goal. Managers need to focus on both financial and non-financial measures (customer, internal business process, and innovation and learning) to achieve organizational goals. The aim of this paper is to review the relationship between the strategic control system and organizational performance for Malaysian Automotive industry.