Modernizing organizations’ dynamic capabilities for competitiveness: the balanced scorecard perspective.

Abstract

The changing trends in business environments have made obsolete the traditional performance measurement of focusing on external accounting data within organizations. Organizations must now view all processes, activities, and strategies holistically, in order to achieve their business strategic objectives, vision, and mission. The major objective of this article is to report the findings on how organizations can modernize their dynamic capabilities by using the balanced scorecard approach to achieving competitiveness. Six strategic perspectives namely relationships and culture strategy, stakeholders’ strategy, processes and practices strategy, intellectual-capital strategy, value-creation strategy, and the corporate conscience strategy were proposed to influence the use of the balanced scorecard approach to modernize dynamic capabilities. Data were collected from a service oriented organization in South Africa using a close-ended questionnaire. Results indicated that, of the six perspectives suggested, the value-creation strategy ranked higher, whereas the corporate-conscience strategy ranked lowest. From the findings, a model was developed that could help organizations to modernize their dynamic capabilities using a balanced scorecard approach.