Balanced scorecard usage as performance measurement tool for hotel and restaurant SME’s growth strategy.

Abstract

Performance measurement and management is very critical for any business growth and success. The study assessed the balanced scorecard (BSC) usage as a performance measurement tool for hotel and restaurant small and medium enterprises (SMEs’) growth strategy. BSC is a widely used performance measurement system that had contributed to the growth of many organizations. The study used explanatory sequential mixed method. This method requires the collection of quantitative data first and analysed before qualitative data collection and analysis. The overall results indicated that the majority of hotel and restaurant SMEs (57%) used the balanced scorecard perspectives for organizational growth strategy in Eswatini. The Chi Square results indicated a significant association between non-financial and financial measures (p= .000). The findings also revealed that of hotel and restaurant SMEs (68.8%) used financial and non-financial critical success factors The Chi Square test indicated the significance association between financial and non-financial critical success factors (p= .000). The study findings revealed that majority of hotel and restaurant SMEs (68.9%) had adopted innovation, shared valued, trust culture and cluster theories for organizational growth strategy. The Chi Square tests results also revealed a significant association between theoretical attributes (p= .000). The findings revealed that majority of hotel and restaurant SMEs (63.3%) recognised financial and non-financial factors for hotel and restaurant growth. The results revealed the association between financial and non-financial factors for hotel and restaurant SMEs growth strategy (p= .000). The follow up interview results give a clear reason why the hotel and restaurant SMEs sector used the balanced scorecard as performance measurement tool. Majority of participates cited reason such as customer service demands, new information, innovation, shared vision, trust culture, improve teamwork and improve employees fair working conditions contributes to hotel and restaurant SMEs growth strategy. However, participants acknowledged hotel and restaurant SMEs deficiency in skills development and employees non-participatory to financial planning affects the growth strategy. The study contributed to general knowledge through the development of Conceptual Framework, Performance Measurement Framework and Implementation Plan, hotel and restaurant SMEs could endorse for monitoring and evaluating their growth strategy.