Small and medium scale enterprises (SMEs) are very important in any economy and doubly so in a developing economy such as Nigeria, more also balanced scorecard is a framework which has been widely used during the last decade for performance measurement in different disciplines. There for the study aimed to investigate whether there is any relationship between the internal business process and financial perspective of balanced scorecard on the performance of SMEs in Ilorin; to examine the relationship between the innovation and customer perspective of balanced scorecard on the performance of SMEs in Ilorin and to assess the effect of non-adoption of balanced scorecard by small and medium scale enterprises in Ilorin. The descriptive survey research design was used, model was specified and Simple random sampling was used in determining the sample size. 100 copies of questionnaires were distributed to management team of the sampled SMEs (10 each to every selected SME), out of which 91 were duly completed and returned. Data was presented by the use of frequency and percentage tables. Hypotheses were tested using regressions analysis and correlation and findings from the study revealed that financial perspective emphasize the ability to deliver maximum value to the customer at minimum cost and this sustained stakeholder value also high number of Small and Medium Scale Enterprises uses performance measures & indicators similar to those typically included within a balanced scorecard model. It was concluded that there is significance relationship between the innovation and customer’s perspective of balanced scorecard on the performance of SMEs in Ilorin and there is also a significance relationship between the internal business process and financial perspective of balanced scorecard on the performance of SMEs in Ilorin. It was recommended that the performance measures & indicators similar to those typically included within a balanced scorecard model can also be used to measure some or all of the four perspectives of balanced scorecard furthermore, there should be an awareness to management/owners of Small and Medium Scale Enterprises on usefulness in the adoption of balanced scorecard techniques.
TABLE OF CONTENTS
pages
Title page i
Certification ii
Attestation iii
Dedication iv
Acknowledgement v
Table of contents vii
Abstract x
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Research Questions 4
1.4 Objectives of the Study 5
1.5Hypotheses of the Study 5
1.6 Justification for the Study 6
1.7 Scope of the Study 6
1.8 Definition of Terms 7
1.9Plan of the Study 7
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 8
2.2 Conceptual Issues 8
2.2.1 Performance Measurement 8
2.2.2 Financial Measures of Performance 9
2.2.3 Non-financial Measures of Performance 10
2.2.4 Balanced Score Card 11
2.2.5 The BSC as a Performance Measurement System 12
2.2.6 The BSC as a Strategic Management System 14
2.2.7 The Four Perspectives of the BSC 17
2.2.8 Benefits of Adopting the BSC 19
2.2.9 Problems that may Arise in Introducing the BSC 21
2.2.10 Small and Medium scale Enterprise 24
2.3 Theoretical Background 26
2.3.1 Agency Theory 26
2.3.2 Stakeholder Theory 26
2.3.3 Contingency Theory 27
2.4 Empirical Evidences 29
2.5 Research Gap Filled 39
CHAPTER THREE: METHODOLOGY
3.1. Model Specification 41
3.2 Research Design 42
3.3 Population and Sample Size 42
3.4 Sampling Technique 42
3.5 Sources of Data 43
3.5.1 Secondary Data 43
3.5.2 Primary Data 43
3.6 Method of Data Collection 44
3.7 Method of Data Analysis 44
CHAPTER FOUR: PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA
4.1 Introduction 46
4.2 Data Presentation and Analysis 46
4.3 Analysis of Operational Variables 50
4.4 Model Estimation Result and Testing of Hypotheses 55
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 60
5.2 Conclusion 60
5.3 Recommendations 61
5.4 Suggested Areas for Further Research 62
References 63
Appendix I 66
Appendix II 69
Appendix III 78
