The Balanced Scorecard System: The Perspective of International Orientation

Introducing a balanced scorecard system may assist managers in identifying four dimensions and recognizing cross-functional interactions, which can ultimately lead to better problem solving, decision making, and business growth. Monitoring a company's key performance indicators (KPIs) can improve organizational performance and enhance shareholder value. A survey was prepared and distributed to 60 managers from Croatian businesses to investigate the relationship between business success as assessed by a balanced scorecard system. The questions were based on the balanced goal system, a four-dimensional model for measuring business performance that covers financial performance, knowledge, and employees, processes success, and market performance. It was used to assess managers' perceptions of foreign and domestic businesses. Furthermore, a two-step cluster analysis was conducted. The results indicated that the respondents who are dominantly oriented towards the international markets share identical perspectives on the importance of the company's performance as those in the predominantly domestic markets.