The role of the balanced scorecard (BSC) and the mediating effect of Entrepreneurial innovation (EI) on performance of Vietnamese enterprises

Abstract:

This study aims to analyze the influence of Balanced Scorecard on firm performance and the role of Entrepreneurial Innovation as a mediator in the process for firms in Vietnam. Data from a survey conducted by enterprises operating in HCMC will provide an opportunity to empirically test the relationships proposed in the conceptual model. The approach of this study is quantitative, based on a convenience sampling approach to data collection. Structural Equation Modeling (SEM) was employed to test the direct influence of the basic dimensions of BSC-Customer Perspective (CP), Financial Perspective (FP), Internal Process (IP), and Learning and Growth (LG) on EI and, in turn, on FIP. Results from this study would imply that firms, by adopting the BSC framework, can improve their innovative ability, thus leading to better performance outcomes. Furthermore, the study highlights the crucial mediating role of EI, demonstrating that innovation-based strategies are very instrumental in ensuring the creation of sustainable competitive advantages. The study argues that there should be a balance in the use of EI in the appraisal system to ensure the long-term success of any organization. Hence, these findings will be instrumental for managers, policy formulators, and researchers in enhancing firm performance through structured innovation strategies.