The thesis examines why and how a Malaysian telecommunication company TM, adopted balance scorecard (BSC). The focus lies in the new institutional theory (NIS), particularly the institutional change model of Hopper and Major (European Accounting Review, 16(1), pp. 59-97, 2007), supplemented by theoretical triangulation involving economic, labour process and actor network theories to enrich observations and extend theory. An explanatory case study is used which employed semi structured interviews, document reviews, informal conversation and observations as method of data collection. Why TM adopted BSC lay in a complex, interrelated chain of institutions, including the government as the main shareholder, management consultants and competitor. BSC was seen as a symbol of improved competitiveness and efficiency but its diffusion and adoption involved mimetic, coercive and normative pressures. The initial reason of adopting BSC was mimetic as a way for TM to move forward after privatisation process. In addition, BSC was also seen as a tool for TM to better transformed itself in order to compete with new players in the telecommunication industry. It is also an act of gaining legitimacy as TM moved from government agency to a privatised entity. Hence, adopting new management accounting practice provides TM an acknowledgment as a private entity. Government transformation programme in 2004 acts as coercive pressure for TM to fully redesign the BSC and tie it to the reward system. Various actors were mobilized to translate and modify BSC to become a working practice in the company. This translation process continues even after the implementation of BSC as new actors join the organisation and existing actors left the organisation. TM executives adopted and used BSC whereas the operational employees showed resistance to the new system. Thus, two separate performance reward systems continue to be practiced in TM which one is based on BSC methodology while the other following the old performance measurement system.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:603199 |
| Date | January 2014 |
| Creators | Mohd Said, Julia Binti |
| Contributors | Wickramasinghe, Danture |
| Publisher | University of Manchester |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | https://www.research.manchester.ac.uk/portal/en/theses/the-implementation-of-balanced-scorecard-in-a-malaysian-government-linked-company-an-institutional-perspective(0cb343c0-b1ec-464e-9b85-041936328eb0).html |
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