Factors of Successful Implementation of the Balanced Scorecard Model in Public Enterprises

Abstract

The research examines the determinants influencing the implementation of the Balanced Scorecard (BSC) in public enterprises within the Federation of Bosnia and Herzegovina. The study is based on data collected from 138 respondents working in finance, accounting, and strategic management, and evaluates seven hypotheses to capture organisational, human, and economic factors that may drive or hinder adoption. Empirical results indicate that the size of the enterprise, the capabilities of professional accountants, the financial costs of using the BSC, and its demonstrated connection with operational performance significantly influence adoption decisions. Public enterprises with stronger capacities, adequate staffing, and available resources are more likely to integrate this model, and the perception of its cost-effectiveness further facilitates acceptance. Conversely, organisational culture, management awareness, and perceived benefits were not confirmed as influential factors in this sample, which may reflect the limited variability of responses rather than their actual irrelevance. Overall, the findings suggest that successful implementation of the BSC requires the alignment of financial feasibility, professional expertise, and institutional capacity. Strengthening leadership engagement and cultivating a supportive organisational culture are also identified as important conditions for long-term effectiveness. By providing evidence from the public sector in Bosnia and Herzegovina, this study contributes to the literature on performance management and underscores both the opportunities and challenges associated with applying the BSC.