Performance Measurement Using Balanced Scorecard Concept On Co-Operatives: Implication In Indonesia

Abstract: This study aims to apply the concept of balanced scorecards in measurement of co-operatives performance based on vision and mission. So far, the assessment of co-operative performance in Indonesia is not take into account the social hold co-operative, while co-operatives carrying a dual mission. Research conducted in in North Sumatera Province in Indonesia. The sample consisting of one hundred co-operatives that are still active run annual members meeting. Co-operative performance was assessed based on its fourth perspective i.e. membership, financial, internal process and learning & growth. The indicator key of cooperative performance was determined by taking into account the performance assessment on co-operatives, as articulated of State Minister for Co-operatives and SMEs No.129/KEP/M/KUMKM/XI/2002, and the regulations of the State Minister for Co-operatives and SME No.06/Per/M./KUKM/V/2006. Therefore, this research were contributed a method in assessing co-operative performance using Balanced Scorecard concept with the four perspective, namely membership perspective, financial perspective, internal process perspective and learning & growth perspective.

REFERENCES

[1] Bernardin, H. John and Russel. (1993). Human Resource Management, an Experiential Approach, International Edition: Mc Graw-Hill, Inc, Singapore.

[2] Buhovac, Adriana Rejc; Slapničar, Sergeja. (2007). The role of balanced, strategic, cascaded and aligned performance measurement in enhancing firm performance�, Economic & Business Review, Vol. 9 Issue 1, p47-78. 32p.

[3] Byars, L. L. and Rue, L. W. (2008). Human Resource Management, 7ed. McGraw Irwin, New York.

[4] Chalomklang, Chollada. (2010). Enhancement of the efficiency in the management of co-operative business by preparing the strategic plan on control and advices: a case study of Buengsamphan Agricultural Co-operative Ltd, Mezin�rodn� konference Ř�zen� a modelov�n� finančn�ch rizik Ostrava V�B-TU Ostrava, Ekonomick� fakulta, katedra Financ�, pp. 8. � 9.

[5] Cid, Mikel. (2004). Making the social economy work within the global economy. Ed. Akira Kurimoto and Garry Cronan. Review of International Co-operation, Vol. 97 No.1/2004; 80-92.

[6] Davis, S. and Albright, T. (2004). An investigation of the effect of balanced scorecard implementation on financial performance. Management Accounting Research, Vol.15(2), pp. 135- 153

[7] Ernita, Firmansyah, and Agus Al Rozi. (2014). Factors affecting the members participation on co-operative in North Sumatera. International Journal of Scientific & Technology Research, Vol.3(10) Octo.2014, pp. 113-117. ISSN 2277-8616.

[8] Hansen, D. R. and Mowen, M. M. (1996). Cost Management: Accounting and Control. South Western, Cincinatti, OH.

[9] Helfert, Erich. A. (1996). Techniques of Financial Analysis A Practical Guide to Managing and Measuring Business Performance, 9th edition. Publisher: Irwin Professional Publishing.

[10] Ittner, C. D. (2008). Does measuring intangibles for management purposes improve performance? A review of the evidence. Accounting and Business Research, 38(3):261-272.

[11] Ittner, C. D. and Larcker, D. F. (1995). Total quality management and the choice of information and reward system. Journal of Accounting Research, 33, pp.1- 34.

[12] Ittner, C. D., Larcker, D. F. and Meyer, M. W. (2003). Subjectivity and the weighing of performance measures: Evidence from a balanced scorecard. The Accounting Review, 78(3), pp.725- 758.

[13] Kaplan, R. S. and D. P. Norton (1996a). The Balanced Scorecard: Translating Strategy into Action, Boston, MA, Harvard Business School Press.

[14] Kaplan, R. S and D. P. Norton. (1996b). Strategic learning & the balanced scorecard. Strategy & Leadership, 24(5), pp.18-25.

[15] Kaplan, R. S. and D.P. Norton. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part I. Accounting Horizons, 15(1): 87-104.

[16] Kaplan, R. S. and D. P. Norton. (2002). The balanced scorecard - Measures that drive performance. Harvard Business Review, January-February: 71-79.

[17] Kaplan, R. S. and Norton, D. P. (1993). Putting the balanced scorecard to work. Harvard Business Review, September- October, pp.134- 147.

[18] Kaplan, R. S. and Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcome. Harvard Business School Press, Boston.

[19] Kaplan, R. S. and Norton, D. P. (1992). The balanced scorecard � measures that drive performance. Harvard Business Review, 70(1), pp.172- 180.

[20] Kaplan, R. S. and Norton, D. P. (1992). Using balanced scorecard � measures that drive performance. Harvard Business Review, 70(1), pp.172- 180.

[21] Kaplan, R. S. and Norton, D. P. (2007). Using the balanced scorecard as a strategic system. July, Harvard Business Review, 85(7-8), pp.150-161.

[22] Kaynak, H. (2003). The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management, 21, pp.405- 435.

[23] Ministry of Co-operatives, Small and Medium Enterprises of Republic Indonesia. (2013), (2014).

[24] Mutasowifin, A. (2002). Penerapan Balanced scorecard sebagai tolok ukur penilaian pada badan usaha berbentuk koperasi. Jurnal Universitas Paramadina Vol.1 No. 3, p: 245-26

[25] Poister, Theodore H. (2003). Measuring Performance in Public and Nonprofit Organizations. San Francisco, California: Jossey-Bass.

[26] Regulation of the Minister Co-operatives and SMEs, No.06/Per/M.KUKM/V/2006.

[27] Said, A. A., Hassab Elnaby, H. R. and Wier, B. (2003). An empirical investigation of the performance consequences of non- financial measures. Journal of Management Accounting Research, 15, pp.193- 223.

[28] Sinaga, Pariaman. (2005). Relationship between group cohesiveness, achievement motivation, entrepreneurship attitude, members participation, and co-operative performance of high performing and low performing co-operative in Bandung regency. Disertation, De Lasalle University of Manila. www.balancescorecard.org www.depkop.go.id