Role of organizational culture and actors on success and failure of balanced scorecard operationalization: A case study of a clustered firm


  • R.H.S. Lewis University of Colombo, Sri Lanka
  • K.K. Kapiyangoda University of Colombo, Sri Lanka


This paper investigates how organizational culture influenced successful and unsuccessful
operationalization of the balanced scorecard in a clustered apparel firm in Sri Lanka. Actor-Network Theory (ANT) was incorporated as the theoretical lens in a qualitative, case-study approach; data were gathered from interviews and documentary evidence. Findings revealed that the cluster that possessed a hierarchical culture, failed in operationalization of the balanced scorecard, while the cluster that possessed a clan culture (friendly, team-oriented and innovative) succeeded. The divisional leaders of the clusters were key actors who shaped their divisional controls, and the middle-level managers and lower-level employees also influenced operationalization of the management controls from the grass roots level. Non-human actors such as ERP systems and training on the balanced scorecard also influenced operationalization. Our study also revealed the existence of a subculture within a cluster (Cluster X) that led it to fail operationalization while revealing that the other cluster, which did not have any subcultures, succeeded.
Keywords: Organizational culture, subcultures, cultural diversity, balanced scorecard, apparel firm in Sri Lanka, clustered firm