Comparison of the Balanced Scorecard Perspectives for eCommerce Companies

Abstract

The Balanced Scorecard Framework is utilized in this paper to derive performance measurement parameters for eCommerce companies, and examine the relevance of both non-financial and financial indicators by documenting whether indicators representing the various BSC perspectives differentiate between companies that subsequently failed and those that remained viable through 2000–2001. The focus on eCommerce companies is based on an analysis of the literature on eCommerce business models and practice that revealed clear parallels between the parameters that are theorized as important for the success of eCommerce companies and the non-financial BSC perspectives. In the literature, the customer perspective is specifically highlighted for eCommerce companies as a critical part of the value chain through which business value is created. Multiple methods are utilized to examine the relevance of non-financial and financial indicators, including efficiency scores generated by DEA methodology, as well as traditional key performance indicators representing each of the four BSC perspectives. Analyses of these data are supplemented by case histories and analyses of selected examples of successful and non-successful companies to explore patterns that highlight specific non-financial dimensions as possible factors contributing to the continued viability or failure of companies during the technology downturn of 2000. Results highlight the significance of the customer and the learning and growth perspectives in differentiating between successful and unsuccessful companies.