Strategic alignment of manufacturing processes in a Balanced Scorecard-based compensation plan: a theory illustration case

Abstract

The present paper integrates the operations management and the management control literature in order to focus on the issue of strategic alignment in a BSC-based compensation plan. The specific objectives for this paper are twofold. First, the study offers a theoretical foundation for the thesis that alignment of manufacturing processes with business strategy will result in higher organizational performance. Second, a case study at a Belgian manufacturing division of a Danish corporate company shows that it is not possible to realize higher organizational performance when there is no strategic alignment of manufacturing processes.

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