Balanced scorecard and hoshin kanri: dynamic capabilities for managing strategic fit

Barry Witcher, Vinh Chau

Research output: Contribution to journalArticlepeer-review

57 Citations (Scopus)
12 Downloads (Pure)


Purpose - The paper seeks to combine the uses of the balanced scorecard and hoshin kanri as integrative dynamic capabilities for the entire strategic management process. It aims to posit a model for the combination of these long- and short-term organisational activities as a framework for a senior level to manage a firm's strategic fit as an integrated organisation-wide system that links top management goals to daily management. Design/rnethodology/approach - The resource-based view of strategy is explored for its relevance to how a combined balanced scorecard and hoshin kanri approach serves as a high-order dynamic capability. Examples are given from Canon, Toyota and Nissan, of how core capabilities are managed to show how strategy is executed cross-functionally across a firm's functional hierarchy. Findings - The study finds that strategic management of the organisation should consider the long-term strategy as well as the short-term capability. Important to this are core capabilities and core competences, cross-functional management, and top executive audits, which, when managed properly, explicate a new view of strategic fit, as a form of nested hierarchies of dynamic capabilities. Originality/value - The paper is the first exposition of how balanced scorecard and hoshin kanri practices may usefully complement each other in strategic management. It is a useful framework for dynamically managing sustained competitive advantage.
Original languageEnglish
Pages (from-to)518-538
Number of pages21
JournalManagement Decision
Issue number3
Publication statusPublished - 2007


  • Corporate strategy
  • Hoshin kanri
  • Balanced scorecard
  • Competences

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