Strategic objectives identification and performance: an exploratory study in the context of the balanced scorecard

Purpose The strategic objectives identification process (SOIP) has an essential value linked to other strategic tools and aids in overcoming significant organisational challenges and, thus, has a potential role in achieving organisational success. Nowadays, the balanced scorecard (BSC) is used as a tool for SOIP by a large number of organisations. This study examines how firms adopt SOIP using the BSC and explores the link between this adoption and performance. Design/methodology/approach A two-stage approach of content and cluster analyses is used and is based on a sample of 143 Saudi listed firms. Findings The results reveal the following: suitability of the BSC as a tool for SOIP; an overall high level of SOIP adoption by firms; the identification of three firms' patterns–higher, average and lower levels–of adopting SOIP; and a higher level of adoption is associated with a higher level of performance and vice versa. These patterns and findings are further analysed and discussed, offering practical and research implications. Originality/value Little is known empirically about firms' different patterns of adopting SOIP using BSC and, thus, how these patterns link to performance. This study contributes to the existing literature by addressing this important issue.