THE EVALUATION OF BALANCED SCORECARDS FOR ?SMALL AND MEDIUM ENTERPRISES? (UKM).

Balanced Scorecard (BSC) has the same concept as the tool of Structural Equation Modeling (SEM) that has a concept of causal relation. Meanwhile, when the research model has a concept of SEM, BSC is employed as its variable. In fact, BSC becomes an efficient and effective tool as a performance evaluation and it can provide an integrated view to organizational performance as a whole. Then the researcher developed the intellectual BSC knowledge based system for its operational planning strategy based on its perspective. This research was aimed at knowing the effect of balanced scorecard variable that was adjusted with the tool of SEM. As a means of strategic planning in the future, this kind of modeling was becoming a virtual obligatory in a business if we want it to be in existence. A great sample was required in this research to fulfill maximum likelihood estimation, primary data, and the scoring of seven-point scale. Meanwhile, the research model was the combination between model one and two step to do testing the measurement model, structural equation modeling, and modification model. The result of model test showed that there was some indication of multi co-linearity so that the model can be changed into one step model. Having been modified, the model of goodness of fit indices showed that the score was quite good. Two variables of BSC affected significantly, and the two others did not affect significantly. The implication of goodness simulation model of fit modification resulted DF = 178, Chi-square = 206.850, P = 0,068, CMIN/DF = 1.162, GFI = 0.847, AGFI = 0.802, CFI = 0.972, TLI = 0.967 and RMSEA = 0.04. Based on this analysis it was known that there were only two marginal scores considered to be good.