Diffusion of the Balanced Scorecard: The Experience of a Sri Lankan Financial Institution

Over the past two decades various management accounting innovations, such as the balanced scorecard, activity-based costing, activity-based management and target costing have been diffused to organizations across the world. Although the merits of these tools and their application in various countries have been well researched, currently there is only limited understanding of how and why such tools get diffused in different organizational contexts. The purpose of this paper is to examine how and why the balanced scorecard has been diffused in a leading private sector financial institution in Sri Lanka. We adopt the qualitative methodology and the case study approach, and the data has been collected through in-depth interviews conducted with various managers and through documentary sources. The evidence gathered show that demand-side as well as supply-side forces have been significant in the diffusion of the balanced scorecard. This study makes an important contribution to the literature by offering a dynamic perspective on the diffusion of management accounting innovations, through a theoretical framework which brings together the supply-side as well as the demand-side forces into a single innovation diffusion model. The study also provides valuable insights for managers into the implementation and diffusion of management accounting tools such as the balanced scorecard.


Introduction
Over the past two decades a number of management accounting innovations, such as the balanced scorecard (BSC), activity-based costing (ABC), activity-based management Tharusha N. Gooneratne, PhD is a Senior Lecturer in the Department of Accounting, Faculty of Management and Finance, University of Colombo. E-mail: tharushng@dac.cmb.ac.lk (Corresponding author) (ABM) and target costing have made their presence in the contemporary business environment. Although the merits of these tools and their application in various countries have been the subject of scholarly inquiry, currently little is known about how and why these tools get diffused in different organizational contexts. Different facets of the diffusion of management accounting innovations have however been on the agenda of accounting researchers. This ranges from the diffusion of management accounting innovations in the public sector (Jackson & Lapsley 2003, Lapsley & Wright 2004 to country-specific studies such as the questionnaire survey on the diffusion of new management accounting practices in manufacturing firms in India (Joshi 2001), diffusion of the transfer pricing innovation in a government trading enterprise in Australia (Perera, McKinnon & Harrison 2003), ABC diffusion in France (Alcouffe, Berland & Leyant 2008), a questionnaire survey based in Norway (Bjørnenak 1997), difussion of BSC in Finnish organizations (Malmi 1997), Sweden (Ax & Bjørnenak 2005), and in New Zealand hospitals (Northcott & France 2005). Given such studies in the current body of literature, there is limited empirical evidence of how and why management accounting innovations get diffused in different organizational contexts.
Among the various management accounting innovations, BSC is a significant development that has altered the conventional wisdom about performance measurement and has generated interest among the academia and industry. Its core idea, the need to provide a balanced view of performance, is appealing, and subsequent to the ground-breaking article in 1992 by Kaplan and Norton, its advocates, the technique has been diffused across the world. BSC strives to remedy the inadequacies of current performance measurement systems by looking at a company's performance across four perspectives, namely, financial, customers, internal business processes, innovation and learning. It is premised on the view that no single measure can provide a clear performance target or focus attention on the critical areas of the business. What managers need is thus a balanced presentation of both financial and operational measures, as expressed through BSC (Kaplan & Norton 1992). Within this backdrop, this paper reports on a BSC diffusion story from a Sri Lankan financial institution, which we call Orient Bank for confidentiality reasons. We explore how and why BSC has been diffused in the particular context of this case study organization. The paper addresses the key research questions: (1) What are the various internal and external forces influencing the diffusion of BSC in Orient Bank? (2) How have such forces influenced diffusion? (3) Who were the key people connected with the diffusion and how did they play a role in the diffusion? The Sri Lankan financial services sector and our chosen site, Orient Bank, operate in a rather different context in terms of the competitive setting encountered and therefore differs from countries and contexts focused in prior research, making it particularly suitable for this empirical inquiry.
Our paper is expected to be a useful addition to the current body of management accounting knowledge in general and BSC specifically and to the diffusion of management accounting tools by providing an in-depth inquiry into diffusion of BSC in the context of a Sri Lankan financial institution. This is important as most prior diffusion studies have been in the form of surveys (Bjørnenak 1997, Joshi 2001, Lapsley & Wright 2004) and broadly cover a particular industry or a country setting (Ax & Bjørnenak 2005, Malmi 1997. This paper is also different from prior diffusion studies premised in Sri Lanka (see Fonseka 2001, 2002, Fonseka 2012, Wickramasinghe, Gooneratne & Jayakody 2008. Fonseka (2001Fonseka ( , 2002 attempted to design and apply the BSC framework to 14 tea export firms, and six rubber goods manufacturing and exporting firms in Sri Lanka. These studies revealed certain imbalances. Despite these firms remainingfinancially profitable, they scored low on the other BSC perspectives, particularly the learning and growth perspective. Ironically, none of these companies had a BSC in place. In the recent study by Fonseka (2012) the focus was on the dissemination of management accounting in Sri Lanka since it became a British colony, while Wickramasinghe et al. (2008)

inquired into the 'rise' and 'fall' of a BSC project in a Sri
Lankan firm, where the 'rise' was linked to the broader knowledge diffusion programme in Sri Lanka. Our paper is also important from a theoretical point of view. It offers a dynamic perspective of the diffusion of management accounting innovations through a theoretical framework which brings together the supply-side as well as the demand-side forces into a single innovation diffusion model. Future researchers may thus be inspired to identify the relevance of this model beyond BSC and beyond Sri Lanka. The findings of this study also contribute to management accounting practice by providing learning points to practising managers in Sri Lankan firms as well as in other parts of the world on implementing management accounting tools such as BSC in organizations.

Literature Review: Innovation and Diffusion of Innovations
Innovation is the introduction of ideas, practices, or objects perceived as new by an individual or social system (Rogers 1995, Bjørnenak 1997. Accordingly, old ideas applied to new settings or reintroduced into the same setting at a later point in time may be treated as an innovation. This means that an innovation may have existed earlier, in a different form, or in a different area. From such a perspective, BSC can be seen as an innovation, despite the earlier French version 'Tableau de Bord' (Epstein & Manzoni 1997). Diffusion is the process by which an innovation/idea spreads through a social system through certain channels (Rogers 1995, Webster 1971, and diffusion theory explains how and why (or why not) some agents adopt new ideas or phenomena (Bjørnenak 1997). What makes diffusion different from spreading other types of messages is the 'newness' of the idea. Diffusion is said to occur when an innovative technique has been adopted by an organization (Lapsley & Wright 2004).
Traditionally, most diffusion literature has emphasized the demand-side of the process, i.e. an adopter perspective (Ax & Bjørnenak 2007), which is based on an efficient choice criterion. Seen in this light, a management tool is adopted to help an organization to attain its goals, and the most influential factor in the demand-side is the nature of the phenomenon being diffused. In the case of BSC diffusion, limitations of existing (traditional) performance measurement systems in evaluating business performance, given their partiality towards financial indicators, internal focus and backward looking nature (Johnson & Kaplan 1987, Kaplan & Norton 1992 are important. This is more so in the modern business environment amid advances in technology, changes in business practices, stiff global competition and rising customer demand which call for performance measurements beyond financial numbers (Kaplan & Norton 1992, Pandey 2005, Kennerly & Neely 2003. Many organizations are thus spending considerable time and resources on implementing improved management accounting systems such as the BSC, which strives to address the limitations of traditional management systems. The technical specifications of BSC such as the inclusion of financial and non-financial perspectives and strategy maps are vital from a demand-side perspective. From a demand-side perspective of diffusion the interest and support of the top management (role of leaders) is also central. They have the controlling power in the organization, and this would create a demand for a particular practice or tool within the organization. Further, the role of facilitators (change agents) is vital in coordinating, educating and popularizing a practice, as well as in managing the resistance (Bjørnenak1997), which may stem from fear of the unknown or theoretical objections to the technique. In addition, availability of resources such as money, materials and human resources and the presence of other innovative tools would encourage an organization to implement such tools further (Ax & Bjørnenak 2005, Bjørnenak 1997, Bjørnenak & Olson 1999, Jones &Dugdale 2002. Barriers to change are also significant from the demand side perspective (Ax & Bjørnenak 2007). This includes physical barriers such as lack of resources as well as cultural / linguistic barriers such as language, profession and institutional factors.
Although from a demand-side perspective, the information field is viewed as a passive factor in the diffusion process, supply-side forces are also important, and have stimulated studies on the diffusion of management accounting techniques (Abrahamson 1991, Ax & Bjørnenak 2005, Bjørnenak1997, Bjørnenak & Olson1999, Jones & Dugdale 2002, Malmi1997, Major & Hopper 2005. According to the supply-side perspective, management tools do not get diffused only by popular demand but instead by supply-side elements such as the role of consultants, academic and professional institutions, books, articles, meetings, conferences and workshops.

Figure 1: Innovation Diffusion Framework
Source: Review of Literature Consultants as propagators of management tools package and market them capitalizing on their proficiency, and actively push their spread (Abrahamson 1991). In diffusing BSC too consultants have played a significant role by highlighting the failures of traditional management accounting systems, and portraying a one-sided (positive) view of BSC, making an invitation to buy this management theory showing how failures of traditional management accounting systems are addressed through it. Consultants present such persuasive ideas and engage in purposeful action such as write-ups, feature articles, public lectures and executive seminars. They convey their message using non-theoretical terminology and suggest 'a cure for organizational despair', which is however aligned with their personal interests. Business schools, professional bodies and universities also create awareness of such tools for reasons of increasing profitability, status, legitimacy and public image. Seen in this light, BSC has turned out to be a management tool that has gained the spotlight in an array of text books, academic and professional articles, conferences, research monographs, magazines and student handbooks. This reinforces the value of communication links as a means of conveying new management ideas to potential adopters (Ax & Bjørnenak 2005. BSC practices are also examined in relation to academic and professional qualifications. Using another management accounting tool, ABC as an example, researchers note that magazines like 'Management Accounting' include a number of advertisements for ABC software and

Consultants
Meetings, conferences, workshops, training programmes Books, articles

Demand-side forces
Top management support Role of facilitator Nature of the phenomenon and availability of similar tools

Resource availability
Level of barriers to change and level of resistance ABC courses (Bjørnenak 1997, Jones & Dugdale 2002 and that the supply-side of the diffusion is relatively easy to observe. In similar vein, Clarke, Hill and Stevens (1999) explain the low adoption rates of ABC in Ireland as being due to the absence of compulsory further professional education and lack of practitioner journals on management accounting, as well as the absence of executive MBA programme.
In keeping with the above literature review, the theoretical framework of this paper brings together the supply-side and the demand-side forces into a single innovation diffusion mode and shows how suppliers and users of innovations play an active role in the diffusion (see Figure 1). This is a more contemporary (dynamic) perspective of the diffusion of management accounting tools as traditionally, management accounting tools have been viewed as static objects, with fixed and definite components which remain unchanged as they diffuse. The traditional perspective can be challenged as overly simplistic, and it is more realistic to adopt this dynamic perspective into the process of diffusion, as done in this study. Accordingly, diffusion of management tools such as BSC is seen as a flexible, not a fixed, technical solution, and both suppliers and users become active groups in the diffusion (Ax & Bjørnenak 2007).
Seen from such a dynamic perspective, management tools do not consist of clear-cut recipes but are characterized by a certain degree of conceptual ambiguity, which contributes to their interpretive viability opening up space for different interpretations and uses. This makes it possible for suppliers and users to recognize their own versions of the tools by selecting those elements that appeal to them and localizing as suitable to the circumstances. Bringing together various supply and demand forces in this manner enables a better understanding of the diffusion of a management tool.

Research Context and Method
This case study is based on Orient Bank, which is one of the largest private sector commercial banks among the licensed commercial banks in Sri Lanka. It was incorporated in the 1980s, and currently operates with over 200 branches and over 200 ATMs island wide (Orient Bank Annual Report 2011, 2012). It has a staff of more than 3,500 employees and an asset base of over Rs. 300 billion. The bank's core areas of operations include personal, corporate and development banking, trade services, treasury operations, credit and debit cards and e-banking activities. It focuses on five strategic goals in achieving its performance-related targets, namely, achieve the largest branch expansion driving the banking sector, sustain credit and portfolio quality, promote technology-driven banking, focus on key customer groups and facilitate business growth through innovative products and pioneering services (Orient Bank Annual Report 2011, 2012. This research deploys the qualitative methodology (Silverman 2000) and case study approach (Yin 2009) in exploring the key demand and supply forces behind the diffusion of BSC in Orient Bank. A case study approach is appropriate when: (a) the focus of the study is to answer 'how' and 'why' questions; (b) the behavior of those involved in the study cannot be manipulated; (c) contextual conditions are believed to be relevant to the phenomenon under study; or (d) the boundaries are not clear between the phenomenon and context (Yin 2009).
This study strives to explore 'how' and 'why' BSC has been diffused in a leading private sector financial institution in Sri Lanka, by unearthing the internal and external factors which influenced the diffusion of BSC and the role of key people connected to the diffusion. Such an inquiry warrants the need to deeply analyze the particular organizational context through building face-to-face interactions with key informants. Seen in this light, the qualitative casestudy approach is the most suitable option for the current study.
In this study the data was collected through multiple methods such as interviews and analysis of internal and external documents. One-to-one in-depth interviews based on an interview guide were conducted with ten managers to understand how and why the diffusion of BSC took shape in the bank. Interviewees mainly represent the finance and planning area as they were the key informants relating to BSC in the bank. Interviews were also conducted with practice level managers representing marketing, credit and branch operations to understand how the BSC message reached the practice level (see Table 1 for the list of interviewees).
Interviews were also carried out with two Sri Lankan personalities 1 (experts) in the 'business of BSC' to further understand the diffusion of the technique.

Interviewee
Designation 1 Senior Manager Finance 2 Head of Planning (Strategic Planner) 3 Manager Planning 4 Planning Officer 5 Head of Credit Control 6 Senior Marketing Officer 7 Branch Manager 8 Branch Manager 9 Branch Manager 10 Branch Manager To supplement interview data internal and external documents as well as the website of the bank were reviewed to ascertain whether they corroborated each other. Use of data triangulation in this manner (Yin 2009), strengthens the study and increase thecredibility of findings.
The collected data was analyzed in light of the theoretical underpinning of innovation diffusion model present earlier, focusing on the demand-side and supply-side forces. Accordingly in the next section, findings of this study have been presented elaborating how and why the diffusion of the BSC took shape at Orient Bank.

Findings: Demand-side Forces in Diffusion of the BSC
As elaborated above, the demand-side of diffusion represents forces that lead to the spread and popularization of a management tool due to the nature of the phenomenon being diffused.
In case of BSC diffusion in Bank Orient, limitations of existing performance measurement systems, is noteworthy, along with support extended towards it by the top management of the organization, supportive role of the facilitator, availability of similar tools and necessary resources as well as the low prevalence of barriers and resistance towards new practices.
These are discussed in light of case study data next.

Nature of Top Management Support
Continuous top management support and positive mindset is essential to successfully promote and popularize new management tools among others. As one BSC expert interviewed added, "to achieve success with the BSC commitment from the top management of the organization is needed, they have to be convinced about the BSC, you should believe that the company as a whole is going to benefit, by implementing it". While another expert noted, "full Accordingly it is evident that the presence of a few (influential) people at the right places, who believe strongly in the value of new techniques (such as BSC), could make a crucial difference in terms of the implementation.

Role of Facilitator
The BSC of Bank Orient was facilitated by the strategic planning department, and the interviewees noted the valuable contribution of the strategic planner in this regard. One manager shared his view stating that "…the main role in strategic planning was done by Mr. X and he did some great work with his planning team to see that this BSC is in a way that suits our bank. we have designed in the BSC… I was the one who conceptualized it, and then implemented it, we did not just do it, we did it in a way that is suitable to our bank, the indicators were really what was important to us, for our bank… Once it was implemented every quarter we conducted competitions like to select best branch…At that time we practiced mystery shopper concept… customer/ employee satisfaction surveys were done…We did SWOT, industry and trend analysis. We used to conduct a strategic planning session with corporate management and the board of directors…We at strategic planning provided whatever the support…So I can tell you lot of things we did to smoothly run the BSC.
The above interview data shows how the strategic planner and his team were committed towards the BSC, playing an invaluable facilitative role in diffusing the BSC message in the bank as a whole, and reaching the practice level managers at branches and functional areas.

Availability of Similar Tools and Resources
Orient Bank had implemented a number of new management practices, such as six-sigma, five 'S', quality circles, continuous improvement in order to establish and maintain its operational success in the corporate world.BSC was another such new tool which the bank took on board.
The strategic planner noted, "We are the first mover in technological advancements in the banking sector".
In order to achieve success in any project, it is essential to have adequate resources. Financial and other resources have been allocated for the BSC in Bank Orient as required. The strategic planner said,

When we spend money for this kind of process it is an investment because we
can enjoy the benefits in the future. Our management understood this and they were encouraged to invest in implementing such a valuable tool like the BSC …Our expenses were basically the consultant fee… Availability of human resources was also evident in this diffusion process, by the dedication of the staff of Orient Bank. From top to bottom the adopters got fullest support and commitment to popularize it. . A manager who was attached to the planning team stated: Actually we got very good support from the top management. Not only that all the staff were encouraged to perform their tasks. We had a number of trained staff with us who are loyal to the bank. Such an implementation process without contribution of our staff would not be a reality… Another valuable resource is time. To implement a new tool successfully, it is required to have a sufficient time frame to complete the process. If not, the staff might get confused as to what to do with the new tool. In the case of Orient Bank, it has taken nearly two years for the planning and implementation process. It was a gradual process. The strategic planner stated in his words, "...for several years we were much focused on the BSC, we were actually continuously developing it…."Thus allocating sufficient resources in terms of money, manpower and time contributed towards the successful diffusion of the BSC in the bank.

Barriers to Change and Level of Resistance
Resistance to change with regard to a new idea is a common occurrence in the corporate world. The BSC was a new concept to everyone in Orient Bank, and there was a certain level of resistance from the branch level. One branch manager explained: This BSC was a new thing to our bank. Sometimes people are reluctant to change, and they think that it is a way of comparing their work with others. So they got scared...
With the implementation of the BSC, branch level performance was assessed as per the BSC perspectives and measures, and branch managers were expected to make a presentation on their performance. This practice was open to criticism. One manager emphasized that the employees were reluctant as they had some fears of low performance which they thought will affect their career negatively. The following quote reflects this.
...Some branch managers resisted the BSC, they thought they cannot present well. Every branch manager is not capable of doing presentations well.
Sometimes it might be the first presentation in their career. They had a fear of their weaknesses getting highlighted. Sometimes they were busy with their day-to-day functions and couldn't manage the time because they spent a lot of time getting ready for the BSC presentations...

Another branch manager expressed a similar idea. " … We had to do BSC presentations to
the corporate management each month explaining our progress. But as I know most of the branch managers considered it as a burden and they disliked it because it was an extra work.
They thought that it highlighted their weaknesses and that this will be a problem in getting promotions as well…" As the above data suggests due to limitations in skills and time constraints there was resistance to the BSC at the branch level. However, more importantly and interestingly, according to the data gathered the resistance was controlled with the high support of the top management and the facilitation by the strategic planning team. One senior manager added, "...management wanted to implement and use the BSC, they made us understand and feel about the BSC concept. The whole process was directly monitored by the top management. No bluffing, no hanky-panky, they were very strict on this…whether we can or cannot we had to do it… But I have to say strategic planning people really helped us, if we had a problem they were there so that was big thing".
This shows that due to strict enforcement and high monitoring of the BSC by the top management and the facilitation by the strategic planning team, the bank was able to minimize and control the resistance which emerged at the branch level. A branch manager noted: …Resistance to the BSC was not considered as a big problem by the management or the planning department. Even if people resisted or did not like it they had to do their part somehow. As I know the management was well aware of this resistance, and they knew that even if the people don't like they will do the things as it was coming from the top management. So resistance was not a big problem to implement and spread the BSC in the bank… The evidence from Bank Orient shows that high top management support and facilitation by strategic planning enabled it to effectively manage any resistance, and that this resistance was therefore not powerful enough to prevent the functioning of the BSC. Most of all, this meant that the overall resistance to change was insignificant at the organizational level, and this contributed towards its diffusion.

Findings: Supply-side Forces in the Diffusion of BSC
To supplement demand-side forces, supply-side forces which assist in spreading and popularizing an innovation also need to be considered. According to field study evidence gathered from Orient Bank, the role played by consultants, books, articles, meetings, conferences, workshops, professional and academic institutions became active propagators and materials representing the supply-side of BSC diffusion in Orient Bank.

Consultants
In the diffusion of a management technique, consultants play an active role as propagators.
In the case of the diffusion of BSC in Orient Bank, the management got the guidance from well-known foreign consultant. The strategic planner explained, "We got a BSC consultant who was also a person who had lot of experience in banking. He was not an academic. He was a British banker, who had his entire career in banking … life-time of experience with him on banking…" One branch manager described the exposure he got from the consultant, A foreign consultant who had lot of experience on practicing this tool conducted few sessions for us. It was really interesting for us because we could know what is it, what advantages we can achieve, how we can improve our performance, how we set the targets, what are the fruitful ways of achieving those targets etc. We got a good chance to discuss our practical problems with him regarding achieving profit targets etc. Actually it was a valuable opportunity for us to share our experience and gather knowledge from a well experienced expert like him. He was a banker so that also helped us because the language was similar… As the above quotes suggest it is evident that the consultant played an important role in getting people's attraction to the new tool. Another branch manager shared his experience about the foreign consultant, Actually we had very few sessions with him. As a facilitator he conducted few meetings….. We can't apply certain western tools directly to our culture. If we implemented the thing as it is, like the way the consultant explained we may get into difficulties. But, somehow our planning department did that according to a way that worked for our bank that was actually important...
Thus the above evidence show that the foreign consultant played an active role in initially diffusing the BSC in the bank, while the efforts of the strategic planner and his team helped in localizing the western knowledge prescribed by the consultant.

Meetings, Conferences, Workshops/Training, Books and Articles
Meetings and conferences are an assembly of people gathered for a particular purpose or formal discussion. Workshop also serves a similar purpose. Training is a process of acquiring knowledge, skills and competencies through teaching practices related to a profession or job (Abrahamson 1991, Ax & Bjørnenak 2005, Bjørnenak 1997, Bjørnenak & Olson 1999.
On a rather general note, one BSC expert interviewed noted how workshops and seminars are important in diffusing innovative tools. He added: "The concept of BSC is very much spoken among the business community in Sri Lanka. We love buzz words. BSC is a nice terminology, and if you organize a workshop or a seminar on such modern techniques, many people may come and listen". Similarly, in the diffusion process of BSC in Orient Bank, there were many such meetings, workshops and training sessions. The strategic planner noted, "we had one to one discussions with department heads, we had training programs for different levels of managers at the branches and head office, and we even personally visited almost all branches to create awareness and address their problems…"A senior manager shared his experiences on workshops stating, "...there was a location for each team to work. On average six to seven members were in each BSC team. Each task was delegated to team members in a proper manner…" Another manager explained about the discussions in those meeting sessions.
…We were told about the importance of BSC, how to understand the KPIs, how translate the strategy into the objectives, how performance indicators are being achieved, all these things … Other managers interviewed expressed similar views. A branch manager emphasized the importance of those training sessions and meetings, stating that "we got a good chance to discuss our practical issues regarding achieving profit targets, etc. by participating in those BSC sessions".
Some of the interviewees got to know about this BSC concept for the very first time through those training sessions. Several managers made comments similar to the following, "I got to know about the BSC actually through our bank. Before it was implemented here I had no idea about this concept…".However, the strategic planner and the MD, who were the main contributors to the diffusion of the project in the bank, had a thorough knowledge on BSC before it was implemented. As the strategic planner explained he was the person who encouraged the MD to implement the BSC.
Actually I was the one who participated in a workshop regarding BSC. Then I came and told CEO there is a thing called BSC, this is very important….
The CEO had very good understanding on importance of BSC, he realized the value of it to our bank and he was so keen to implement it here….

Academic and Professional Institutions
In So in all these courses I had learnt about the BSC and I had the basic knowledge which I was able to further develop by reading various BSC materials…".The knowledge and insights gathered by different managers of Bank Orient through their academic and professional programs therefore facilitated the smooth functioning of the BSC in the bank.

Discussion and Conclusion
Drawing field study evidence from a financial institution located in Sri Lanka, Bank Orient, this paper explores how and why the BSC has been diffused in the particular context of our case study firm. This paper addresses the key research questions; (1)  perspective is that both suppliers and users are active groups in the diffusion who shape the management techniques suited to the purpose and circumstances (Ax & Bjørnenak 2007).
Keeping with this dynamic perspective, our evidence shows how learning from the wisdom conveyed at BSC workshops and by the foreign consultant, the strategic planner played a significant role in localizing the BSC as suited the particular context of Orient Bank.
Although there is a small flood of research on the merits of new management accounting tools and their application in a particular industry or country setting (Alcouffe et al. 2008, Ax & Bjørnenak 2005, Bjørnenak 1997, Joshi 2001, Malmi 1997, Northcott & France 2005 to name afew), presently there is limited understanding on how and why such tools get diffused in different organizational contexts. Therefore our paper, through an in-depth inquiry on diffusion of the BSC in the context of a Sri Lankan financial institution, makes a useful contribution to management accounting knowledge more broadly, as well as to BSC, and diffusion of management accounting tools, more specifically. This paper is also important from a theoretical point of view. It offers a dynamic perspective on the diffusion of management accounting tools, through a theoretical framework which brings together the supply-side as well as the demand-side forces into a single innovation diffusion model.
The study also provides valuable insights to practicing managers on the implementation and diffusion of management accounting techniques such as the BSC in organizations. This research also makes way for future research. Future researchers are encouraged to move beyond this study and assess the applicability of the innovation diffusion framework offered in this study for other organizations in different industries and countries for BSC, as well as other management tools. Since this study has been carried out in one organization as a single case-study, future researchers can also explore the diffusion of new techniques using multiple case study approach. This would enable comparison of the findings.

Postscript
The BSC episode narrated in this paper shows how the diffusion of a BSC has taken place, amid the support of the top management and the facilitation of a foreign consultant and a strategic planner in an organization which is receptive towards change. Our research site, Orient Bank started off the BSC in 2004, which one could claim to be the golden era of the BSC in Sri Lanka, with broader diffusion of the tool intensely visible in the Sri Lankan corporate arena, and this was a time when the BSC was considered as a 'popular' management accounting innovation. Seeing in this light, one would claim that this firm has followed a 'technically correct' path in diffusing a contemporary management accounting tool (BSC), and would expect it to get sustained in the organization as a management practice. Although the bank continued with the BSC through gradual improvements for around five years, across time priorities, key decision makers and therefore the dedication towards the BSC changed, and BSC's value diminished. As at now there is no 'formal' BSC in practice, although some nonfinancial indicators are measured and managed. Similarly, in an earlier study Wickramasinghe et al. (2008) depicted how the BSC although embraced by the management at one point, later was discarded in a medium sized family entity in Sri Lanka. Our BSC story thus shows that despite a 'successful' diffusion by following a 'proper' path, across time management tools such as BSC could end up in different fates, for in our case study firm, BSC had turned out to be a 'short-term guest' rather than a 'long term resident' (Brown & McDonnell 1995).