Investigating causal linkages in the balanced scorecard: an Indian perspective

2018 ◽  
Vol 36 (1) ◽  
pp. 184-207 ◽  
Author(s):  
Adil Zahoor ◽  
Musadiq Amin Sahaf
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Equation Modeling ◽  
Sequential Dependency ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Customer Perspective ◽  
Employee Learning ◽  
The Relationship

Purpose Kaplan and Norton (1996b) claimed that there exists a sequential dependency between the four balanced scorecard perspectives (learning and growth, internal business processes, customer, and financial). Although theoretically supported by various researchers, the said claim has, somehow, attracted limited empirical attention. Therefore, the purpose of this paper is to investigate whether empirical evidence will support the theoretically grounded interrelations between the four balanced scorecard perspectives. Design/methodology/approach For this study, a total of 13 key performance indicators were identified and then clustered into the four perspectives of balanced scorecard, followed by the development of causal linkages. Data related to these indicators were collected from 1,001 employees and 985 customers of two Indian retail banks and then tested for hypothesized relationships using structural equation modeling. All the constructs were measured using scales developed in previous research works. Findings The results indicate that employee learning and growth positively influence the internal business processes which in turn influence the customer perspective. Finally, the customer perspective has a significant positive influence on the financial performance. Further, it was also revealed that internal business processes mediate the relationship between employee learning and growth and customer perspective. Also, the relationship between internal business processes and financial performance is significantly mediated by customer perspective. Originality/value Majority of the previous research on causal linkages of balanced scorecard has been theoretical in nature. Whatever little empirical research is available in this regard is limited to developed nations. In a developing nation like India, these linkages have seldom been examined in the past. The study has been conducted to plug this gap in the literature and, resultantly, provide further insights into the interrelations of the balanced scorecard perspectives.

TQM and organizational performance using the balanced scorecard approach

2017 ◽  
Vol 66 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Golnaz Nooriparto ◽  
Hamid Reza Rasekh
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
Structural Equation ◽  
Strong Association ◽  
Measurement Model ◽  
Equation Modeling ◽  
Total Quality ◽  
Content Type ◽  
The Balanced Scorecard ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between the implementation of total quality management (TQM) and organizational performance, using the balanced scorecard (BSC) approach. Design/methodology/approach In order to investigate the relationship between TQM and BSC, a questionnaire was developed and distributed to 30 largest pharmaceutical distribution companies in Iran. Structural equation modeling was used to evaluate the measurement model and to test the research hypotheses using the data from 933 completed questionnaires. Findings The results supported the research model and revealed that TQM implementation can positively and significantly influence the BSC and its four perspectives. Practical implications Considering the strong association between TQM and all four perspectives of organizational performance (BSC), managers should strongly leverage the implementation of TQM practices in order to reach their strategic objectives. Originality/value This study is the first empirical study conducted on the association of TQM and BSC in the pharmaceutical industry. The findings of this study provide strong evidence supporting the implementation of TQM in the pharmaceutical context.

scholarly journals Linking internal marketing orientation to balanced scorecard outcomes in small businesses: the case of travel agencies

2017 ◽  
Vol 11 (3) ◽  
pp. 297-308 ◽  
Author(s):  
Javad Khazaei Pool ◽  
Masood Khodadadi ◽  
Ezat Amirbakzadeh Kalati
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Small Businesses ◽  
Internal Marketing ◽  
Equation Modeling ◽  
Content Type ◽  
Internal Process ◽  
Marketing Orientation ◽  
Process Learning ◽  
The Relationship

Purpose The purpose of this paper is to examine how internal marketing orientation affects balanced scorecard outcomes (financial performance, customer, internal process, learning and growth) in a small service businesses context. Design/methodology/approach Drawing from the small businesses, the relationship between internal marketing orientation and performance is hypothesized and tested. A structural equation modeling (SEM) test with maximum likelihood estimation was performed to test the relationship between the research variables. Findings The results obtained from the SEM analyzes revealed that internal marketing orientation positively impacts the levels of financial and non-financial performance. The results also indicate that non-financial performance measures (that is, customer, internal process, learning and growth) directly affect financial performance. Originality/value This study unpacks the mechanism between internal marketing orientation and balanced scorecard outcomes and contributes to the academic research of internal marketing orientation in the context of small businesses.

The impact of soft TQM on financial performance

2018 ◽  
Vol 35 (7) ◽  
pp. 1360-1379 ◽  
Author(s):  
Ahmad Musbah Albuhisi ◽  
Ayman Bahjat Abdallah
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Pharmaceutical Manufacturing ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Total Quality ◽  
Content Type ◽  
Customer Perspective ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to explore the effect of soft total quality management (TQM) on organizational performance in the Jordanian pharmaceutical manufacturing sector using the balanced scorecard (BSC) perspective. It also examines the indirect effect of soft TQM on financial performance through BSC non-financial perspectives. Design/methodology/approach The study is based on survey data collected from 197 employees in managerial and non-managerial positions working in Jordanian pharmaceutical manufacturing companies. Validity and reliability analyses were performed, and the study hypotheses were tested using structural equation modeling. Findings The results indicated that soft TQM positively affected all BSC perspectives. Customer perspective positively affected financial performance while innovation and learning perspective and internal business process perspective did not. In addition, only customer perspective significantly mediated the relationship between soft TQM and financial performance. Originality/value This is one of the first papers to examine the effect of soft TQM on organizational performance in terms of BSC perspective in the pharmaceutical sector. In addition, this paper is the first to examine the mediating effects of the BSC non-financial perspectives on the relationship between soft TQM and financial performance.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

Managerial innovative capabilities, competitive advantage and performance of healthcare sector during Covid-19 pandemic period

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Demetris Vrontis ◽  
Hani El Chaarani ◽  
Zouhour El Abiad ◽  
Sam El Nemar ◽  
Alissar Yassine Haddad
Keyword(s):  
Health Care ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Health Care Sector ◽  
Healthcare Sector ◽  
Equation Modeling ◽  
Content Type ◽  
Innovative Capabilities ◽  
Managerial Capabilities ◽  
The Relationship

Purpose The purpose of this paper is to reveal the impact of dynamic managerial innovative capabilities on the competitive advantage (CA), financial performance (FP) and non-financial performance (NFP) of the health-care sector during the very turbulent Covid-19 pandemic period. The focus is on human behavior and personnel interaction in the hospitals that receive Covid-19 cases. Design/methodology/approach Data for this research was collected from the medical sector in Lebanon. The authors approached 14 public hospitals and 60 private hospitals for the study and only 48 hospitals (total of 284 respondents) accepted to complete the survey and provide data using a structured questionnaire. Findings This study reveals the moderating impact of CA on the relationship between dynamic managerial innovative capabilities and the performance of the health-care sector. Based on 48 Lebanese health-care centers during the Covid-19 pandemic, the results of the structural equation modeling model indicate that dynamic managerial innovative practices positively impact on CA and NFP. The results also reveal that CA has a moderating effect on the relationship between dynamic managerial innovative practices and NFP. Practical implications This study does not reveal any direct or indirect relationship between managerial capabilities and FP during the pandemic. Originality/value As the world deals with the Covid-19 pandemic, the health-care sector needs new approaches and methods for confronting the constantly evolving and turbulent environment. This study examines how health-care leaders are dealing with these dynamic challenges and tests a three-dimensional SEM model of dynamic managerial capabilities (sensing, seizing and reconfiguration) that impact CA.

Socioemotional wealth and human resource policies: effects on family firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan David Peláez-León ◽  
Gregorio Sánchez-Marín
Keyword(s):  
High Risk ◽  
Financial Performance ◽  
Human Resource ◽  
Family Firms ◽  
Equation Modeling ◽  
Positive Contribution ◽  
Socioemotional Wealth ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThis study analyses whether human resource management (HRM), through the use of four sets of high-performance work policies (HPWPs) (i.e. selection, training, motivation and opportunity policies), mediates the relationship between socioemotional wealth (SEW)—defined as a unique set of nonfinancial family goals—and firm financial performance when family firms face a high-risk context.Design/methodology/approachHypotheses were statistically tested using a structural equation modeling (SEM) methodology with a cross-sectional sample of 196 medium-sized and private family firms in a high-risk context in Spain.FindingsThe results indicate that the relationship between SEW and financial performance in family firms is fully mediated by the use of HPWPs, especially by training and motivation HR policies. The importance given to preserving SEW influences the use of four sets of HPWPs when family firms show clear evidence of being confronted by a financial decline (i.e. a high-risk context). However, to improve their financial results to avoid the firm's failure and thus the loss of their SEW, only those HR policies that focus on training and motivation made a significant and positive contribution to the firm financial performance.Originality/valueThis study contributes to the literature on family firms and HRM by adopting an alternative theoretical framework to understand how the importance of nonfinancial family goals may affect employee structures and management policies, thereby improving financial performance in family firms.

scholarly journals Government institutional support, entrepreneurial orientation, strategic renewal, and firm performance in transitional China

2019 ◽  
Vol 25 (3) ◽  
pp. 433-456 ◽  
Author(s):  
Chengli Shu ◽  
Dirk De Clercq ◽  
Yunyue Zhou ◽  
Cuijuan Liu
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Entrepreneurial Orientation ◽  
Transition Economy ◽  
Institutional Support ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Renewal ◽  
Firm Financial Performance ◽  
The Relationship

PurposeThe purpose of this paper is to examine how entrepreneurial orientation (EO) and strategic renewal (as a critical dimension of corporate entrepreneurship) might transmit government institutional support and thereby enhance firm performance in a transition economy.Design/methodology/approachMulti-respondent data were collected from 230 Chinese-based firms. The hypotheses were tested with structural equation modeling, in combination with a bias-corrected bootstrap method, to assess the significance of the theorized direct and indirect relationships.FindingsGovernment institutional support enhances EO and strategic renewal individually, yet EO also fully mediates the relationship between government institutional support and strategic renewal. Moreover, strategic renewal fully mediates the relationship between EO and firm financial performance, and it partially mediates the relationship between EO and firm reputation.Originality/valueThis study contributes to entrepreneurship literature by testing an organization-level model of entrepreneurial phenomena in established firms that identifies EO and strategic renewal as two distinct mechanisms through which government institutional support in a transition economy can enhance organizational effectiveness, which entails the firm’s financial performance and reputation. In doing so, this study provides an extended understanding of how EO and strategic renewal might influence a firm’s financial and nonfinancial outcomes in different ways.

scholarly journals Impacts of dynamic managerial capability and international opportunity identification on firm performance

2019 ◽  
Vol 27 (4) ◽  
pp. 339-363 ◽  
Author(s):  
Md Imtiaz Mostafiz ◽  
Murali Sambasivan ◽  
See Kwong Goh
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Opportunity Identification ◽  
Developed Country ◽  
Content Type ◽  
The Relationship ◽  
Export Manufacturing

Purpose This paper aims to investigate the antecedents and outcomes of international opportunity identification (IOI) in export-manufacturing firms. The fundamental question addressed in this research is: How does dynamic managerial capability (DMC) of entrepreneurs contribute to IOI and success of the firms? Design/methodology/approach The research model was tested through structural equation modeling among the readymade garment manufacturing firms in the least developed country, Bangladesh. A survey was conducted with a random sampling approach and responses were collected from 390 firms. Findings The salient findings are: DMC has direct and indirect impacts through IOI on financial and non-financial performance; IOI mediates the relationship between managerial social capital and non-financial performance and between managerial cognition and non-financial performance; IOI has a negative relationship with the financial performance of the firms; and scope of accelerated internationalization positively moderates the relationship between IOI and financial performance of firms. Originality/value This paper notably shows that DMC of export-manufacturing entrepreneurs leads to the identification of the right kind of opportunities, which, in turn, generate better performance. It is advantageous for this type of firm to operate a business in multiple countries.

The impact of a learning organization on performance

2017 ◽  
Vol 41 (2) ◽  
pp. 177-193 ◽  
Author(s):  
Kyoungshin Kim ◽  
Karen E. Watkins ◽  
Zhenqiu (Laura) Lu
Keyword(s):  
Financial Performance ◽  
Organizational Performance ◽  
Human Resource Development ◽  
Human Resource ◽  
Learning Organization ◽  
Resource Development ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this study is to examine the relationships among a learning organization, knowledge and financial performance using the Dimensions of the Learning Organization Questionnaire and its abbreviated version. Design/methodology/approach This study used a secondary data set and performed second-order factor analysis and structural equation modeling for testing the proposed relationships. Findings The study found that a learning organization has a positive effect on knowledge performance; knowledge performance has a positive effect on financial performance; and knowledge performance fully mediates the relationship between a learning organization and financial performance. Research limitations/implications This study contributes to validating the current dimensionality of the theoretical framework of a learning organization proposed by Watkins and Marsick (1993, 1996) and offers a valid conceptual framework of the relationship among the learning culture and organizational performance dimensions. Practical implications This study re-stresses the significance of the learning and knowledge generated by the human resources of an organization and developed by human resource development practitioners. Originality/value This study is valuable to human resource development scholars and practitioners interested in improving and measuring organizational performance.

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