Measuring and managing organizational performance based on organizational capitals, service quality and BSC performance outcomes

Abstract

Purpose The purpose of this paper is to develop and test empirically a new holistic performance measurement model that integrates the best of current performance measurement frameworks and methodologies and builds upon the resource-based view to strategic management. Design/methodology/approach A survey collected responses from 379 top-, middle- and supervisory-level managers from 3 telecommunications service providers in Egypt. The hypothesized direct relationships were tested through multiple linear regression (using SPSS software), and the mediating effect was tested using the structural equation modeling technique (using AMOS software). Findings The results reveal that the proposed model is a reliable and valid instrument for measuring and managing holistic organizational performance. The results also reveal that Egyptian telecommunications companies have primarily emphasized the use of structural and relational capital to enhance their service quality (SQ) and performance outcomes (POs). Moreover, SQ was found to significantly and partially mediate the effect of organizational capitals (OCs) on POs. Research limitations/implications The proposed model is a novel model that needs further investigation using various research designs and multiple research methods to assure its reliability and validity as a holistic performance measurement system. Practical implications The Egyptian telecommunications companies should efficiently manage and leverage all four components of OCs, especially the components of intellectual capital to improve their SQ and consequently enhance their POs. Originality/value To the best of the authors’ knowledge, this is the first research to study the relationships among OCs, SQ and POs, merge them in an integrated performance measurement model and test this model empirically in the Egyptian telecommunications setting.