The Assessment of Internal Indicators on The Balanced Scorecard Measures of Sustainability

Abstract

Background: Performance evaluation has become an essential tool for managers in the banking sector, which is undergoing frequent and rapid changes. It allows banks to maintain a high level of returns and reach their targets while staying competitive. In this context, sustainable performance management has emerged as essential for the banking sector. Indeed, the sustainable management of performance, while increasing the efficiency and effectiveness of organizations, also ensures sustainable measurement based on balanced scorecard practices. Purpose: This study aims to examine the assessment of internal indicators on the balanced scorecard of sustainability in the banking system in North Cyprus, which is one of the sustainable performance evaluation methods. Moreover, it aims to evaluate and reveal the effects of innovation performance, organizational culture, intrapreneurship, and the efficiency and effectiveness of the accounting information system on overall business performance in terms of the performance scorecard to achieve sustainable balanced scorecard systems. Design/Methodology/Approach: This study (BSC), which focuses on the banking industry in North Cyprus, was motivated by the recent and limited usage of a balanced scorecard. The questionnaire was used to gather data from 350 employees and managers of 21 banks in North Cyprus. Analyses of the collected data were conducted using structural equation modeling (SEM, AMOS 25). Findings: The findings of the research established that organizational culture, intrapreneurship, and accounting information system effectiveness have positive effects on a balanced scorecard and its sub-dimensions. Innovation performance does not affect the balanced scorecard and its sub-dimensions. Originality/Value: In identifying the advantages and contributions in BSC introduction and implementation, the study contributes to the current state of knowledge, enabling organizations which intend to use this tool to adopt it and develop it. This study takes organizations’ culture, innovation and intrapreneurship performance, and development on accounting and information systems into consideration in relation to the implementation process of BSC.

An Empirical Framework for Assessing the Balanced Scorecard Impact on Sustainable Development in Healthcare Performance Measurement

“…The questionnaire consists of nineteen questions ( Table A1 ). The questionnaire items were developed based on previous research on balanced scorecard dimensions, digital transformation, accounting information systems, human resources strategic management, and sustainable development [ 7 , 9 , 31 , 42 , 106 , 107 ]. Two questions in the first part of the questionnaire contained demographic information.…”

“…The questionnaire includes general questions regarding the employees’ perceptions and does not include data that require an institutional review board and informed consent. The measurement scales were developed based on previous research [ 7 , 9 , 31 , 42 , 106 , 107 ]. DT, AIS, SHRM, FD, CD, IPD, LGD, and sustainable development are the model’s endogenous (latent) variables.…”

“…According to Frigo and Krumwiede [ 32 ], BSC can contribute to better strategic human resources management because it ensures the interconnection between personal and organizational objectives and assesses the effects on organizational performance. The organization can achieve long-term objectives by converting the vision and strategy into individual objectives and quantitative and qualitative indicators, generating an optimal framework for communicating the vision and strategy to all employees [ 5 , 9 , 33 ].…”

“…The use of digital technologies and innovations in healthcare organizations significantly impacts organizational performance [ 9 ] due to increasing accessibility, speed, transparency, innovativeness, and trust. The level of implementation of digital technologies defines the level of digital transformation (DT) of activities and significantly affects the decision-making process by increasing the speed of decision-making and reducing errors [ 42 , 43 ].…”

“…Within the BSC, the evaluation of organizational performance has four dimensions: the financial dimension (FD), the customer dimension (CD), the internal process dimension (IPD), and the learning and growth dimension (LGD) [ 7 ]. Later, various authors found that the BSC can be used not only as a performance evaluation method but also as a strategic management model [ 8 , 9 ].…”