Abstract
This study examines the efficacy of balance scorecard (BSC) on the performance of banks in Nigeria as one of the most topical issues in the banking sector. The study was motivated by the imperfections of traditional performance measurement system which is inadequate as it is limited to financial analysis and does not provide for an integrated analysis of performance that captures the non-financial variables, such as customer, learning and growth and internal business process. The study was based on expost facto research design and made use of historical data of five selected banks spanning a period of eleven years (2007-2017). It was hypothesized that customer internal business process, learning and growth and financial perspectives have no significant effect on the performance of banks in Nigeria. The result indicates that customer perspective and internal business process perspective have significant effect on performance of banks in Nigeria, while financial perspective and learning and growth perspective have no significant effect on banks performance in Nigeria. It was recommended that banks in Nigeria should adopt the BSC approach to measure and manage their performance in view of its capacity to provide a comprehensive information on bank performance evaluation. It was further suggested that banks should be more innovative on customer and internal business process aspect of their operations in order to maximize performance. It is also stressed that banks should accord learning and growth components of their operations a significant attention. Keywords: Balanced Scorecard, Bank Performance and Measurement , Nigeria DOI : 10.7176/EJBM/11-23-05 Publication date : August 31 st 2019
Highlights
Organizations are operating in a very competitive environment
3.0 Methodology This study adopted Ex post facto research design. This design was considered appropriate as it involved using historical data covering 11-year period (2007-2017) to investigate the effect of independent variable, balance scorecard (BSC) on dependent variable, banks’ performance, proxied by Return on Equity (ROE)
4.0 Discussion of Findings The findings of this study indicate that two independent variables namely customer perspective and internal business process perspective has significant effect and influence on the dependent variable, banks’ performance in Nigeria
Summary
Organizations are operating in a very competitive environment. To develop and sustain competitive advantage, business organizations must determine their performance measurement system. The organization is in a position to assess the direction the business is going. A performance measurement system enables an organization to plan, measure and control its performance according to predefined strategy (Okwo and Marire, 2012). It is generally defined as regular measurement of outcomes and results, which generates reliable data on the effectiveness and efficiency of programmes and strategy (Collins and Greg, 2016)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
