How Effective is the Balanced Scorecard in Business Performance Evaluation of Hospitality Industry in Nigeria?

Abstract

Motivated by the need to have a multi-dimensional picture of performance of the hospitality industry in Nigeria, the Balanced Scorecard was applied in evaluating the business performance of the industry. The study adopted a survey research design with copies of questionnaire developed and administered on service personnel, unit heads, managers and guests in the surveyed hotels. Data collected from the study were coded for analysis. Results of test of hypotheses conducted with multiple regression, indicated significant relationships of all four perspectives of the balanced scorecard. Findings suggest that customer perspective (Beta= 0.131, t= 3.4474, P< 0.05) contributes most to the business performance of hospitality industry in Nigeria; followed by internal business process perspective (Beta =0.096, t= 2,6667, P< 0.05); then financial perspective(Beta = 0.294, t= 2.3150, P< 0.05); then leaning and growth perspective(Beta = 0.154, t= 2.0649, P<0.05). The analysis reported an adjusted R 2 of 0.643. The F value (19.152) was significant at 0.05 level with its P value = 0.000. It was recommended that hospitality firms in Nigeria see the need to balance their ‘unbalanced’ performance presentation by adopting the BSC as their performance scorecard; that in view of the significant contributions of the non-financial perspectives, customer, internal business process ; and learning and growth to hospitality business performance in Nigeria, there was need for firms in the industry to prioritize related issues in operational management; that hospitality firms in the country strategize to ensure all stakeholders in the business are properly served in order to improve upon its financial performance.