Investigate the distinctive link between a balanced scorecard and organizational performance in IT and non-IT sectors

Abstract

PurposeThe purpose of this research is to examine how the implementation of a balanced scorecard (BSC) affects business outcomes in both information technology (IT) and non-IT sectors.Design/methodology/approachPartial least squares structural equation modeling (PLS-SEM) was used to test the hypothesis. A random sample was used to collect 170 responses from the IT companies and 166 from non-IT companies by using the questionnaire method. The questionnaire was distributed to the top- and middle-level managers in Bangalore city, and we used SmartPLS software to explore the relationship between our research constructs.FindingsThe results of this study indicate that a BSC has a significant and positive impact on organizational performance in IT and non-IT sectors. The main distinction in this study is that all BSC perspectives [learning and growth perspective, internal business process (IBP) perspective, customer perspective (CP) and financial perspective (FP)] have a significant, direct and indirect impact on IT companies. On the other hand, solely three BSC perspectives (IBP perspective, CP and FP) have a significant impact on non-IT companies, while learning and growth perspective has an insignificant impact on the FP.Originality/valueThis study provides a critical theoretical and practical contribution of a BSC on business performance in IT and non-IT industries.