Abstract
This study aimed to identify the difference between the Jordanian banks in their use and application of the Balanced Scorecard measures represented by its four dimensions, and the effect of the use and application of these dimensions on measuring the performance of the these banks, and the effect of using these measures on the real performance of these banks measured by the return on assets (ROA) and the return on equity (ROE). A questionnaire was designed for this purpose. The results indicated that the Jordanian banks used a set of financial and non-financial performance measures which are similar and consistent with the Balanced Scorecard dimensions. The most used dimensions were the financial dimensions, followed by the internal operations dimensions, then the learning and growth dimensions, and finally the dimensions related to receipt of the service. The results shows statistically significant differences in the use of every performance measurement, and the results indicated also that the banks which highly used the previous mentioned measures achieved a higher return on assets and a higher return on equity compared to other banks.
Highlights
This study aims to identify whether there are differences between Jordanian banks in terms of the application of performance measures contained in the Balanced Scorecard dimensions and the impact of this application on the financial performance, taking into consideration that there are no study, data or disclosures which refer to the use and application of the integrated concept of Balanced Scorecard system by the Jordanian banks, and this study will test whether there are differences in the use of Jordanian banks of performance metrics similar to the performance measures contained in the Balanced Scorecard
The study examined the relationship between different business strategies and the results showed that the business strategy and competitive market influence the use of the Balanced Scorecard in the Jordanian commercial banks and insurance companies, and the study recommended that other researchers can do more research to test the assumptions and the benefits of using the Balanced Scorecard. (Dergham and Abofedah, 2009) attempted to identify the impact of applying the balanced performance model through its four dimensions in enhancing the financial performance of the strategic Palestinian national banks working in the Gaza Strip
One way ANOVA has been used and depending on F value (0.567) and its significance (0.570) which is greater than the significant level (5%), we accept the null hypothesis which states: there are no significant differences in JCBs performance as measured by return on equity(ROA) due to the implementation of the Balanced Scorecard dimensions
Summary
The transition of companies from the industrial competition era to the informatics competition era led to the need of owning new capabilities to ensure success in the intense competitive environment that surround most of the companies, and it has become imperative for companies to find and use new managerial methods and tools for measuring the performance in order to continue their progress and growth and to maintain their competitive advantages, and not just relying on the traditional performance measurement systems, which are unable to provide the true picture of the company in order to achieve the required development and growth (Kaplan and Atkinson, 1997, p.367). Where the percentage of those who answered "strongly agree" and "agree" questions of the variables were as follows: first variable (financial dimension) accounted for 85.5 %, second variable (service recipients dimension) accounted for 60.33 %, third variable (internal processes dimension) accounted for 66.2%, and the last variable (learning and growth dimension) accounted for 60.3 %.we can conclude from the value of the weighted average for each variable the level of application of each variable of Balanced Scorecard by the Jordanian banks. The concept of the recent recipient of the service comes last with an average ratio of 3.73 or application of 74.6 % These values reflected the existence of a clear conceptual framework in general for the Jordanian banks which is significantly associated with the four dimensions of the Balanced Scorecard, and it is clear that JCBs apply a large level of this method which accounted to 77.80%. It's noted that there are a differences between the degrees of implementation for all dimensions
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