Research Objectives 1. To identify whether the emphasis on learning and growth will contribute to effective internal business production process. 2. To examine whether the improved performance in internal business production process will meet the desired customers’ expectations and satisfactions. 3. To study whether the stress on the importance of customers’ satisfactions will eventually lead to the better financial performance of companies.
Overview of Balanced Scorecard The Balanced Scorecard (BSC) philosophy has spread rapidly throughout the worldwide business community (Shneiderman, 1999). Over the decades, hundreds of organizations have implemented the BSC concept in one-way or another. The Balanced Scorecard, although deficient in empirical testing of its benefits (Bourguignon et al., 2004,) is arguably the dominant framework in performance management (Marr and Schiuma, 2003; Smith, 2005). It has been offered by its inventors, Kaplan and Norton (1996) as the cornerstone of a new strategic management control system which positively links an organization’s long-term strategic intentions with its short-term operational actions.
Despite its global success, the BSC approach has received criticism for the lack of evidence concerning the reliability of the basic hypotheses of BSC. Norreklit (2003) questioned BSC’s hypotheses by arguing that Kaplan and Norton (1996) do not provide a sufficient description of the assumed causal relationships