This paper proposes and tests a model to explain the cause-and-effect relationships
among the four perspectives of the Balanced Scorecard: learning and growth, internal business processes, customer and financial. Drawing from the management, MIS and accounting literatures, the model proposes that the financial dimension is directly affected by continuous improvements in all of the other three perspectives. Using stepwise regression, we found preliminary empirical support for the model based on publicly available data for 332 companies included in the American Institute of Certified Public Accountants Performance Measurement Survey.
Keywords: Balanced Scorecard, Learning and Growth, Internal Business Processes, Customer
and Financial performance measures.