Balanced Scorecard and Organizational Performance of Commercial Banks in South-South Nigeria

Abstract

The study examined, in empirical terms, how the adoption of balanced scorecard will affect the organizational performance of commercial banks in South-South Nigeria. Three dimensions of a typical balanced scorecard were used: financial, customer, and internal business processes. The study was guided by three research questions and three hypotheses. The study was anchored on the theory of contingency of performance measurement. The survey research design was used to carry out the study. Data were obtained from both primary and secondary sources. Primary data were collected using a structured questionnaire measured on a Likert summated scale. The population of the study was drawn from commercial banks operating in South-South Nigeria. The study was done using three hundred and sixty-six employees in the commercial banks operating in South-South, Nigeria. Complete enumeration was adopted; data were presented in tables, and simple regression analysis was used to test the hypotheses. The findings showed that there is a significant and positive relationship between financial, customer experience, and internal business processes on organizational performance of commercial banks in South-South Nigeria. From the empirical findings of the study, it was concluded that financial, customer experience, and internal business processes in balanced scorecard positively impacted the overall organizational performance of commercial banks in South-South Nigeria, and recommend that banks should effectively utilize the balanced scorecard in their systems, and closer attention should be paid to the elements and components of the balanced scorecard.