Influence of Balanced Scorecard on Organizational Performance in Institutions of Higher Learning: A Case Study of University of Nairobi and Centre for Mathematics, Science and Technology Education in Africa

Abstract

The balanced scorecard is a framework that enables an organization to implement the chosen strategy as it helps in providing adequate linkages. This enables organizations implement complex and intricate activities in their corporate strategies and monitor activities of the firm with the intent of achieving their strategic objectives.  There is no empirical evidence on the influence of the balanced scorecard in institutions of higher learning in Kenya.  The aim of the study was to investigate the influence of balanced scorecard on organizational performance in institutions of higher learning with emphasis on the University of Nairobi (UON) and Centre for Mathematics, Science and Technology Education in Africa (CEMASTEA).  Findings of the study will assist in adoption of the scorecard by institutions of higher learning that have not adopted its use as a management tool.  The study was guided by the following specific objectives; investigation on customer perspective influence on performance in institutions of higher learning; exploration on whether financial perspective influences organizational performance in institutions of higher learning; an assessment of the internal process perspective and its influence on organization performance in institutions of higher learning and an examination of whether the innovation and learning perspective influences organization performance in institutions of higher learning. A descriptive study was carried out by use of a questionnaire to collect data and interpreted in sections focusing on each of the research questions and study hypotheses.  From the study, it was found that there is a positive relationship between the balanced scorecard and organizational performance, with performance depending on the four perspectives.  Customer perspective was found to be the most popular of the four perspectives.  Findings from the study should be used in serving as a basis for implementation of balanced scorecard in organizational performance in institutions and other public institutions in other sectors.

Keywords: Balanced score card, Organizational performance, Knowledge management