The Relationship between Balanced Scorecard Evaluation Approach and Organizational Performance of Commercial Banks of Nepal

Abstract

The main underlying aim of this study is to examine the relationship between the four perspectives of the BSC evaluation approach and organizational performance. This is descriptive and analytical research. The questionnaire survey is used for collecting information. A total of 945 questionnaires were distributed among the managers of 27 commercial banks. A response rate of 56.40 percent was obtained from these banks including state-owned banks, private banks, and joint-venture banks. The empirical results show that the overall performance of the commercial banks is adequate and satisfactory in all four BSC perspectives. The results of correlation analysis have also revealed positive and significant relationships among all the four dimensions of BSC and organizational performance. Therefore, the application of the BSC evaluation approach is the most important for increasing the organizational performance of companies and businesses.

Keywords: Approach, Balanced scorecard, Evaluation, Organizational performance, Perspective

DOI: 10.7176/RJFA/11-18-01

Publication date:September 30^th 2020