Impact of a Balanced Scorecard as a Strategic Management System Tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart

Muhammad Rafiq, XingPing Zhang, Jiahai Yuan, Shumaila Naz and Saif Maqbool
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Muhammad Rafiq: School of Economics and Management, North China Electric Power University, Beijing 100000, China
XingPing Zhang: School of Economics and Management, North China Electric Power University, Beijing 100000, China
Jiahai Yuan: School of Economics and Management, North China Electric Power University, Beijing 100000, China
Shumaila Naz: Faculty of Business and Management Sciences, The Superior College Lahore, Lahore 54000, Pakistan
Saif Maqbool: National University of Computer & Emerging Sciences, Chiniot-Faisalabad Campus, Chiniot 35400, Pakistan

Sustainability, 2020, vol. 12, issue 4, 1-19

Abstract: The study was carried out to investigate the empirical effect of a strategic management system on sustainable development by using a balanced scorecard (BSC), as a theoretical lens, and organizational performance, as an intervening variable. The study incorporated a positivism research paradigm in order to address the objective nature of research. As the current study has an empirical and impartial nature, a quantitative method was considered the best method for achieving the research objectives of the study. The study used questionnaires as a data collection instrument. In total, three hundred questionnaires were disturbed among Chinese power companies based in Pakistan. A stratified-random sampling approach was adopted to reach relevant respondents. Partial least squares-structural equation modeling was used for statistical analysis. BSC indicated a positive influence on sustainable development. Additionally, organizational performance depicted partial mediation between the strategic management system and sustainable development. The study underpins the theoretical foundation of a resource-based view (RBV) and a balanced scorecard view of the strategic management system. The findings suggest that non-financial measures have better consequences for employees’ performance, making them ecologically responsive, unlike the financial performance measures used previously. The study suggests taking measures related to wastage and usage of inimitable resources that focus on in-addition rather traditional measures, which can allow sustainable development.

Keywords: strategic management system; balanced scorecard; environmental sustainability and sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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