An empirical examination of both mediated and moderated effects on followers' commitment to change to the organisational BSC approach

Yi-Feng Yang and Majidul Islam

International Journal of Accounting and Finance, 2009, vol. 1, issue 3, 251-275

Abstract: Kaplan and Norton (2001) presented their Balanced Scorecard (BSC) for the measurement of corporate performance and the setting of measures for employees' performance and adaptation to fit into corporate dynamism. Studies show that when a leader is unable to raise his/her followers' level of commitment to change to the organisational BSC approach, the corporation will have difficulty in achieving its mission. The commitment to change to the BSC approach provides for long-run growth and healthy business performance. This study was designed to empirically examine the effect of both mediated and moderated relations for the transformational leadership process on the followers' level of commitment to change to the organisational BSC approach. The results of the findings indicated that: there was a positive association between the transformational leader's people-oriented behaviour and the followers' level of trust, but a negative relationship between the followers' level of trust and their commitment to change to the BSC approach; the level of trust mediated the association between the leader's transformational task- and people-oriented behaviour and the followers' level of commitment to change to the organisational BSC approach. The findings suggest that the followers' attitude towards the leader, such as their level of general satisfaction, should be identified as a moderating effect/contingency approach.

Keywords: transformational leadership; leadership behaviour; moderated relations; mediated relations; change commitment; organisational BSC; balanced scorecard; corporate performance; performance measurement; trust; organisational change. (search for similar items in EconPapers)
Date: 2009
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