The Implementation of Balanced Scorecard in Jordanian Islamic Banks

Thaer Faisal Abdelrahim Qushtom

International Journal of Financial Research, 2020, vol. 11, issue 5, 105-114

Abstract: Balanced Scorecard (BSC) has always played an effective role in improving entities' performance. Therefore, it was widely adopted in entities in developed and developing countries. As a relatively new form of banks in the banking sector, exploring the extent of implementation of the BSC perspectives in Islamic banks in developing countries, and its impact on their performance will shed the light on the weaknesses and strengths in the strategic planning systems in these banks. Accordingly, these banks could improve their strategic planning systems. To attain that, two integrated questionnaires were designed and distributed to 355 employees and clients in 3 Jordanian Islamic banks (JIBs). The results showed that the extent of implementation of the BSC perspectives in JIBs ranged between 55% - 93%. In addition, the results showed that there is a significance positive relationship between the BSC and the financial performance (ROA/ROE) of JIBs. Accordingly, the researcher recommended JIBs to increase their interest in implementing the BSC perspectives and to create an effective alignment between all perspectives of the BSC.

Keywords: Balanced Scorecard (BSC); Actor¨Cnetwork theory (ANT); Jordanian Islamic banks (JIBs); financial performance; Return on Assets (ROA); Return on Equity (ROE) (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/17767/11644 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/17767 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:11:y:2020:i:5:p:105-114

DOI: 10.5430/ijfr.v11n5p105

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().