Purpose: The purpose of the study is to investigate the influence of BSC perspectives on Jordanian banks’ Business Performance.
Methodology: The study surveyed the 100 managers working at 5 Jordanian banks, by means of a questionnaire. Statistical techniques such as descriptive statistics, t-test, correlation, and F analysis were employed. To confirm the suitability of data collection instrument, content validity and Cronbach’s Alpha analysis were used.
Conclusions: The results indicated that there is a high implementation of agent and internal processes perspectives, and moderate implementation of financial and innovation and renewal perspectives. Results also showed that there is a statistically significant and positive relationship between each BSC perspectives and Jordanian banks' performance, and a strong significant positive effect of all BSC perspectives on Jordanian banks' performance.
Research Limitations/Recommendations: The use of one industry and/or one country limits its generalisability to other industries and countries. Extending the analyses to other industries and countries represent future research opportunities.
Contributions/Practical Implications: BSC indicators are very important to measure and develop organizations' performance, and therefore it should be taken into serious consideration when formulating organizatios' strategy. Jordanian banks should coordinate different perspectives of BSC to improve performance and should assign scales for each of the four components of BSC. Finally, similar set of BSC indicators could be developed for other organizations and industries whether government, public or private, profitable or non-profitable organizations.
Expected Value: The current research may be considered as initiative study that highlights the effect of BSC on banks in Jordan. The empirical results of this study built on the previous studies and can provide the reference for further research about the relationship between BSC and organizations' performance.