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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Muhammad Rafiq & XingPing Zhang & Jiahai Yuan & Shumaila Naz & Saif Maqbool, 2020. "Impact of a Balanced Scorecard as a Strategic Management System Tool to Improve Sustainable Development: Measuring the Mediation of Organizational Performance through PLS-Smart," Sustainability, MDPI, vol. 12(4), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:4:p:1365-:d:320059
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    References listed on IDEAS

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    Cited by:

    1. Anna Irimiás & Ariel Mitev, 2020. "Change Management, Digital Maturity, and Green Development: Are Successful Firms Leveraging on Sustainability?," Sustainability, MDPI, vol. 12(10), pages 1-13, May.
    2. Svetlana Demidova & Michael Balog & Tatiana Chircova & Anastasia Kulachinskaya & Svetlana Zueva & Irina Akhmetova & Svetlana Ilyashenko, 2021. "Development of Methodology and Assessment of Ecological Safety of the EAEU and CIS Regions in the Context of Sustainable Development," Economies, MDPI, vol. 9(3), pages 1-20, July.
    3. Muhammad Rafiq & Shumaila Naz & José Moleiro Martins & Mário Nuno Mata & Pedro Neves Mata & Saif Maqbool, 2021. "A Study on Emerging Management Practices of Renewable Energy Companies after the Outbreak of Covid-19: Using an Interpretive Structural Modeling (ISM) Approach," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    4. Mohannad Ahmed Almomoni & We’am Aref Alkhalayleh, 2021. "The Usage of Balanced Scorecard (BSC) in Evaluating the Performance of the University of Jordan/Aqaba Branch from the Academic Staff Perspective," Journal of Social Sciences (COES&RJ-JSS), , vol. 10(2), pages 232-247, April.
    5. Muhammad Rafiq & Saif Maqbool & José Moleiro Martins & Mário Nuno Mata & Rui Miguel Dantas & Shumaila Naz & Anabela Batista Correia, 2021. "A Study on Balanced Scorecard and Its Impact on Sustainable Development of Renewable Energy Organizations; A Mediating Role of Political and Regulatory Institutions," Risks, MDPI, vol. 9(6), pages 1-18, June.
    6. Maria José Gomes & António Sousa & Jorge Novas & Ricardo Vinícius Dias Jordão, 2021. "Environmental Sustainability in Viticulture as a Balanced Scorecard Perspective of the Wine Industry: Evidence for the Portuguese Region of Alentejo," Sustainability, MDPI, vol. 13(18), pages 1-18, September.

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