Impact of BSC Implementation on the Performance of an Organization: The Case of Ethiopian Airlines
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Date
2016-05
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Addis Ababa University
Abstract
The impact of BSC implementation on the organization performance is considered to be an
important issue in a current business world in which organizations tries to measure their
performance using different performance evaluation systems. This study empirically
examines the impact of the four BSC components on performance by taking the case of
Ethiopian airlines. The study attempt to highlight the impact of financial, customer, internal
process, and learning and growth perspectives, through which the manager should cascaded
down the organization strategy to the lower level. The study employed structured
questionnaire which was administered on a sample of 336 employees of the airline to
examine the impact of BSC implementation on Ethiopian airlines performance. The study
used SPSS data techniques specifically linear regression for its analysis. Validity, reliability,
and multicollinearity tests were conducted on the data. The data analysis made based on
result conducted through correlation and linear regression. The results of linear regression
analysis shows that the customer perspective (b=0.359, p < 0.01), internal process
perspective (b=0.195, p < 0.01), and learning and growth perspective (b=0.259, p < 0.01)
significantly influence the performance of Ethiopian airlines. But financial perspective
(b=0.031, p > 0.1) is found to be not significant to influence performance of the airlines in
this study. Based on the findings of the study the strength and weakness of BSC
implementation in the airline are also identified. Recommendations are made based on the
overall findings for possible action which will help further improvement based on the
researcher view. This study shows the impact of the three BSC perspectives which
significantly affect the performance of Ethiopian Airlines.
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Keywords
Bsc Implementation on the Performance