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The Balanced Scorecards Acceptance, importance and use in Libyan higher education (10122017)

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The focus of this paper is to explore the current stage of the acceptance, importance and use of Balanced Scorecard (BSC) as one of performance measurement (PM) techniques, in Libyan higher education. A quantitative methods approach, involving a
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  1 The Balanced Scorecards Acceptance, importance and use in Libyan higher education Samia Aboajela 1 , Somia Amar  2   1 (Accounting Department, Economics and Political Science Factory/ Al-Zaytoonah University) 2 ( Accounting Department, Economics and Political Science Factory/ Tripoli University) Abstract : The focus of this paper is to explore the current stage of the acceptance, importance and use of Balanced Scorecard (BSC) as one of performance measurement (PM) techniques, in Libyan higher education. A quantitative methods approach, involving a survey questionnaire, was adopted. Descriptive statistics, which include frequencies and  percentages, were utilized to present the main characteristics of the sample, the profiles of organisations, and the information gained in relation to the acceptance, importance and use of BSC systems.   The sample of this study consists of a Public university in Libyan higher education. The intended participant lists covered the entire population of this group in Libyan higher education. The study showed that job titles and positions, experience and education levels are among the factors that BSC acceptance, importance and use. This suggests that the decision makers in Libyan higher education use financial, non-financial, and advanced techniques performance measurement systems to evaluate organisational performance. The respondents agreed that using advanced techniques of performance measurement systems (e.g. balanced scorecard) to evaluate organisational  performance is effective; statistically the mean value was above 3 (i.e. moderately used). The agreement about the usefulness of using performance measurement systems, such as the balanced scorecard, had the highest of the means regards to performance measurement systems acceptance  Non-financial performance measurement systems /innovation (e.g. courses or educational programs) got the highest mean and the same rank in both the importance and use of performance measurement systems Keyworda :    Balanced Scorecard, performance measurement, the acceptance, importance and use of Balanced Scorecard. 1.   Introduction The focus of this paper is to explore the current stage of the acceptance, importance and use of Balanced Scorecard (BSC) in Libyan higher education as one of performance measurement (PM) techniques. In development countries the low levels of performance in public sector organisations have been linked to many reasons such as economical, political, social, technical, and cultural in which theses reasons complicate the authority in charge to  play its role effectively. Yet many studies were analysed theses reasons in order to define the problem of week level of  public sector performance and in an attempt to prevent them. This paper is divided mainly into three sections. The first section reviews the traditional PM, critics pointed to them and  2 revealed the need for new system such as BSC. In the later section, the special nature of service businesses in general and the forces that affect education sector in specific is revealed. Finally, the methods chosen to be conducted in this paper are  presented, which was a quantitative research method by questionnaire survey was chosen as the main method for data collection 2. Study problem The study problem is represented in the existence of shortages by the higher education institutions in Libya as of their carrying out the full performance of their role at the current time. They suffer from some weak points like the weakness of the management and employment of the allocations granted to it, the missing or squander of the allocated economic resources and this result from the bad expenditure and the misuse of raw materials in a different way. Therefore appears the urgent need for the measurement and evaluation of such institutions in accordance with modern accounting standards as the result of shortages in the financial indexes in use on which these institutions rely like the estimative balance sheets (budgets) and three basic scopes may be reckoned for the failure of these traditional financial indexes in the integral process of measuring and evaluating. As a result thereby, it becomes significant to search for non financial indexes that represent measurements to realize and develop the process of evaluating and controlling in these institutions and considering the fact that the performance  balanced scorecards states the knowledge of the reasons that made that these institutions are unable to play their role in an exemplar way so that the focus shall be made on the most significant standards, criteria and indexes which help to uplift the qualification of the performance of such institutions and their efficiency and the achievement of the strategic objectives of these institutions and then the improvement of their performance in accordance with their vision, message and strategy. 3. The need for research There are a number of reasons that make this study an valuable one, not least of which is the poor quality of the Libyan higher educational system, according to the Global Competitiveness Report GCR (World Forum, 2013). According to the report, the Libyan higher educational system acts weakly; consequently, there is a need to study the acceptance, importance and use of Balanced Scorecard (BSC) in Libyan higher education as one of performance measurement (PM) techniques to evaluate organisation performance. 4. Research question The research questions and sub- questions arose from gaps existing in the literature of BSC acceptance, their importance and use in Libyan higher education in general and in each type of Libyan higher education in particular. This leads us to the following main research question: What extent are the balanced scorecards systems have acceptance, importance and use in Libyan higher education? This section reviews the research aim and related objectives and addresses the research questions and hypothesis.  3 5. Aims and Objectives: This research aimed to explore and investigate the acceptance, importance and use of performance measurement systems in Libyan higher education and to investigate the following objectives: Objective 1: To identify the acceptance of BSC in Libyan higher education. Objective 2: To identify the Importance of BSC in Libyan higher education. Objective 3: To identify the use of BSC in Libyan higher education 6. Research Questions The study adopted the exploratory research approach to explore the acceptance, importance and use of BSC in Libyan higher education. The main and subsidiary questions for this research arise from gaps existing in the literature concerning BSC acceptance, importance and use in Libyan higher education. This leads us to the following main research question: What extent are the balanced scorecards systems have acceptance, importance and use in Libyan higher education? Subsidiary questions are the following: 1-   To what extent are the balanced scorecards systems acceptable in Libyan education system? 2-   To what extent are the balanced scorecards systems considered important in Libyan education system? 3-   To what extent are the balanced scorecards systems used in Libyan education system? 7. Research Methodology The study adopted an exploratory research approach to investigate the impact the acceptance, importance and use of BSC as a performance measurement systems. A quantitative method approach, involving a survey questionnaire was adopted. Survey is a popular and common strategy in business and management research and is most frequently used to answer “who, what, where, how much and how many questions” (Saunders et al, 2007). Sharma (2008) argues that survey research is widely regarded as inherently quantitative and positivist unlike qualitative methods involving unstructured interviews,  participant observation, focus groups, case studies etc. In addition, a survey strategy is usually associated with a deductive approach and allows the researcher to collect quantitative data that can be analysed statistically in the later stages. Data were analysed using the Statistical Package for Social Sciences (SPSS) version 20.0 for Mac software. Descriptive statistics, which include frequencies and percentages, were utilized to present the main characteristics of the sample and the  profile BSC acceptance, importance and use of BSC in Libyan higher education.  4 8. Balanced Scorecard (BSC). Balanced Scorecard (BSC) is a comprehensive performance management and measurement model, which has been developed by Kaplan & Norton in 1992 in the USA, Balanced Scorecard (BSC) can be expressed as the name of a model or mechanism, which transforms a firm’s organisational strategy to operational concepts (Kaplan and Norton, 2001; Kaplan and Norton, 1992). The model emphasizes, in particular, th e terms of “balance” and “measurement”. Here, “balance” is explained through four desired factors of the model: (1) long and short-term purposes, (2) financial and non-financial measurements, (3) operation and result indicators, and (4) internal and external perspectives of the organisation. The “measurement” gets its meaning in the concise expression of Kaplan and Norton (1996) “if you cannot measure, you cannot manage”. Briefly, BSC reminds us once more of how the characteristic of performance measurement  system is important in affecting the attitude and behaviour of the manager and employees. Mendoza & Zrihen (2001) argue that although the balanced scorecard (BSC) has been extremely successful in the US, it knew success in France before that. BSC is a French management control tool called " Tableaux De Bord" which mean in English language as " performance”. Jones (2009) states that in recent years, the balanced scorecard (BSC) has become a standard topic in journals and management accounting textbooks because companies seek new ways to maintain a viable  position in the marketplace.  Neely et al, (2005)  state that the best known performance measurement framework is Kaplan and Norton’s (1992)  “balanced scorecard”. The Balanced Scorecard (BSC) is a strategic performance measure that Kaplan and Norton created in the 1990s. The “Balanced Scorecard” in an article titled as “The Balanced Scorecard –    Measures that Drive Performance”, Harvard Business Review, January/February 1992 as one of the non-financial performance measurements. This article revealed that a financial measure in a management system was causing organisations to do the wrong things and they report on outcomes and the consequences of past actions, with the result what organisations should use to do right things. Organisations should measure the strategy not the performance. The balanced scorecard is an advanced tool of the management accounting performance measurement systems, which is utilized to evaluate, control and improve processes through comparing the performance of different organisational levels. In addition, all types of profit and non-profit organisations use the balanced scorecard, and it has become a standard management tool (Kaplan & Norton 1992). It has been found that Balanced Scorecard adopters who did not develop a causal model of their strategy experienced specific problems more than those who developed a causal model of their strategy. It affected the outcomes and ease of implementation of the Balanced Scorecard (Othman, 2006). Debusk & Crabtree (2006) argue that 88% of regular users of the balanced scorecard think it has improved their operating performance as a result of a survey of Investment Management Association (IMA) members of management  positions. Self (2004) adopted this tool for a variety of reasons “In essence, the BSC enables us to gain better control of our statistical operations. By limiting the number of scorecard metrics, it forces the user to decide what is important and to identify those numbers that truly make a difference. It also introduces some balance into their statistical work. Like many libraries, they have collected much data regarding resources and user services, but other areas have not received the same attention. The BSC compels them to look at finance, internal processes and the future. Another important aspect of the BSC  5 is the assigning of targets or goals”. A good balanced scorecard should have an appropriate mix of outcomes (lagging indicators) and performance drivers (leading indicators) of the b usiness unit’s strategy. There is a large volume of published studies describing the role of the Balanced Scorecard as a such as an important model Eker & Eker (2009) in this study, we thought that comprehensive understanding on multiple performance measures was possible with the balanced scorecard concept. Meng & Minogue (2011, p. 472) in their research found that the key  performance indicators were, the Balanced Scorecard (BSC), and the Business Excellence Model (BEM)are more widely accepted and more effective than others. Lisiecka & Czyż -Gwiazda (2013) argue that to achieve a level of excellence in the new global economy to compete in global organisations need to search for methods and models to help organisations make the best results. Performance measurement systems (PMS), such as Balanced Scorecard, focus on organisational  performance and can be considered as a means to achieve the performance objectives. 8.1   Definition of Balanced Scorecard The Balanced Scorecard (BSC) is a strategic performance management framework that allows organisations to manage and measure the delivery of their strategy. Johnson et al (2008) define Strategy as a direction and scope of an organization over the long term: which achieves the advantage for the organization through its configuration of resources within a changing environment, to meet the needs of the markets and to fulfil stakeholder expectation. Punniyamoorthy & Murali (2008) say that the BSC is a performance management tool that can be used by organisations of any size to reconcile the vision and mission with all their functional requirements and everyday work. The concept was initially introduced by Robert Kaplan and David Norton in 1992 and has since then been voted as one of the most influential business ideas of the  past 75 years (Bible, Kerr, & Zanini, 2006). The Balanced Scorecard emphasises that financial and non-financial measures must be part of the information system for employees at all levels of the organisation (Robert S. Kaplan & Norton, 1996c). “In 1990, the Nolan Norton Institute, the research arm of KPMG1, sponsored a one-year, multi-company study on the future of performance measurement. The 12 companies that formed the srcinal study group believed that an exclusive reliance on financial performance metrics alone was causing their companies to do the wrong things” (Bible et al., 2006). The balanced scorecard is organised into four different perspectives as shown in Fig. (1): financial, customers, internal  business process, strategy, and growth. Consequently, the balanced scorecard consists of four separate perspectives. Each  perspective contains aims for one field so that the four perspectives achieve the balance between the short and long-term aims and also between the material aims as well as the aims that pertain to the work development. Furthermore, the  balanced scorecard should not be used as a controlling system but it should be used as a communication, informing and learning system.
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