the possibility of appling the balanced ... of marketing studies journal volume 22, issue 1, 2018 1...

Academy of Marketing Studies Journal Volume 22, Issue 1, 2018

1 1528-2678-22-1-120

THE POSSIBILITY OF APPLING THE BALANCED

SCORECARD A TOOL OF EVALUATING THE

STRATEGIC PERFORMANCE OF THE JORDANIAN

PRIVATE UNIVERSITIES (FIELD STUDY FROM THE

PERSPECTIVE OF WORKERS IN PRIVATE

UNIVERSITIES IN JORDAN)

Khaled Attalla Al-Tarawneh, Petra University

ABSTRACT

This study aims at clarifying the concept and applicability of the Balanced Scorecard in

the private universities in Jordan; demonstrating effect on the strategic performance; identifying

availability of the essential features in those universities to apply the Balanced Scorecard; the

relationship between the applicable Balanced Scorecard and the strategic performance; studying

the special four dimensions on which the Balanced Scorecard is based and suitability to the

private universities environment in Jordan. The survey adopted the descriptive analytical

methodology through reference to the different documents like books, newspapers and magazines

and other literature that found to be valid for analysis to get to the study objectives.

Furthermore, the random sample method was used to select the survey sample from the society.

Analysing results shows that four dimension components of the Balanced Scorecard are

available for evaluating the strategic performance in the private universities in Jordan and that

they have a significant impact on development and improvement of the strategic performance

and on efficient achievement of the private university strategic objectives in Jordan. The survey

results shows absence of differences of statistical significance between the responses of the

surveyed people about effects of the Balanced Scorecard dimension components on the level of

the strategic performance of the private universities in Jordan that are attributed to the personal

qualities (age, qualification, discipline, experience). The survey also showed differences of

statistical significance among the responses of the surveyed people about effects of the Balanced

Scorecard dimension components on the level of the strategic performance of the private

universities in Jordan attributed to the scientific qualification. The study recommended the

private universities in Jordan to care for the important application of the Balanced Scorecard

and the four dimensions. The application of Balanced Scorecard reflected in the evaluation and

improvement of the strategic performance and achievement of such strategic objectives

efficiently and effectively with a view to realize a major market share and outstanding position

among the universities.

Keywords: Balanced Scorecard, Performance Strategic, Private Universities.

INTRODUCTION

In the twenty-first century the universities always endeavours to bring about changes in

their policies to transform from the existing situation to the future one. The change is the only


2 1528-2678-22-1-120

stable feature. The different universities are thus requested to continue innovation and

improvement to face the varying challenges at all times and to exploit multifaceted opportunities.

The new approach of the universities as important elements in the social economic life is

the change towards open systems that grow, develop and interact with opportunities and

challenges of environment where they are active.

Change is a natural phenomenon requires transformation of the universities from status

quo to a target position that may secure viability and sustainability in a volatile complicated

environment. Otherwise, acceptance of the status quo is a competitive loss. Within the

framework of the service and industrial institutions confronting the global challenges, the

individual achievements are soon marginalized if not accompanied with institutional framework

supportive to the permanent creativity, education, development and sustainable improvement.

This transformation or change often requires administrative procedures. As is customary, taking

such measures is carried out following the measurement and evaluation stage. The ability to

measure and evaluate something is one of the ability indicators to manage and develop it and an

achievement of efficiency and efficacy of the universities in general.

In addition to the increased competition between the different business sectors, the latter

is required to adopt modern and effective administrative methods and tools to acquire the

qualities and retain them for the longest possible period and helping them choose and apply and

evaluate the already adopted strategies.

After the Second World War, the change drivers have grown up and the entities have

become more complex and the complicated technology and production operations gave rise to

burden control processes within the companies with new requisitions. The administrative

decisions have been significantly affected by the financial measures but failed in the required

orientation for strategic guidance in the long run, therefore, the 1980s held a number of

conceptions and tools like Total Quality Management (TQM) and Kaizen and process re-

engineering and others (Pearce, 2003).

In the light of the foregoing, the Balanced Scorecard was introduced through Robert &

David Norton. It was discussed for the first time in Harvard University 1992. It depends on

vision and strategic goals that can be translated into performance measurement system which in

turn is reflected in attention and general strategic orientation. Every staff member of the

organization seeks to achieve it. Therefore, the balanced performance system is not only

intended for performance measurement but also for planning, implementing, controlling,

administration and evaluation, i.e., an integrated system.

IMPORTANCE OF THE STUDY

The importance of this study stems from adopting the Balanced Scorecard as a tool to

evaluate the strategic performance in the private universities in Jordan as it provides useful

information that may contribute to making the strategic and productive decisions under unstable

and complex environment and a highly competitive one. The system paves the way for the

universities to plan, implement and administer. Evaluation of the organization is never a single

perspective but multifaceted. Thus, the Balanced Scorecard is not intended for measuring

performance only but a system for planning, implementation, control, administration and

evaluation, i.e., an integrated system.


3 1528-2678-22-1-120

The Study is Important because of the Following

Importance of the education sector and its role in social development, building human

and providing him/her with science, know-how and novelty.

Emergence of the role being undertaken by the current performance evaluation system

and whether it makes available adequate and accurate data that reflect the strategic

performance and achievement of goals.

Improvement and development of the current evaluation system in accordance with the

Balanced Performance Perspective to contribute to orienting the university leaderships in

taking the effective strategic decisions.

Study Objectives

The survey tries to achieve the following objectives:

Clarify the Balanced Performance Measurement concept and applicability in evaluating

the strategic performance in the private universities in Jordan.

Analyse and study the applicable performance evaluation system of the universities and

identifying strengths and weaknesses and showing suitability to the needs of the private

universities in Jordan.

Demonstrate the impact that the Balanced Performance Measurement brings about on the

strategic performance of the private universities in Jordan.

Study the important application of the Balanced Scorecard to evaluate the strategic

evaluation of the private universities in Jordan.

To reflect the major success factors and the total performance measurement that measures

factors of success and the university excellence under the adoption of the Balanced

Scorecard.

Introduce a proposed model for the Balanced Scorecard indicators whereby to reflect

mission, vision and objectives of the private universities in Jordan.

Study Methodology

The researcher adopted the analytical descriptive approach in addition to the statistical

analysis approach.

Study Tools

Preliminary data, questionnaire and interviews.

Ancillary data like the books, research, theses and periodicals and internet.

Limits of the Survey

Location limits: Private universities in Jordan

Time: 2016-2017


4 1528-2678-22-1-120

Study Population and Sample

The study population is composed of the private universities in Jordan (19 universities)

and the study sample involves deans and admin and academic unit managers in the universities

(63).

RESEARCH PROBLEM

Nowadays the private universities in Jordan experience important troubles imposed by

the intense competition by the public and international universities and rapid changes faced by

the Higher Education system in addition to changes in tastes and needs of the beneficiaries. It

became necessary that the universities improve their performance for survival and continuity.

This depends on the ability to achieve strategies and the objectives set out in the long run.

It is inevitable for the private universities to identify achievement of the strategies and

objectives to compare them to what was planned at the outset of implementing the strategy

through adopting tools that help them in the evaluation process. Among the most important and

latest tools is the Balanced Scorecard.

The measurement of the university efficiency and efficacy is faced by difficulties due to

their features including heterogeneity and multiplicity of outcomes that gives rise to physical

hard measurement of outcomes and absence of direct profit motives which results in available

measurements approved for performance evaluation; as well as the educational services being

intangible product and requires an interuniversity direct contract for full advantage; lack of

interest in concentrating on satisfaction of beneficiaries of the rendered services; that would

affect quality of services rendered to such beneficiaries; furthermore, the educational services are

non-storable and therefore may not cater for the needs of increased demand or stored the surplus;

thus any shortage or increase would affect the performance evaluation. Based on the foregoing it

is evident that the evaluation of the strategic evaluation of the private universities in Jordan

needs an efficient system to eliminate the troubles being faced by these universities in relation to

the application and implementation of the strategic plans that result in a gap between the planned

strategies and those in practice and to bridge the gap it is imperative to use the Balanced

Scorecard for balanced measurement for more than one performance side at the university level

with a view to reaffirm and enhance strengths and weaknesses to be redressed in order to retain

the competitive and scientific position of the private universities.

The Balanced Scorecard is perceived as one of the best indicators for the evaluation and

measurement of performance as it takes into consideration a set of dimensions including the most

important issues and concerns of the private universities in Jordan and the strategic objectives are

effectively guided by it for measurement of results efficiently.

In the light of the rapid and latest developments in the planning and administration field,

the strategic performance evaluation of the universities is associated with the universities ability

to apply the Balanced Scorecard as performance leads administration which is the latest in the

administration and planning so far in the strategic, admin and financial field. The majority of the

international organizations apply this concept. Therefore, this survey addresses one of the most

vital sectors in education in Jordan, namely the private universities in Jordan. The survey

problem is summarized through identification of the following:


5 1528-2678-22-1-120

Applicability of the Balanced Scorecard as a tool to evaluate the strategic performance of

the private universities in Jordan.

Variables of the Study

First: Independent Variables

The Balanced Scorecard with the following four dimensions:

Financial dimension

Customers' dimension

Internal operations

Learning and growth

Second: Dependent Variable

The strategic performance evaluation of the private universities in Jordan.

STUDY HYPOTHESES

The researcher in responding to the survey problem and objectives used the following

hypotheses:

First Main Hypothesis

H1 The four dimension component of the Balanced Scorecard is made available for evaluating the

strategic performance of the private universities in Jordan.

H1.1 The first sub-hypothesis: The financial dimension component of the Balanced Scorecard is made

available for evaluating the strategic performance of the private universities in Jordan.

H1.2 The second sub-hypothesis: The customers' dimension component is made available (satisfaction

of students) of the Balanced Scorecard for evaluating the strategic performance in the private


H1.3 Third sub-hypothesis: The components of the internal operation dimension of the Balanced

Scorecard are available for evaluating the strategic performance of the private universities in

Jordan.

H1.4 Fourth sub-hypothesis: Components of the education and growth dimension of the Balanced

Scorecard are available for evaluating the strategic performance of the private universities in

Jordan.

The Second Main Hypothesis

H2 There are no differences of statistical significance between the responses of the surveyed people

about impacts of the Balanced Scorecard dimension components at the strategic performance

level of the private universities in Jordan attributed to the personal features (age, nature of work,

qualification, discipline and experience) (Figure 1).


6 1528-2678-22-1-120

FIGURE 1

MODEL OF THE STUDY

Procedural Definitions

Definition of Balanced Scorecard

The balanced scorecard may be defined as an admin system designed to help the entity

translate its vision and strategy into a set of objectives and inter-related strategic measurements

through adoption of the balanced scorecard because the financial report is no longer the only

method whereby companies may evaluate activities and draw their future movements (Kaplan &

Norton, 1992).

Others define it as: The first systematic method tried to design a performance evaluation

system and concerned with translating the entity strategy into certain objectives, measurements,

targeted standards and initiatives for sustainable improvement. Furthermore, it consolidates all

measurements used by the entity. The idea of the balanced scorecard measurement focuses on

description of the basic components for entity success and business subject to the following

considerations (Abdul, 2005):

Time dimension: The performance measurements concern with three time dimensions

namely: Yesterday, today and tomorrow.

Financial and non-financial dimension: Controls the main financial and non-financial

ratios.

Strategic dimension: The performance measurements concern with linking the short-term

operating control with the entity long-term strategic vision.

Dimensions of the Balanced

Scorecard

1- Financial

2- Customers

3- Internal ops

4- Education & growth

Evaluation of the strategic

performance of the private

universities in Jordan

Demographic Features

1- Age

2- Nature of work

3- Scientific qualification

4- Discipline

5- experience

Independent Variable Dependent Variable


7 1528-2678-22-1-120

Social dimension: The performance measurement concern with all internal and external

parties when applying the measurements.

Evaluation of the strategic performance: The strategic performance is a reflection of the

university ability and viability to achieve their objectives. It also reflects uses of financial,

physical and human resources and reflects optimal exploitation of the above to achieve the

university objectives in terms of the market share, excellence and viability. The strategic

evaluation is the process that contributes to rendering information and data used for measuring

achievement of the university objectives to identify the performance attitudes therein, including

different and varying standards, inter alia: Productivity standards, profitability standards, added

value standards, activity indicators and growth rates.

Financial dimension: The dimension includes pure financial objectives such as return on

investment, product cost and cash flow. The dimension is used to measure the financial ratios

and the different financial figures. Furthermore, certain figures may be important at certain times

like the cash flow at times of hardships. The non-profit organizations are different but at the end

of the day they should continue their activities and adequate financial resources.

Customers' dimension: The University should pay attention to satisfy the needs and

desires of customers as they pay money to cover the cost and make the profit. Through

this perspective there are indicators set to reflect position of the customer with the

university. This can be determines the target market sectors and measures success of the

university in these sectors with a view to dominate growth objectives. The universities

use measures such as the market share, number of new customers, customer satisfaction,

loyalty, ability to retain customers, ability to attract customers and customer's

profitability.

Dimension of the internal processes: The university regulations and by laws are measured

for competitiveness, most notably: Renewal (research, patents, number of new

products...) in addition to the education system (quality of education and educational

services…), post-sale service is one of the important systems (customer reception

(students) and problem resolution…). This depends on the internal processes that stand

by customers through bringing about customer value and finance through increased

fortune of shareholders. The internal process is composed of three sub-dimensions as

follows:

a) Innovation process bringing about products, services and operations to cater for

customer needs.

b) Operation: Production, delivery of product and customer service, strategic basic

initiatives of the leading organizations in improving quality of industrialization,

reducing delivery time to the customer and commitment to the delivery time as

scheduled.

c) Product delivery service: To provide the service and back up customers after sale or

service delivery.

Growth and development dimension: This determines the abilities needed to grow the

university to achieve high-level internal processes that create value to customers and

shareholders. The education and growth of the universities confirm three abilities: (1)

Employees abilities to be measured by using the employee understanding, level of his/her


8 1528-2678-22-1-120

skills and a survey of his/her satisfaction and turnover rates, (2) abilities of the

information system measured by first class staff rate, (3) stimulation and bonuses:

Measured by a number of proposals of each staff and proposal application rate.

Previous Studies

Abdul Latif & Torkman, 2006 - Titled "Balanced Scorecard" as a Tool to Measure

Performance

The study is designed to introduce readers to the Balanced Scorecard technology to use

for creating a new system for performance evaluation. The new system combines the financial

and non-financial measurements (operating) and clarifies the basic idea of the scorecard, its

structure and to introduce certain advice to take advantage of in building a comprehensive

system for the organizations to measure and evaluate performance. Among the most important

results of the study is that the Balanced Scorecard is a modern strategic tool for performance

measure and evaluation including the financial and non-financial measurements through the

dimensions of the entity. The Scorecard translates the organization strategy into operating works

taking into consideration the three time dimensions.

Al Shishini, 2004 - Titled "Towards a Framework to Measure Determinants and

Success of the Balanced Scorecard"

The study aimed to propose a framework to measure success of adopting the Balanced

Scorecard through specifying the main factors affecting the use of the Balanced Scorecard like

size of the enterprise, role of the consulting offices, strategy of the enterprise, pattern of the

applicable control and also determination of impact of certain main factors on the success of the

adoption of the Balanced Scorecard and determination of alternatives to measure success or

failure of the Balanced Scorecard, the most important results of the study, introduction of a

framework to measure success of the use of the Balanced Scorecard. It is evident that relations

between certain main factors, measures of the Balanced Scorecard are established in addition to

success of the application of the card.

Abdul, 2003 - Titled "Proposed Framework to use the Balanced Scorecard within

the Non-Government Organizations (NGOs) for the Private Universities to Apply

The study aimed at studying the possible application of the measures (BSC) to the NGOs,

study the difficulties faced the application of (BSC). The study concluded several results

including that the data of the private universities permit application of (BSC) and constitute an

integrated framework to evaluate performance and accountability within the Non-Government

Organizations. The growth and education should account for a baseline in the private business to

play their role in addition to deficient financial and accounting regulations within the private

universities that would not permit extraction of necessary data to achieve control and evaluate

performance.


9 1528-2678-22-1-120

Hamid, 2010 - Using the Balanced Scorecard in Education Organizations

The study addressed the important usage of the Balanced Scorecard in the government

educational organizations in particular with a view to evaluate performance through comparing

the targeted and planned performance with the actual performance in order to evaluate the online

education services. The study concluded that the use of the Balanced Scorecard gave rise to

maximize return from rendering educational services through increasing numbers of

beneficiaries and recipients of service which reflected on growth of revenues of the service

owing to improved performance the product of the sustainable development of rendering it based

on performance evaluation through the customer perspective (students). It concluded also that

facilitation of methods of rendering the educational service and the continued change lead to

permanent interaction between the user and enterprise which reflects increased revenues of

service.

Eelke, 2009 - For Which Purposes Do Managers Use Balanced Scorecards?

The study accurately addressed the purpose the balanced scorecard tries to achieve

through application to rendering electronic services to the information and telecommunication

organizations. The study tested a group of assumptions, inter alia: Does the development of

internal processes based on client proposals contribute to developing the service to increase

revenues and level of client confidence? All responses (224) confirmed priority of development

even if it results in increased cost in the short run. However, it may be capitalized and not being

charged to the results of the period activities because it will increase revenues in the long run.

The study concluded the importance of the balanced scorecard to all enterprises as it is just like a

mirror reflecting results of the enterprise activities against third parties using the financial and

non-financial measures then it is a card for monitoring results of the entity transactions.

Al Shaikh Ali, 2007 - "Performance Evaluation of Palestinian Telecommunication

Corporations by Using the Balanced Scorecard Approach"

The study aimed to evaluate (Jawwal and Palestinian Telecommunication) companies in

the light of the four dimensions of the Balanced Scorecard as estimated by the shareholders and

staff members of the two companies, to propose solutions and recommendations to the

performance-related problems of the above companies, to propose proper standards to measure

and evaluate Jawwal and Telecommunication performance. Among the most important results of

the study is that there is a strong direct correlation of significance between degree of each

dimension of the four dimensions of balanced scorecard and the total score of the card. The

majority of staff members and shareholders of the two companies evaluate the company

performance in the financial and customer aspects equally which is consistent with the visions,

missions and main goals of Jawwal and the Palestinian Telecommunication companies. Most of

them, employees and shareholders gave different estimates of the performance in the internal

operations and education and growth aspects and the highly educated officers expect better

educational activities. The study concluded several recommendations most notably the

improvement and development of the training programs and the internal operating processes,

undertaking mobilization and outreach activities to ensure support of the internal and external

concerned parties.


10 1528-2678-22-1-120

Kaplan & Norton, 1992 - "The Balanced Scorecard Measures that Drive

Performance"

I proposed in this study the Balanced Scorecard for the first time to the researchers. A

reliable approach has been introduced as a measurement and evaluation of performance system

including a group of financial and non-financial (operating) performance measurements with a

view to provide comprehensive information to the organization management to achieve a

competitive advantage. The proposed approach includes four main dimensions- the first:

Financial dimension, how we perceive shareholders; the second: Customers' dimension, how do

customers perceive us? The third: Internal operations dimension: What shall we outperform at?

The fourth: Growth and education dimension: Is it possible to continue improvement and create

values?

Researchers demonstrate importance of the balanced scorecard to avoid resemblance in a

certain dimension. This study provides the executive managers with a comprehensive framework

to translate the strategic objectives of the organization into a coherent set of performance

measures.

Distinctions of this Study

The Balanced Scorecard is a modern scientific trend in the educational environment.

Several studies made by previous researchers tried to test application of the card to profitable and

non-profitable organizations. However, this is the first time to study possible application of the

card to the private universities in Jordan to evaluate the strategic performance. It provides

components to apply the balanced Scorecard and to demonstrate impact on the strategic

performance as a result of this study.

Constancy of the Study Tool

Constancy of the questionnaire is ensured through value of Crohbach Alpha coefficient.

The result would be statistically acceptable if value is greater than (0.60).Whenever value is

close to (1), i.e., 100% it means higher constancy levels of the survey tool (Sekaran, 2010).

Considering the particulars contained in Table 1, we find that the total result of Cronback Alpha

is (96.7%). Therefore, the study tool can be described as constant and the particulars obtained

therefrom are suitable to measure variables and thus undergo high reliability.

Table 1

CONSTANCY COEFFICIENT OF STUDY TOOL

Variables Cronback alpha No. of paragraphs

Independent variables

Financial dimension 96.6 12

Satisfaction of clients 93 21

Internal processes 93.1 17

Education and growth 96/5 14

Dependent variable Evaluation of strategic performance

of the university 07.1 12

Tool as whole 96.7 76


11 1528-2678-22-1-120

Table 2 indicates that the age group (41-50) came first with total number of 39 people by

(61.9%) followed by the age group (51 years and more) with 15 people by 23.8% then followed

by the age group ranked third with 9 people and by 14.3%.

Table 2 shows that the majority of the survey sample people are postgraduates with 39

people and by 61.9% followed by BA holders with 24 people and by 38.1%. The above table

also shows that the majority of the survey sample population is specialized in the admin and

finance sciences with 46 people and by 73% followed by the natural science discipline with 9

members by 14.4% while the humanities specialists are 8 by 12.7%.

Table 2 also indicates that the study sample in terms of years of experience was

distributed to three groups between less than five years and more than ten years. It also shows

that the experience of the 11 people by 17.5% is less than five years however those whose

experience ranges from (5-10 years) amounted to 44 people by 69.8% the group over 15 years

and above was ranked third with 24 people by 20.3% while the group whose experience ranges

from (10 to less than 15 years) was ranked last with 8 people and by 12.7%.

Table 2

PROPORTIONAL DISTRIBUTION OF THE SURVEY SAMPLE ACCORDING TO THE DEMOGRAPHIC

VARIABLES

Variable Options Number %

Age

Less than 40 years 9 14.3

41-50 39 61.9

51 and more 15 23.8

Educational level

Secondary - -

Bachelor degree 24 38.1

Higher education 39 61.9

Discipline

Admin and financial sciences 46 73

Humanities 8 12.7

Natural sciences 9 14.3

Other - -

Experience

5 years and less 11 17.5

5-10 years 44 69.8

More than 10 years 8 12.7

DATA ANALYSIS

The second part of the questionnaire included a set of questions to measure the study

themes as follows:


12 1528-2678-22-1-120

First: Financial Dimension

Table 3

ARITHMETIC MEANS AND STANDARD DEVIATION OF THE STUDY SAMPLE RESPONSES

ABOUT THE QUESTIONNAIRE QUESTIONS THAT MEASURE THE FINANCIAL DIMENSION

No. of

Para Paragraph Mean

Standard

deviation Significance Rank Consent

10

The university contains

an effective division to

improve financing and

financial performance 24 1.87 40.4 1 High

12

The university tries to

achieve interests of

shareholders 13.8 0.913 76.1 2 High

9

The university seeks to

improve the market

value of the university

shares in the Capital

Market 3.79 0.953 75.8 3 High

11

The university sets the

financial goals to be

realized in consultation

with owners 3.79 3.88 75.8 4 High

8

Consolidation of

effective mechanisms to

coordinate with the

university funders 3.76 0.917 75.2 5 High

7

The university's

expenditure from the

approved budget 53.7 2.84 75 6 High

6

The universities

controls the financial

resources and periodical

expenditure methods 7.3 0.944 74 7 High

5

The university renders

services at handy prices

commensurate with the

service level 3.65 0.864 73 8 Medium

2

The university tries to

have foreign funding

sources to grow the

university revenues 23.6 6.90 72.4 9 Medium

1

The financial resources

and available

possibilities in a

manner giving rise to 63.5 1.012 71.2 10 Medium


13 1528-2678-22-1-120

develop the academic

and administrative

performance at the

university

4

The university

management

appropriates a great

deal of the budget to

increase the academic

programs and services 3.52 0.981 770.4 11 Medium

3

The prices of credit

hours commensurate

with number and

quality of rendered

services 3.38 1.069 67.6 12 Medium

3.70 0.794 74 High

Trends of the survey sample were measured through the expressions (1-12) in Table 3.

They range between (3, 38-4.02). All the arithmetic means refer to positive attitudes for the

financial dimension as they all refer to consent of the survey sample to all clauses that measure

the financial dimension between average and high degree. The table indicates that clause No (10)

that provides for: "The University has an effective division to improve the funding and financial

performance"; it is ranked first while clause (3) that provides for: "Prices of credit hours

commensurate with number and quality of the rendered university was ranked last.

Table 4

ARITHMETIC MEANS AND STANDARD DEVIATION OF THE SURVEY SAMPLE RESPONSES

ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE CUSTOMER SATISFACTION

DIMENSION No. of

Para Paragraph Mean

Standard


31

The university management

responds to students

complaints 4.73 0.903 94.6 High 1

29

The university keeps a close

eye on suitability of the

scientific content of the courses

in proportion to students'

abilities 4.39 41.01 87.8 High 2

30


upgrades the relationship with

the graduates and follows their

positions 4.11 0.986 82 High 3

26

The university provides

facilities and services to bring

about a comfortable school

environment 4,05 0.70548 81 High 4

14


explores and diagnose the

labour market requirements 3.87 1.87 77.4 High 5

25

The educational service prices

commensurate with income

levels of individuals 3.73 11.08 74.6 High 6


14 1528-2678-22-1-120

13


explores and diagnoses

students' needs 3.71 0.771 74.2 High 7

27


provides facilities and services

creating a comfortable social

environment to the students 3.71 1.038 74.2 High 7

15


guides the scientific research to

serve customer objectives 3.62 6.90 72.4 High 9

16

The university promotes

teamwork principles between

the faculty members,

administration and students to

complete their programs 3.62 0.869 72.4 High 9

19


develops the necessary admin

services to achieve stability and

harmony 3.61 1.310 72.2 Average 11

32


deals with complaints in a short

time 3.56 1.012 71.2 Average 12

18

When taking decisions relating

to their issues, students are

consulted with 3.53 51.06 70.6 Average 13

33


develops the quality of

rendered educational services

in accordance with the world

academic updates 3.52 9.85 70.4 Average 14

28

The university monitors

suitability of the teaching

methods to the students'

abilities 3.49 1.203 69.8 Average 15

17

The university provides an

academic atmosphere for the

successful education process 3.46 0.947 69.2 Average 16

22


explores opinion of students in

the academic performance 3.42 0.962 68.4 Average 17

21

The university creates balance

between the available academic

potentials and the labour

market requirements 3.38 0.947 67.6 Average 18

23

The university highlights

advantages rendered to the

student against his tuition fees

paid to it 3.34 3.89 66.8 Average 19

20


explores opinion of students in

the admin performance 3.33 0.984 66.6 Average 20

24

The university adopts modern

technological methods to

provide the best academic 3.30 0.977 66 Average 21


15 1528-2678-22-1-120

services

3.62 .,631 72.4 Average

The survey sample attitudes were measured about the customer satisfaction dimension

through the statements (13-33) in Table 4. They ranged (3.30-4.73). All means indicated positive

attitudes for the customer satisfaction. They all refer to consent of the study sample on all

paragraphs that measure the customer satisfaction dimension by degrees ranging from average to

high. The table indicates paragraph (31) that provides for: "The university management responds

to students' complaints" was ranked first while paragraph (24) that provides for: "The university

adopts modern technological methods to provide the best academic services" was ranked last.

That may be interpreted that the study sample agrees that the application of the Balanced

Scorecard carries with it several advantages which prompted the organizations to use it to

achieve customer satisfaction.

Table 5

ARITHMETIC MEANS AND STANDARD DEVIATIONS OF STUDY SAMPLE RESPONSES ABOUT

THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE THE INTERNAL PROCESS DIMENSION No. of

Para Paragraph Mean

Standard


36


develops fields of scientific

research and boosters the

research activity among

academics. 3.32 1.133 17 66.4 Average

35


determines and diagnoses

needs of society and market. 3.38 1.084 15 67.6 Average

49

The university explores

students' opinion continuously

on the admin and academic

performance 3.38 1.156 15 67.6 Average

50

The university considers

students and academics'

remarks 3.46 1.162 14 69.2 Average

34 The university decides needs

and requirements of students 3.49 0.965 13 39.8 Average

37

The university develops fields

of scientific research and

booster student research

activities 3.54 0.997 12 70.8 Average

48

At all times the university

reviews disciplines put forward

and proposes new disciplines

that keep pace with the society

needs 3.56 0.996 11 73.2 Average

38

The university develops

method and quality of the

continuously rendered

educational services 3.57 0.962 10 71 Average

39 The university grows

communities 3.60 0.943 8 72 Average


16 1528-2678-22-1-120

46

The university adopts latest

technologies in rendering

services 3.6 0.908 8 72 Average

43

The university develops its

regulatory procedures for

optimal service of students 3.65 1.003 6 73 Average

45

The university goes through

society and surrounding

environment and determines

needs of labour market in

addition to proposing proper

disciplines to such needs 3.65 0.970 6 73 Average

40


holds training courses for

capacity building and paving

the way for dealing with the

market 3.67 0.967 5 73.4 Average

41

The new university services

are made available in due

course 3.70 1.057 4 74 Average

47


studies and analyses quality of

services being rendered to the

students for excellence 3.75 0.915 3 75 Average

42


holds training courses for

capacity building of students

and for integration in the

labour market 3.78 0.924 2 75.6 Average

44


partners with the private sector

for job opportunities in the

labor market 3.84 1.045 1 76.8 Average

3.57 00.632 71.4 Average

The study sample attitudes about the internal process dimension were measured through

the statements (34-50) in Table 5. They range between (3.32-3.84). These arithmetic means

indicate positive attitudes about the internal process dimension. All the arithmetic means refer to

consent of the study sample on all paragraphs that measure the dimension in degrees ranging

between average and high. The table indicates that paragraph (44) that provides for: "The

university management partners with the private sector for job opportunities in the labour

market" was ranked first while paragraph (36) that provides for: "The university management

develops fields of scientific research and boosters the research activity among academics" was

ranked last. The interpretation is that the study sample agrees that the application of the Balanced

Scorecard improves the internal process dimension.


17 1528-2678-22-1-120

Table 6

THE ARITHMETIC MEANS AND STANDARD DEVIATION OF THE STUDY SAMPLE RESPONSES

ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE EDUCATION AND GROWTH

DIMENSION No.

of

Para Paragraph Mean

Standard


61


enhances inventions and

creative activity of academics

and administrators within and

outside the university 4.14 1.105 82.8 1 High

59

The university provides the

latest physical resources for its

educational programs 4.11 0.882 82.2 2 High

62

The university provides the

latest largest educational

sources 4.00 1.043 82 3 High

56

The university carries into

effect an effective incentive

system giving rise to mitigating

turnover rates 3.98 0.924 79.6 4 High

57

The university concerns with

providing information to the

staff members about the

internal and external

environment that affects the

university activity. 3.97 0.949 79.4 5 High

60

The university upgrades the

academic programs to entrench

culture of technological

knowledge using the updates

available on the world

academic stage 3.94 1.176 78.8 6 High

58

The university is interested in

retaining outstanding

employees 3.89 1.094 77.6 7 High

64


enhances inventions and

creative activities of students 3.87 0.959 77.6 8 High

51


develops capacities of

administrators and academics 3.79 0.901 75.8 9 High

63

The university outperforms at

rendering educational services 3.79 1.065 75.8 9 High

54

The university management is

keen to continue development

of capacities of creativity and

book higher value and

prominence among other

universities 3.63 1.067 72.6 11 Average

52


develops regulations and

regulatory procedures giving 3.52 1.216 70.4 12 Average


18 1528-2678-22-1-120

rise to achieve objectives of the

students' satisfaction

53


employs modern technologies

in accordance with the IT era 3.46 1.162 69.2 13 Average

55


builds skills and current

potentials to meet the required

and targeted level 3.46 1.175 69.2 13 Average

3.83 0.876 76.6 High

Attitudes of the study sample about the education and growth dimension were measured

through the statements (51-64) in Table 6. They ranged (3.46-4.14). The arithmetic means

indicate positive trends for the education and growth dimension. All the arithmetic means refer

to consent of the study sample on all paragraphs that measure the dimension as high. The table

indicates that paragraph (61) that provides for: "The university management enhances inventions

and creative activity of academics and administrators within and outside the university" was

ranked first while the paragraphs (53 & 55) that provides for: "The university management

employs modern technologies in accordance with the IT era-The university management builds

skills and current potentials to meet the required and targeted level, ranked last.

Table 7

THE ARITHMETIC MEANS AND STANDARD DEVIATIONS OF THE STUDY SAMPLE

RESPONSES ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE STRATEGIC

PERFORMANCE EVALUATION

No.

of

Para

Paragraph Mean Standard

deviation

Significance Rank Consent

72

The university reduced cost in

the past three years 4.27 0.865 85.4 1 High

76

The university increased

numbers of students in the past

three years 4.17 0.908 83.4 2 High

67

The university has specialized

departments to improve the

strategic performance 4.13 0.942 82.6 3 High

71

The university occupied a

privileged place among the

private universities 4.11 0.969 82.2 4 High

73

The university is characterized

by attracting high academic

competencies in the last three

years 4.11 0.935 82.2 5 High

69

The university studies reasons

of increasing and decreasing

deviation in each division 4.10 0.893 82 6 High

68

There is an increase in the

actual market share of the

university in the last three

years 4.05 0.991 81 7 High


19 1528-2678-22-1-120

74


by attracting high quality

students in the last three years 4.05 1.023 81 8 High

75


by job stability in the last three

years 4.03 0.897 80.6 9 High

66

The university coordinates

effectively with the influential

internal and external

authorities 4.02 1.100 80.04 10 High

70

The university earns increasing

financial revenues in the last

three years 4.00 1.047 80 11 High

65

The university identifies the

sections in need of

improvement of performance

and treatment of weakness 3.71 1.142 72.2 12 High

4.06 0.851 81.2 High

The study sample attitudes about the strategic performance evaluation of the university

were measured through the paragraphs (65-76) in Table 7 and ranged (3.71-4.27). The arithmetic

means refer to positive attitudes for the strategic evaluation of the university. All the means

indicate consent of the study sample on all paragraphs that measure performance in degrees

varying between high and average. The table reveals that paragraph (72) which provide for: "The

University reduced cost in the past three years" ranked top while paragraph (65) which provides

for: "The University identifies the sections in need of improvement of performance and treatment

of weakness" ranked last.

Testing Hypotheses

Results of Testing the First Main Hypothesis

The first sub-hypothesis provides that: The components of the financial dimension of the

Balanced Scorecard are available for evaluating the strategic performance of private universities

in Jordan.

Table 8

RESULTS OF TESTING THE FIRST MAIN HYPOTHESES Correlation

coefficient R

Coefficient of

determination R2

F-calculated F-tabulated Significance S

0.699 0.489 13.886 3.55 0.000

The above Table 8 shows that value of the correlation coefficient is 0.600 and value of

the coefficient of determination is 0.489 meaning that variable of available components of the

Balanced Scorecard dimensions account for 48.9% of variance in the strategic performance

evaluation of the university. In addition, value of F-calculated is (13.886) which is greater than

T-tabulated=2.55 with statistical significance 0.05, therefore the null hypothesis is rejected and

the alternative one that provides for: The components of the financial dimension of the Balanced


20 1528-2678-22-1-120

Scorecard are available for evaluating the strategic performance of private universities in Jordan

is accepted.

Results of Testing the First Sub-Hypothesis

The first sub-hypothesis provides that: The components of the financial dimension of the


in Jordan.

Table 9

RESULTS OF TESTING THE FIRST SUB-HYPOTHESIS Correlation

coefficient R

Coefficient of

determination R2

T|-calculated T-tabulated Significance S

0.645 0.416 6.595 1.999 0.030

The above Table 9 shows that value of the correlation coefficient is 0.645; value of

coefficient of determination is 0.416 meaning the variable of the available components of the

financial dimension accounts for 41.6% of variance in evaluating the strategic performance of

the university. In addition value of T-calculated is (6.595) greater than value of T-

tabulated=1,999 with statistical significance at 0.05 level. Therefore, the null hypothesis is

rejected and the alternative one that provides for: "The components of the financial dimension of

the Balanced Scorecard are available for evaluating the strategic performance of private

universities in Jordan is accepted

Results of Testing the Second Sub-Hypothesis

The first sub-hypothesis provides that: The components of the customer dimension of the


in Jordan.

Table 10

RESULTS OF TESTING THE SECOND SUB-HYPOTHESIS Correlation

coefficient R

Coefficient of

determination R2


0.333 0.111 2.757 1.999 0.000



customer dimension accounts for 11.1% of variance in evaluating the strategic performance of


tabulated=1.999 with statistical significance at 0.05 level. Therefore, the null hypothesis is

rejected and the alternative one that provides for: "The components of the customer dimension of

the Balanced Scorecard are available for evaluating the strategic performance of private

universities in Jordan is accepted.


21 1528-2678-22-1-120

Results of Testing the Third Sub-Hypothesis

The first sub-hypothesis provides that: The components of the internal process dimension

of the Balanced Scorecard are available for evaluating the strategic performance of private


Table 11

RESULTS OF TESTING THE THIRD SUB-HYPOTHESIS Correlation

coefficient R

Coefficient of

determination R2


0.439 0.193 3.820 1.999 0.000



internal process dimension accounts for 19.3% of variance in evaluating the strategic

performance of the university. In addition value of T-calculated is (3.820) greater than value of

T-tabulated=1,999 with statistical significance at 0.05 level. Therefore, the null hypothesis is

rejected and the alternative one that provides for: The components of the internal process

dimension of the Balanced Scorecard are available for evaluating the strategic performance of

private universities in Jordan is accepted.

Results of Testing the Fourth Sub-Hypothesis

The first sub-hypothesis provides that: The components of the internal process dimension

of the Balanced Scorecard are available for evaluating the strategic performance of private


Table 12

RESULTS OF TESTING THE FOURTH SUB-HYPOTHESIS Correlation

coefficient R

Coefficient of

determination R2


0.338 0.114 2.806 1.999 0.000



customer dimension accounts for 11.4% of variance in evaluating the strategic performance of


tabulated=1.999 with statistical significance at 0.05 level. Therefore, the null hypothesis is

rejected and the alternative one that provides for: The components of the education and growth

dimension of the Balanced Scorecard are available for evaluating the strategic performance of

private universities in Jordan is accepted.

The Second Main Hypothesis

H02 No differences of statistical significance are found between responses of respondents about impact

of components of the Balanced Scorecard dimensions at the strategic performance level of the


22 1528-2678-22-1-120

private universities in Jordan attributed to the personal features (age, qualification, discipline and

experience)

Table 13

RESULTS OF TESTING THE SECOND Variable F-Calculated F-Tabulated Sig**

Age 1.810 3.86 0.218

Scientific qualification 4.263 3.58 0.004

Nature of work 0.003 4.75 0.955

Experience 3.71 3.87 0.876

The statistical significant impact is at (α=0.05) level

Table 13 above reveals that values of F-Calculated are less than values of F-Tabulated for

all demographic variables with the exception of the scientific qualification variable. That means

absence of differences of statistical significance at (α ≤ 0.05) level in impact of available

components of the Balanced Scorecard dimensions on the strategic performance of the

universities attributed to (age, scientific qualification, discipline and experience); presence of

difference with statistical significance at (α ≤ 0.05) in impact of available components of the

Balanced Scorecard dimensions on the evaluation of the strategic performance of the private

universities in Jordan attributed to the scientific qualification.

Table 14

IMPACT VALUES Balanced Scorecard Beta value

Financial dimension 0.649

Customers' satisfaction dimension 0.333 Internal process dimension 0.439 Education and growth dimension 0.338

Table 14 above stands for impact values of the Balanced Scorecard dimensions. The

results reveal that the financial dimension is the most influential after the internal process

dimension ranked second and the education and growth dimension ranked third while the

customer satisfaction rated the last.

RESULTS

Building on the data analysis results, the study came up with the following results:

There is a relationship between the Balanced Scorecard together with its four dimensions

with evaluation of the strategic performance of the private universities.

Analysis results revealed available components of the financial dimension of the

Balanced Scorecard for evaluating the strategic performance of the private universities in

Jordan.

Furthermore, the analysis results revealed presence of customer dimension components

(students' satisfaction) of the Balanced Scorecard for evaluating strategic performance of

the private universities in Jordan.


23 1528-2678-22-1-120

The results showed availability of internal process dimension components of the

Balanced Scorecard for evaluating the strategic performance of the private universities in

Jordan.

The study results indicated available components of education and growth dimension of

the balanced scorecard for evaluating the strategic performance of the private universities

in Jordan.

The analysis results showed absence of differences of statistical significance between

responses of the respondents about impact of Balanced Scorecard dimension components

on the level of the strategic performance of the private universities in Jordan attributed to

the personal features (age, qualification, discipline and experience). It also showed

presence of differences of statistical significance between responses of respondents about

impact of components of the Balanced Scorecard dimensions on the strategic

performance level of the private universities in Jordan.

RECOMMENDATIONS

The university management should adopt the Balanced Scorecard approach to evaluate

the university performance, disseminate culture of balanced scorecard that takes into

account all parties sharing the performance like students, society, labour market, staff

members and workers.

Get the students and workers involved when setting plans and policies in relation to the

academic and administrative side.

Designation of a specialized department to apply the balanced scorecard and to concern

with academic development and strategic performance throughout the educational

process.

Future research on the same subject and adding new themes to this model and link it with

the knowledge and human capital department.

Set up and develop customer indicators of the admission capacity and labour market

requirements, student problems and rapid and radical solutions.

Set up a clear future vision for the university education to address challenges for optimal

investment of the human, admin and technological powers.

Despite the Jordanian universities are keen to keep pace with the scientific development

in the academic performance development field in accordance with the world updates,

they should also intensify efforts to scale up development in the rank of international

universities in particular in the planning and oversight field.

Hold specialized training courses about the balance scorecard to train personnel of the

Jordanian private universities to apply it effectively and to take advantage of the merits

being achieved by the universities. To teach the balanced scorecard approach as a school

curriculum in the Jordanian universities in BA stage even briefly; to teach the balanced

scorecard approach in details for higher studies, post graduates.


24 1528-2678-22-1-120

REFERENCES

Nadeem, M.S. (2013). Evaluation of the financial performance using the balanced scorecard, empirical study in RJ.

Master essay unpublished, Middle East University, Amman: Jordan.

Yousuf, M.M. (2005). The strategic dimension to evaluate the balanced performance, Cairo. Arab Organization

Administration development.

Falah, H.H. (2000). The strategic management. Wael House for Publication, Amman: Jordan.

Ahmed, M. (2001). Plans, policies and strategies.

Mohammed, A.A. (2001). The strategic management (principles and scientific foundations). University House,

Alexandria, Egypt.

Nadia, A. (2002). The strategic planning and globalization. University House, Alexandria, Egypt.

Hamid, A. & Fattah, M. (1999). The strategic management to address challenges of the 21st century. Arab Nile

Group, Egypt.

Suad, N.A.B. (2001). Administration of foundations, business. Wael House, Amman-Jordan.

Haitham, A.H. & Monem, A. (2001). An accounting model to measure and evaluate the institutional performance of

organizations. Research to 2nd

Arab Conference on Administration, Creative Leadership in Addressing

Contemporary Challenges of Arab Administration. Cairo, Egypt

Halah, A.K. (2001). Use of balanced scorecard model to measure the strategic performance of enterprises.

Accountancy and Administration Magazine, 57.

Nabil, A.M.M. (2004). Possible application of the balanced scorecard introduction to business administration,

housing sector, analytical study to a group of Egyptian housing companies, Scientific Magazine for

Economy and Trade, Ein Shams University.

Nadia, R. (2005). Integration of environmental performance indicators into the balanced scorecard to activate role of

the business organizations in the sustainable development. Economic and Administrative Sciences

Magazine, 21.

Hamid, A.A.H. (2003). Proposed introduction to develop the balanced performance measure as a modern trend for

management accounting, accounting thought magazine.

Shahira, M.A.A. (2003). Proposed framework to use the balanced scorecard in the Non-Government Organizations

to apply to the community associations. Egyptian Magazine for Commercial Studies, 27.

Ahmed, R.A.M. (2006). Introduction to the balanced measurement as a tool to develop performance evaluation

systems in the industrial projects. Theoretical applied study, the Scientific Magazine for Research and

Commercial Studies, Halwan University.

Yohanna, A. & Sulemat, A.L. (2000). Feasibility study and performance evaluation (organizations, Maisara

Printing House), Amman

Ahmed, M. (1999). Human Resources Management, University printing Publication House, Cairo.

Abdul, L. & Torokman, H. (2006). Balanced scorecard as performance measuring tool, Tishreen University for

scientific studies and research magazine-economic and legal science chain, 28, 141-156

Shishini, H. & Mohammed, A.R. (2004). Towards a framework to measure determinants of success and adoption of

the balanced scorecard, Zakaziq University, Commercial Research Magazine, 1,147-97,

Abdul, A. & Shaira (2003). A proposed framework to use the balanced scorecard in the NGOs to apply to the

community associations, Egyptian Magazine for Commercial Studies, Mansora University,

Atkinson, A., Young, M., Matsumura, E. & Mukherjee, A. (2012). Management accounting information for decision

making and strategy execution, (6th

Edn), Persons: New York. Capelo, C., Lopes, A.I. & Mata, A. (2012). Teaching the balanced scorecard through simulation. Paper presented

atthe IADIS International Conference on Cognition and Exploratory Learning in Digital Age. Madrid,

Spain.

Burnett, J. (2010). Statewide performance measurement initiatives. The council of state governments.

Jakobsen, M. (2008). Balanced scorecard development in Lithuanian companies: Case study of the Lithuanian

consulting engineering Company. University of Aarhus and Lithuanian.

Cobbold, I. & Lawrie, G. (2002). The development of the balanced scorecard as a strategic management tool.

Performance measurement association.

DeToni, A.F. & Tonchia, S. (2001). Performance measurement systems: Models, characteristics and measures.

International Journal of Operations & Production Management, 21(1)


25 1528-2678-22-1-120

Waal, D. & André, A. (2006). The role of behavioral factors and National cultures in creating effective performance

management Systems. Systemic Practice and Action Research, 19(1).

Eccles, R.G. (1991). Information, Organization and Control. Harvard Business School.

Greiling, D. (2010). Balanced scorecard implementation in German non-profit organizations. International Journal

of Productivity and Performance Management, 59(6).

Johnson, C.C. & Beiman, I. (2007). Balanced scorecard for state-owned enterprises, driving performance and

corporate governance. Asian Development Bank, Philippines.

Kaplan, R.S. & Norton, D.P. (1993) Putting the balanced scorecard to work. Harvard Business Review.

Kaplan, R.S. (2002). The balanced scorecard and non-profit organizations. Balanced scorecard report, Harvard

Business School Publishing.

Kaplan, R.S. & Norton, D.P. (1992). The balanced scorecard measures that drive performance. Harvard Business

Review, 70

Hamid, T. (2010). Using balanced scorecard in educational Organizations. Procedia Social and Behavioral

Sciences, 2(2).

Eelke, W. (2009). For which purposes managers use Balanced Scorecards? An empirical study. Management

Accounting Research, 20(4).

Shaikh, A. & Mohammed, N. (2007). Performance evaluation of Palestinian telecommunication corporations by

using balanced scorecard approach. Master research none publish, Islamic University, Gaza, Palestine.

the possibility of appling the balanced ... of marketing studies journal volume 22, issue 1, 2018 1...

Documents