Developing a Comprehensive Bala nced Scorecard for the Banking Sector in Bangladesh: An Empirical Study

Abstract: 

This study is aimed to develop a compre hensive set of perf ormance measurement variables or Key Performance Indicators (KPIs) from Balanced Scorecard (BSC) perspective serving as a benchmark or basis for perfor mance measurement and management system in the banking industry in Bangladesh. The study al so analyzed the perspective of the Balanced Scorecard (BSC) that has signifi cant impact on the performanc e of banks. Here, stratified random sampling technique has been used to se lect the 26 banks as the samples of the study. The respondents of this study are the top m anagers and responsible senior officers of each sample bank. Data have been collected th rough self-administered questionnaires. A five- point Likert scale ranging from 1 (never) to 5 (alw ays) has been used to assess the extent to which a bank uses the perform ance measurement variables. From the factor anal ysis, fifteen factors are extracted explaining a total of 73 .84% of the total variance. The regression analysis reveals that the perfor mance of banks is significantly and positively associated with the learning and growth measures usage of Balanced Scorecard (BSC). Finally, the researchers believe that the contribution of th is study is very much relevant, significant and pragmatic for the banking sector in Bangladesh.

Year: 
Volume: 
XXXVII
Issue: 
1
Page: 
159-186
Article Identifier: 
754