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Examining the Causal Relationships of Balanced Scorecard Perspectives on Organizational Performance Improvement: A Case Study from the Indonesian Public Sector

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  • Alpha Nur Setyawan Pudjono

    (School of Business and Management Institut Teknologi Bandung, Indonesia. Author-2-Name: Dermawan Wibisono Author-2-Workplace-Name: "School of Business and Management Institut Teknologi Bandung, Jalan Ganesha 10, 40132, Bandung, Indonesia. " Author-3-Name: Ima Fatima Author-3-Workplace-Name: Department of Civil Engineering, Faculty of Civil and Environmental Engineering, Institut Teknologi Bandung, Jalan Ganesha 10, 40132, Bandung, Indonesia. Author-4-Name: Ilma Nurul Rachmania Author-4-Workplace-Name: School of Business and Management Institut Teknologi Bandung, Jalan Ganesha 10, 40132, Bandung, Indonesia. Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - This research aimed to explore the causal relationships among performance indicators in the Balanced Scorecard framework of the Indonesia Public Sector. Methodology/Technique - Quantitative and path analysis were used to collect and analyze primary data. The research included 24 Regional Public Sector Offices and 268 Local Public Sector Offices as part of the sample. Findings - The findings showed substantial causal relationships within the Public Sector Balanced Scorecard perspectives, with training significantly influencing employee performance in taxation dissemination and tax supervision activities. However, the impact of training on tax audit performance was considered insignificant. The empirical evidence suggested that tax audit was the only performance indicator positively associated with tax compliance. Determinant factors for tax revenue included tax compliance, dissemination, audit, and supervision. Novelty - This research contributes crucial insights by showing intricate causal relationships among performance indicators, indicating the significant impact of training on distinct facets of employee performance. Additionally, the study identifies tax audits as an essential factor positively influencing tax compliance. The analysis provides new perspectives on the applicability of the Balanced Scorecard in the public sector context, particularly in developing countries. Type of Paper - Empirical"

Suggested Citation

  • Alpha Nur Setyawan Pudjono, 2024. "Examining the Causal Relationships of Balanced Scorecard Perspectives on Organizational Performance Improvement: A Case Study from the Indonesian Public Sector," GATR Journals afr232, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr232
    DOI: https://doi.org/10.35609/afr.2024.8.4(3)
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    References listed on IDEAS

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    1. Mooraj, Stella & Oyon, Daniel & Hostettler, Didier, 1999. "The balanced scorecard: a necessary good or an unnecessary evil?," European Management Journal, Elsevier, vol. 17(5), pages 481-491, October.
    2. Touchton,Michael Ryan & Wampler,Brian & Peixoto,Tiago Carneiro, 2019. "Of Governance and Revenue : Participatory Institutions and Tax Compliance in Brazil," Policy Research Working Paper Series 8797, The World Bank.
    3. Yael Perlman, 2013. "Causal Relationships in the Balanced Scorecard: A Path Analysis Approach," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(1), pages 70-79, February.
    4. Hoque, Zahirul, 2014. "20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research," The British Accounting Review, Elsevier, vol. 46(1), pages 33-59.
    5. Bernard Morard & Alexandru Stancu & Christophe Jeannette, 2013. "Time Evolution Analysis And Forecast Of Key Performance Indicators In A Balanced Scorecard," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(2), pages 9-27.
    6. Mary A. Malina & Hanne S. O. Nørreklit & Frank H. Selto, 2007. "Relations among Measures, Climate of Control, and Performance Measurement Models," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 935-982, September.
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    More about this item

    Keywords

    Balanced Scorecard; Path Analysis; Public Sector; Taxation; Performance Indicators.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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