ASSESSING THE USAGE AND IMPACT OF BALANCED SCORECARD AS A PERFORMANCE MEASUREMENT SYSTEM IN THE LIFE INSURANCE SECTOR
DOI:
https://doi.org/10.69980/7nef0998Keywords:
Balanced scorecard, Performance measurement system, financial and non-financial outcomes, StrategyAbstract
Purpose: The contemporary business world is experiencing a rapid change, in the competitive and dynamic, performance management tools are necessary in assessment of the strategic performance of the insurance industry. Conventionally, performance measurement was centered mostly on financial measures that do not apply in the current competitive and strategic world but the trend is moving in the direction of non financial measures of performance measurement. BSC framework has been formulated as a broad based measurement instrument inclusive of both financial and non- financial metrics and respond to the concerns of the modern business set up. The recent study also meant to examine the level of use and the influence of the BSC on the performance of organizations in the public and the private life insurance companies.
Design/methodology/approach – to gather the necessary data, a sample of 300 administrative officers who had been working in life insurance companies in Punjab at the branch level was used to administer structured questionnaire. The sample was a balanced 150 respondents of each gender in the public sector and the chosen companies in private sector in the life insurance industry. MannWhitney U test indicated the differences in adoption of Balanced Scorecard among the public and the private life insurance companies, and the structural model, which were studied through the SmartPLS, showed the existence of significant linkage between the 4 perspectives of the BSC and both performance outcomes.
Findings – Results demonstrate how important the performance outcomes are in the implementation of the BSC perspectives, which suggests that the BSC is effective in offering a evaluation of the performance in an organization.
Research Implications: The study strengthens the literature on strategic performance measurement by empirically demonstrating the Balanced Scorecard’s effectiveness in the life insurance sector and establishing a foundation for future cross-sectoral and longitudinal research.
Practical implications – Life insurance companies can leverage the Balanced Scorecard to strengthen their competitive positioning by focussing key result areas (KRA’s) to meet stakeholder expectations. Furthermore, the insights and outcomes derived from this hold potential applicability for general insurance companies.
Social Implications: The BSC encourages improved service quality, customer satisfaction, and organisational transparency by coordinating strategic objectives with employee- and customer- focused performance metrics, boosting public faith in insurance companies.
Originality/value – The contribute to the existing literature by providing empirical evidence on the effectiveness and outcomes of Balanced Scorecard implementation in life insurance companies highlighting its effectiveness as a strategic performance management tool.
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