A review of non-financial perspectives of balanced scorecard and financial performance

Abstract

Despite the celebrated performance benefits attributable to BSC in many firms, there exists the dearth of adequate research direction on the effectiveness and improvement of organizational financial performance towards achieving better results, especially with respect to the multiple perspectives of the Balanced Scorecard (BSC). The BSC model has four perspectives: Learning and Growth, Internal Process Perspective, Customer and Financial. This paper therefore reviews the influence of Non-financial BSC perspectives on Financial Performance. Based on existing literature, Non-financial factors have some influence on the BSC on the Financial Performance. This study provides a theoretical basis for future researchers to conduct imperial studies examining the relative importance of Non-financial Performance, and how it supports the Financial Performance and improves their investments.