An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance
Article
Article Title | An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance |
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ERA Journal ID | 19067 |
Article Category | Article |
Authors | Sands, John Stephen (Author), Rae, Kirsten Nicole (Author) and Gadenne, David (Author) |
Journal Title | Accounting Research Journal |
Journal Citation | 29 (2), pp. 154-178 |
Number of Pages | 25 |
Year | 2016 |
Publisher | Emerald |
Place of Publication | United Kingdom |
ISSN | 1030-9616 |
Digital Object Identifier (DOI) | https://doi.org/10.1108/ARJ-04-2015-0065 |
Web Address (URL) | HTPM://www.emeraldgrouppublishing.com/licensing/reprints.htm |
Abstract | Purpose – This study aims to investigate the feasibility of integrating the social, environmental and innovation processes within the four-perspective sustainability balanced scorecard (SBSC) model by determining the extent of linkages between and within the four SBSC perspectives. Design/methodology/approach – A survey collected responses from senior management and middle management of large Australian companies. Findings – The findings support several positive significant associations. Direct associations are found between value-creating processes within the internal process perspective. These results support the feasibility of integrating environmental, social and innovation-orientated value-creating process into the internal process of the four-perspective SBSC model. The results also provide evidence about the extent to which direct or indirect associations exist between the four SBSC perspectives: first, direct association of human capital (learning and growth perspective) with value-creating processes (internal processes perspective); second, direct association of value-creating (internal processes perspective) with customer value (customer perspective); and third, direct and indirect associations of value-creating (internal processes perspective) with financial performance (FP; financial perspective). Research limitations/implications – Several limitations are acknowledged related to cross-sectional data, senior and middle managers’ perceptions and assumptions underpinning structural equation modelling. Practical implications – The implications for practice from this study concern how organisational management should relate to their stakeholders while providing value in their FP. Social implications – These associations reflect the influence of stakeholders’ recognised needs on process and product innovation. These needs highlight the benefits of focusing on future-orientated environmental budgets and ongoing employee training that lead to customer value and FP. Originality/value – This is an initial in-depth study of a four-perspective SBSC model that provides an effective means of integrating social, environmental and innovation processes within the traditional four SBSC perspectives. |
Keywords | human capital, corporate social responsibility, environmental process, Innovation-orientated process, Social process, Sustainability balanced scorecard |
ANZSRC Field of Research 2020 | 350105. Management accounting |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | School of Commerce |
University of the Sunshine Coast | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q3x8z/an-empirical-investigation-on-the-links-within-a-sustainability-balanced-scorecard-sbsc-framework-and-their-impact-on-financial-performance
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