Citation:

Geofrey Ochola Ambubi, Lawrence Odollo, Doreen Njeje. "Balanced Score Card and Performance of Private Chartered Universities in Kenya" International Research Journal of Economics and Management Studies, Vol. 3, No. 9, pp. 209-224, 2024.

Abstract:

The balanced scorecard (BSC) has been a strategic management tool used by organizations to measure and improve performance. The performance in private chartered universities in Kenya has been poor showing the need to use strategic management tools to appraise and monitor performance. This study focused on the performance of the private chartered universities in the country, examining the impacts of the BSC as a strategic management tool on the institutions’ success. It explored the different perspectives-financial, internal processes, learning and growth and customer processes- and how they influence such success. Theoretical frameworks like institutional theory, change theory, stakeholders' theory, and resource-based theory were also studied. Using a mixed-method approach, the study included 383 participants from 25 accredited private universities. Data analysis was performed with SPSS v.27, with descriptive and inferential statistics drawing conclusions and recommendations. The study had 268 respondentsthrough questionnaires and 27 through interviews (78.2% and 62.8% response rates, respectively). The findings showed positive and significant relationship between the finance, customer process, internal business process, learning/growth and performance; as supported by coefficients (r= .785**, p=.000; 𝛽=0.314, 𝑝=0.001), (r= .702**, p= .000; β = 0.282, 𝑝 = 0.003), (r = 0.756**, p = 0.000; β = 0.305, p = 0.001) and (𝑟 = 0.728, 𝑝= 0.000; β = 0.293, p= 0.004) respectively. The study concluded that the perspectives of the BSC and its adoption as a strategic management tool had significant impacts on the performance of chartered private universities in Kenya. Based on the study's findings, it is recommended that chartered private universities in Kenya implement robust financial management policies, adopt a customercentred approach to education, establish operational and quality assurance policies, and foster a culture of continuous learning, innovation and inclusivity among their staff and stakeholders to ensure sustainability and continuous improvement.

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Keywords:

Balanced Scorecard, performance, customer perspective, customer perspective, financial perspective, learning and growth perspective, internal process perspective.