BALANCED SCORECARD PERSPECTIVES AND PERFORMANCE OF PRIVATE UNIVERSITIES IN KENYA
Abstract
Background of the study: Private universities play a key complementary role in provision of knowledge and relevant skills which are critical in fostering sustainable economic and social development of a country. As the numbers of private universities continue to grow, competition gets stiffer in the market as Universities fight for survival intensifies.
Objectives: This study sought to determine the influence of balanced scorecard perspectives on the performance of private universities in Kenya. The specific variables were customer processes, internal business process, innovation and strategic employee growth.
Methodology: The study was informed by Resource Based Theory and Stakeholders Theory. The study adopted a descriptive research design. The target population was 30 private universities in Kenya. Stratified random sampling was used to select the 190 respondents from the 30 private universities in Kenya. Correlation and regression analysis was used to show the relationship between the independent and dependent variable.
Results and Findings: The regression results showed that customer processes and performance of private universities is positively and significantly related. The results further indicated that internal business processes and performance of private universities is positively and significantly related. The results further indicated that innovation and performance of private universities is positively and significantly related. Lastly, results showed that strategic employee growth and performance of private universities is positively and significantly related.
Conclusion and Recommendations: The study concluded that balanced scorecard perspectives had a significant effect on performance of private universities in Kenya. The study recommends that the private universities should focus on meeting the needs and expectations of their customers, including students, alumni, and donors. This can be achieved through metrics such as student retention rates, alumni satisfaction, and donation amounts. The private universities should measure and monitor the efficiency and effectiveness of their internal processes, including academic and administrative processes. This can be achieved through metrics such as student-to-faculty ratios, time-to-graduation, and administrative process cycle times.
Keywords: Balanced Scorecard, Performance & Private Universities
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