Factors that influenced Balanced Scorecard Adoption in Malaysian Private Institutions of Higher Learning

Mohamad Hafiz bin Rosli,Farrah Fawzia binti Md Ariff ,Jamaliah binti Said

The Performance of Institutions of Higher Learning (IHL) is one of the important factors in pushing Malaysia to become an international education hub. In Malaysia, Private Institution of Higher Learning (PIHL) constitutes about 85% of the tertiary education sector in Malaysia. In order to materialize this aim, PIHLs must adopt the most ideal performance measurement system (PMS) to measure their performance. In the 20th century, Balanced Scorecard (BSC) introduced by Kaplan & Norton has been widely utilized among profit oriented businesses and western universities to measure their performance. Different organizations apply BSC differently, in line with their organization’s vision, mission and strategic goals. This paper aims to introduce a BSC as a Performance Measurement System (PMS) to be applied among Malaysian PIHL and to determine the relationship between leadership, communication and academic qualification towards the adoption of BSC in PIHL. Mix method were applied in this study. Semi-structured interviews and survey questionnaire were conducted among the administrators and academicians in selected Malaysian PIHL to gather information on the BSC perspective indicators. The results of this study revealed that majority of the interview respondents and academicians’ at the university extensively agrees that the measurement used in the proposed BSC framework is ideal in assessing academicians’ performances particularly in PIHL and this finding also reveals that leadership, communication and academic qualification were significantly influenced the adoption of BSC. The findings from this study have advanced the literature on BSC specifically in the education sector. It also provides a better understanding of BSC as the performance measurement tool in assessing academicians’ performance and enable them to adjust to the emerging challenges that come as a result of implementing key strategies.

Volume 11 | 08-Special Issue

Pages: 1083-1095