An Empirical Investigation on the links within a sustainability balanced scorecard (SBSC) framework and their Impact on Financial Performance

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An Empirical Investigation on the links within a sustainability balanced scorecard (SBSC) framework and their Impact on Financial Performance

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Title: An Empirical Investigation on the links within a sustainability balanced scorecard (SBSC) framework and their Impact on Financial Performance
Author/Creator: Sands, J | Rae, K | Gadenne, D
Description: Purpose: This study investigates the feasibility of integrating the social, environmental, and innovation processes within the four SBSC perspective 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 valuecreating process into the Internal Process of the four SBSC perspective model. The results also provide evidence about the extent direct or indirect associations exist between the four SBSC perspectives: first, human capital (Learning and Growth perspective) direct association with value-creating processes (Internal Processes perspective); second, the value-creating (Internal Processes perspective) direct association with customer value (Customer Perspective); and third, value-creating (Internal Processes perspective) direct and indirect associations with financial performance (Financial perspective). Research limitations: Several limitations are acknowledged related to cross-sectional data, senior and middle managers’ perceptions, and assumptions underpinning structural equation modelling (SEM). 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 orientatedenvironmental budgets and ongoing employee training that lead to customer value and financial performance. Practical implications: The implications for practice from this study concern how organisational management should relate to their stakeholders while providing value in their financial performance. Originality/value: This is an initial in-depth study of a four SBSC perspective model that provides an effective means of integrating social, environmental and innovation processes within the traditional four BSC perspectives.
Relation: Accounting Research Journal / Vol. 29, No. 2, pp.154-178
Relation: http://dx.doi.org/10.1108/ARJ-04-2015-0065
Year: 2016
Publisher: Emerald Group Publishing Ltd.
Subject: FoR 1501 (Accounting, Auditing and Accountability) | FoR 1502 (Banking, Finance and Investment) | sustainability balanced scorecard | environmental management accounting | balanced scorecard | human capital | environmental process | social process | innovation-orientated process | value creating internal processes | customer value | financial performance | structural equation model | non-financial measures

Resource Type: Journal Article
Identifier: ISSN: 1030-9616
Rights: Copyright © 2016 Emerald Group Publishing Limited. This article is © Emerald Group Publishing and permission has been granted for this version to appear here. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.
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