vii
TABLE OF CONTENTS
CHAPTER
TITLE
DECLARATION
DEDICATION
ACKNOWLEDGMENTS
ABSTRACT
ABSTRAK
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF ABBREVIATIONS
LIST OF APPENDICES
1
ii
iii
iv
v
vi
vii
xiv
xvi
xvii
xviii
INTRODUCTION
1
1.1
1.2
1
8
12
13
13
1.6
1.7
Background of the Study
Problem
Statement
Aim of the study
Research Questions and Objectives
Scope of the
Study
Significance of the Study
Definition of Key Terms
1.8
Organisation of Thesis
24
1.3
1.4
1.5
2
PAGE
14
18
LITERATURE REVIEW
25
2.1
2.2
25
26
Introduction
Organisational Performance
viii
2.2.1
2.3
Organisation Performance Management
System
2.2.2 Organisational Performance Measurement
System
2.2.3 Non-financial Organisation Performance
2.2.4 Financial Organisations’ Performance
The Balanced Scorecard (BSC)
2.3.1 Features of Balanced Scorecard
2.3.2 The Balanced Scorecard: A Form of
Performance Measurement System
2.3.3
2.3.4
2.3.5
2.3.6
Balanced Scorecard: A Form of Strategic
Performance Management System
The Generation of Balanced Scorecard
(BSC)
2.3.4.1
The First Generation of
Balanced Scorecard
(1G_BSC)
2.3.4.2
The Second Generation of
Balanced Scorecard
(2G_BSC)
2.3.4.3
The Third Generation of
Balanced Scorecard
(3G_BSC)
2.3.4.4
The Fourth Generation of
Balanced Scorecard
(4G_BSC)
Balanced Scorecard Benefits and
Limitations
2.3.5.1
Benefits of Balanced
Scorecard
2.3.5.2
Limitations of Balanced
Scorecard
Four perspectives of Balanced Scorecard
2.3.6.1
Financial Perspective
2.3.6.2
Customer Perspective
2.3.6.3
Internal process perspective
28
29
33
34
35
36
40
42
44
44
45
46
47
47
48
52
53
54
55
2.3.6.4
2.3.7
Learning and Growth
perspective
Balanced Scorecards (Non-financial and
Financial) Perspectives
2.3.7.1
The Relationship between
Non-Financial BSC and
Financial Performance
a) The Relationship between
Customer Perspective and
Financial Perspective
27
56
57
60
61
ix
2.3.8
b) The Relationship
between Internal Process
Perspective and Financial
Perspective
c) The Relationship between
Learning and Growth
Perspective and Financial
Perspective
Newly Proposed Perspectives for
Balanced Scorecard
2.3.8.1
Corporate Social
Responsibility Perspective
2.3.8.2
Relationship between CSR
and BSC Perspective
a) The Relationship between
Corporate Social
Responsibility Perspective
and Financial Perspective
b) The Relationship between
Corporate Social
Responsibility Perspective
and Customer Perspective
c) The Relationship
between Corporate Social
Responsibility Perspective
and Internal Process
Perspective
d) The Relationship between
Corporate Social
Responsibility Perspective
and Learning and Growth
Perspective
2.3.8.3
Spirituality Perspective
2.3.8.4
Relationship between
Spirituality and BSC
Perspectives
a) The Relationship between
Spirituality Perspective and
Financial Perspective
b) The Relationship between
Spirituality Perspective and
Customer Perspective
c) The Relationship between
Spirituality Perspective and
Internal Process Perspective
d) The Relationship between
Spirituality Perspective and
Learning and Growth
Perspective
63
64
66
66
70
72
73
75
77
79
83
85
87
88
90
x
2.4 Balanced Scorecard Framework in Higher
Education Institution (HEIs)
2.4.1 The Yemen Higher Education System
2.4.2 Performance Management Aspirations of
the Yemen Higher Education
2.4.3 The Implementation of the Balanced
Scorecard in Higher Education
2.4.3.1
Strategy Map
2.4.3.2
Key Performance Index (KPI)
2.4.4 The Implementation of the Balanced
Scorecard in Higher Education in Yemen
2.5
Underpinning Theories
2.5.1 The Stakeholder Theory
2.5.2 Spiritual Leadership Theory
2.6
The Conceptual Framework: Construction of the
Model
2.7
Summary
3
91
97
99
99
101
101
103
103
104
105
107
109
RESEARCH METHODOLOGY
111
3.1
3.2
Introduction
Research Paradigms and Approaches
111
111
3.2.1
112
Research philosophy
3.3
3.2.2 Study Approaches
Research Design
114
115
3.4
Population and Sampling Procedures
118
3.5
Measurement of the Variables
119
3.5.1
119
Measures of BSC Perspectives
3.5.1.1
3.6
3.7.
Measures of Financial
Perspective
3.5.1.2
Measures of Customer
Perspective
3.5.1.3
Measures of Internal Process
Perspective
3.5.1.4
Measures of Learning and
Growth Perspective
3.5.2 Measures of Corporate Social
Responsibility
3.5.3 Measures of Spirituality
3.5.4 Summary of Measurement Items
Questionnaire Design
119
120
120
121
121
122
122
127
Validity and Reliability of Instrument
3.7.1 Validity
127
127
3.7.2
129
Reliability
xi
4
3.8
Questionnaire Pre-test
130
3.9
3.10
3.11
3.12
Pilot Study
Data Collection
Techniques of Data Analysis
Summary
132
134
136
137
FINDINGS, ANALYSIS AND RESULTS
139
4.1
Introduction
139
4.2
Summary of Data Collection Process
139
4.3
Characteristics of the Respondents
141
4.4
Preliminary Data Screening and Analysis
142
4.4.1
4.4.2
143
144
4.5
4.6
5
Treatment of Missing Data
Removing Outliers
4.4.3 Assumption of Normality
4.4.4 Test of Linearity
4.4.5 Multicollinearity Test
Model Quality Evaluation
145
146
146
148
4.5.1
151
151
155
Measurement Model (Outer Model )
4.5.1.1
Convergent Validity
4.5.1.2
Discriminant Validity
4.5.1.3
Internal Consistency
Reliability
4.5.2 Evaluation of the Structural Model (Inner
Model)
4.5.2.1
The Coefficent of
Determination (R² value)
4.5.2.2
Effect Size (f2)
4.5.2.3
Predictive Relevance of the
Model
4.5.2.4
Goodness of Fit (GoF) of the
Model
4.5.2.5
Hypotheses Testing
4.5.3 Effects of Customer perspective, Internal
Process Perspective, Learning and
Growth Perspective as Mediating
4.5.4 Additional Analyses
Summary
158
159
160
162
163
164
165
170
174
174
DISCUSSION AND CONCLUSION
176
5.1
5.2
176
176
Introduction
Summary of Study
xii
5.3
Discussions of Study Findings
5.3.1 Outcomes of the three BSC NonFinancial Perspectives on PUs Financial
Perspective
5.3.1.1
The Influence of Customer
Perspective on PUs Financial
Performance Perspective
5.3.1.2
The Influence of Internal
Process Perspective on PUs
Financial Performance
Perspective
5.3.1.3
The Influence of Learning and
Growth Perspective on PUs
Financial Performance
Perspective
5.3.2 Influence of the Extent of Corporate
Social Responsibility (CSR) affect on
PUs Financial Performance
5.3.3 Outcome of the Extent of Corporate
Social Responsibility (CSR) affects the
three BSC Non-Financial Perspectives
5.3.3.1
The Influence of Corporate
Social Responsibility (CSR)
Perspective on PUs Customer
Perspective
5.3.3.2
The Influence of Corporate
Social Responsibility (CSR)
on PUs Internal Process
Perspective
5.3.3.3
The Influence of Corporate
Social Responsibility (CSR)
Perspective on PUs Learning
and Growth Perspective
5.3.4 Outcome of the influence of Spirituality
affects on PUs Financial Performance
5.3.5
Outcome of the Extent of Spirituality
affects on the three BSC Non-Financial
Perspectives
5.3.5.1
The Influence of Spirituality
Perspective on PUs Customer
Perspective
5.3.5.2
The Influence of Spirituality
Perspective on PUs Internal
Process Perspective
5.3.5.3
The Influence of Spirituality
Perspective on PUs Learning
and Growth Perspective
178
182
182
184
186
189
194
194
196
198
200
203
203
205
206
xiii
5.3.6
5.5
5.6
Effects of Customer perspective, Internal
Process Perspective, Learning and
Growth Perspective as Mediating between
CSR and Spirituality with FP
5.3.6.1
The Mediating Influence of
Customer Perspective
between CSR and Financial
Performance
5.3.6.2
The Mediating Influence of
Customer Perspective
between Spirituality and
Financial Performance
5.3.6.3
The Mediating Influence of
Internal Process Perspective
between CSR and Financial
Performance
5.3.6.4
The Mediating Influence of
Internal Process Perspective
between Spirituality and
Financial Performance
5.3.6.5
The Mediating Influence of
Learning and Growth
Perspective between CSR and
Financial Performance
5.3.6.6
The Mediating Influence of
Learning and Growth
Perspective between
Spirituality and Financial
Performance
Study Contributions to Knowledge
5.4.1 Conceptual/Theoretical Contribution to
Knowledge
5.4.2 Methodological Contribution to
Knowledge
5.4.3 Practical Contribution to Knowledge
Limitations of this Study
Future Research Directions
5.7
Conclusion
5.4
207
208
208
209
210
210
211
212
212
215
216
219
221
222
REFERENCES
226
Appendices A - G
255 - 280
xiv
LIST OF TABLES
TABLE NO.
1.1
2.1
2.2
2.3
2.4
2.5
2.6
3.1
3.2
3.3
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
TITLE
PAGE
13
40
43
44
50
93
102
114
124
133
140
141
146
147
147
154
157
158
5.2
Research questions and Objectives of the study
Lag and Lead Performance Measures
Topological Classification of BSC on five models
Topological Classification of BSC on three models
Balanced scorecard (BSC) strengths and weaknesses
BSC in the Context of Higher Institutions Perspective
Indicators of Performance in HEIs
Research approaches
Summary of Variables Measure
Reliability Analysis of Pilot Study
Summary of Survey
Descriptive statistics of respondents characteristics
Results of Skewness and Kurtosis for Normality Test
Pearson Correlations Analysis Results
Multicollinearity Test for tolerance value and VIF Values
Results of Factor Loading and Average Variance Extracted
Loadings and Cross Loadings (after deletion)
Correlations among Constructs and Discriminant Validity
Cronbach’s Alpha and Composite Reliabilities of
Constructs
Effect Sizes of Latent Variables
Prediction Relevance of the Model
Result of Hypothesis Testing
Mediating effects of Customer, Internal process, and
Learning growth perspectives
Summary of Study Finding through the Questionnaire
Survey with respect to number of Objectives and
hypotheses
Mediating Analyses of the Study Hypotheses
C.1
D.1
Missing Data from the Survey
Outliers Data from the Survey
263
265
4.10
4.11
4.12
4.13
5.1
159
163
164
168
172
180
181
xv
F.1
G.1
Initial Factor Loading and Cross Loadings (before deletion
in initial model)
Result of Additional Hypotheses Testing
277
280
xvi
LIST OF FIGURES
FIGURE NO.
2.1
2.2
2.3
4.1
4.2
4.3
4.4
E.1
E.2
E.3
E.4
E.5
E.6
E.7
E.8
E.9
E.10
E.11
E.12
TITLE
Managing Strategy: Four Processes
Four Perspectives of BSC Source
The Research model
Measurement Model and Structural Model
Initial Research Model
Path Coefficient and R² Values
PLS Bootstrapping (t-values) for the Study Model
Histogram for Dependent Variable: FP
Normal P-P Plot of Regression Standardised
Residual for Dependent Variable: FP
Scatterplot for Dependent Variable: FP
Histogram for Dependent Variable: CP
Normal P-P Plot of Regression Standardised
Residual for Dependent Variable: CP
Scatterplot for Dependent Variable: CP
Histogram for Dependent Variable: IPP
Normal P-P Plot of Regression Standardised
Residual for Dependent Variable: IPP
Scatterplot for Dependent Variable: IPP
Histogram for Dependent Variable: LGP
Normal P-P Plot of Regression Standardised
Residual for Dependent Variable: LGP
Scatterplot for Dependent Variable: LGP
PAGE
41
52
107
148
150
161
167
270
271
271
272
272
273
273
274
274
275
279
280
xvii
LIST OF ABBREVIATIONS
BSC
CP
CSR
FP
HEIs
IPP
LGP
NFP
PLS
PUs
Sp
-
Balanced Scorecard
Customer Perspective
Corporate Social Responsibility
Financial Perspective
Higher Education Institutions
Internal Process Perspective
Learning and Growth Perspective
Non-financial Perspective
Partial Least Square
Private Universities
Spirituality
xviii
LIST OF APPENDICES
APPENDIX
A
B
C
D
E
F
G
TITLE
Questionnaires-English Language
Questionnaires-Arabic Language
Missing Data
Outliers
Linearity Test
Initial Factor Loadings and Cross Loadings
Additional Analyses
PAGE
255
259
263
265
269
276
279