Enhancing financial and non-financial performance through the balanced scorecard approach for firm's sustainable development

Abstract

Purpose: Being sustainable enhances the overall performance, including both financial and non-financial factors that are vital to global firms. In this study, an approach to sustainable development of companies in Vietnam is put forward involving an evaluation through the Balanced Scorecard's four perspectives.

Design/methodology/approach: Data from 391 chosen enterprises in Ho Chi Minh City that collected from convenience technique.

Findings: The results confirm a positive influence of the Balanced Scorecard's perspectives (Financial Perspective, Customer Perspective, Internal Business Process Perspective, Learning and Growth Perspective) on both dimensions of firm performance (financial and non-financial) in support of sustainable development.

Research limitations/implications: The use of convenience sampling in the data collection process of surveying enterprises in HCMC might slightly limit the generalizability of the collected data to other regions or industries either within Vietnam or worldwide. There might be a possibility that the sample does not cover or represent all varieties of business operations in different sectors. Additionally, the BSC Framework is recommended as an efficient tool for enhancing business outcomes in HCMC by advocating a holistic approach toward performance management for furthering sustainable growth. If the key strategic areas can be aligned by enterprises, then this will result in much better short-term results and sustainability in the long run.

Practical implications: Managers by the enterprises in HCMC should adopt these perspectives of BSCs to improve performance that is beneficial for effective resource utilization and promoting sustainability.

Social Implications: This study adds to the literature on sustainable performance management at the corporate level, providing contributions for policymakers and practitioners regarding the enhancement of management practices as well as suggesting channels for future research on firm-level sustainable development.

Originality/value: This study is unique as it integrates the BSC framework with the context of sustainable development by focusing on the Vietnamese enterprise environment. It does not follow the traditional line of research where financial or non-financial angles of company performance are taken individually; here, all efforts talk about the integration of these dimensions through the BSC’s four perspectives. Such insight is beneficial for business leaders, policymakers, and academics as it provides evidence that aligning strategic objectives with the perspectives of BSC will promote improved sustainable practices where overall organizational resilience and growth will be enhanced.