Academy of Marketing Studies Journal Volume 22, Issue 1, 2018

Transcription

1 THE POSSIBILITY OF APPLING THE BALANCED SCORECARD A TOOL OF EVALUATING THE STRATEGIC PERFORMANCE OF THE JORDANIAN PRIVATE UNIVERSITIES (FIELD STUDY FROM THE PERSPECTIVE OF WORKERS IN PRIVATE UNIVERSITIES IN JORDAN) Khaled Attalla Al-Tarawneh, Petra University ABSTRACT This study aims at clarifying the concept and applicability of the Balanced Scorecard in the private universities in Jordan; demonstrating effect on the strategic performance; identifying availability of the essential features in those universities to apply the Balanced Scorecard; the relationship between the applicable Balanced Scorecard and the strategic performance; studying the special four dimensions on which the Balanced Scorecard is based and suitability to the private universities environment in Jordan. The survey adopted the descriptive analytical methodology through reference to the different documents like books, newspapers and magazines and other literature that found to be valid for analysis to get to the study objectives. Furthermore, the random sample method was used to select the survey sample from the society. Analysing results shows that four dimension components of the Balanced Scorecard are available for evaluating the strategic performance in the private universities in Jordan and that they have a significant impact on development and improvement of the strategic performance and on efficient achievement of the private university strategic objectives in Jordan. The survey results shows absence of differences of statistical significance between the responses of the surveyed people about effects of the Balanced Scorecard dimension components on the level of the strategic performance of the private universities in Jordan that are attributed to the personal qualities (age, qualification, discipline, experience). The survey also showed differences of statistical significance among the responses of the surveyed people about effects of the Balanced Scorecard dimension components on the level of the strategic performance of the private universities in Jordan attributed to the scientific qualification. The study recommended the private universities in Jordan to care for the important application of the Balanced Scorecard and the four dimensions. The application of Balanced Scorecard reflected in the evaluation and improvement of the strategic performance and achievement of such strategic objectives efficiently and effectively with a view to realize a major market share and outstanding position among the universities. Keywords: Balanced Scorecard, Performance Strategic, Private Universities. INTRODUCTION In the twenty-first century the universities always endeavours to bring about changes in their policies to transform from the existing situation to the future one. The change is the only

2 stable feature. The different universities are thus requested to continue innovation and improvement to face the varying challenges at all times and to exploit multifaceted opportunities. The new approach of the universities as important elements in the social economic life is the change towards open systems that grow, develop and interact with opportunities and challenges of environment where they are active. Change is a natural phenomenon requires transformation of the universities from status quo to a target position that may secure viability and sustainability in a volatile complicated environment. Otherwise, acceptance of the status quo is a competitive loss. Within the framework of the service and industrial institutions confronting the global challenges, the individual achievements are soon marginalized if not accompanied with institutional framework supportive to the permanent creativity, education, development and sustainable improvement. This transformation or change often requires administrative procedures. As is customary, taking such measures is carried out following the measurement and evaluation stage. The ability to measure and evaluate something is one of the ability indicators to manage and develop it and an achievement of efficiency and efficacy of the universities in general. In addition to the increased competition between the different business sectors, the latter is required to adopt modern and effective administrative methods and tools to acquire the qualities and retain them for the longest possible period and helping them choose and apply and evaluate the already adopted strategies. After the Second World War, the change drivers have grown up and the entities have become more complex and the complicated technology and production operations gave rise to burden control processes within the companies with new requisitions. The administrative decisions have been significantly affected by the financial measures but failed in the required orientation for strategic guidance in the long run, therefore, the 1980s held a number of conceptions and tools like Total Quality Management (TQM) and Kaizen and process reengineering and others (Pearce, 2003). In the light of the foregoing, the Balanced Scorecard was introduced through Robert & David Norton. It was discussed for the first time in Harvard University It depends on vision and strategic goals that can be translated into performance measurement system which in turn is reflected in attention and general strategic orientation. Every staff member of the organization seeks to achieve it. Therefore, the balanced performance system is not only intended for performance measurement but also for planning, implementing, controlling, administration and evaluation, i.e., an integrated system. IMPORTANCE OF THE STUDY The importance of this study stems from adopting the Balanced Scorecard as a tool to evaluate the strategic performance in the private universities in Jordan as it provides useful information that may contribute to making the strategic and productive decisions under unstable and complex environment and a highly competitive one. The system paves the way for the universities to plan, implement and administer. Evaluation of the organization is never a single perspective but multifaceted. Thus, the Balanced Scorecard is not intended for measuring performance only but a system for planning, implementation, control, administration and evaluation, i.e., an integrated system

3 The Study is Important because of the Following Importance of the education sector and its role in social development, building human and providing him/her with science, know-how and novelty. Emergence of the role being undertaken by the current performance evaluation system and whether it makes available adequate and accurate data that reflect the strategic performance and achievement of goals. Improvement and development of the current evaluation system in accordance with the Balanced Performance Perspective to contribute to orienting the university leaderships in taking the effective strategic decisions. Study Objectives The survey tries to achieve the following objectives: Clarify the Balanced Performance Measurement concept and applicability in evaluating the strategic performance in the private universities in Jordan. Analyse and study the applicable performance evaluation system of the universities and identifying strengths and weaknesses and showing suitability to the needs of the private universities in Jordan. Demonstrate the impact that the Balanced Performance Measurement brings about on the strategic performance of the private universities in Jordan. Study the important application of the Balanced Scorecard to evaluate the strategic evaluation of the private universities in Jordan. To reflect the major success factors and the total performance measurement that measures factors of success and the university excellence under the adoption of the Balanced Scorecard. Introduce a proposed model for the Balanced Scorecard indicators whereby to reflect mission, vision and objectives of the private universities in Jordan. Study Methodology The researcher adopted the analytical descriptive approach in addition to the statistical analysis approach. Study Tools Preliminary data, questionnaire and interviews. Ancillary data like the books, research, theses and periodicals and internet. Limits of the Survey Location limits: Private universities in Jordan Time:

4 Study Population and Sample The study population is composed of the private universities in Jordan (19 universities) and the study sample involves deans and admin and academic unit managers in the universities (63). RESEARCH PROBLEM Nowadays the private universities in Jordan experience important troubles imposed by the intense competition by the public and international universities and rapid changes faced by the Higher Education system in addition to changes in tastes and needs of the beneficiaries. It became necessary that the universities improve their performance for survival and continuity. This depends on the ability to achieve strategies and the objectives set out in the long run. It is inevitable for the private universities to identify achievement of the strategies and objectives to compare them to what was planned at the outset of implementing the strategy through adopting tools that help them in the evaluation process. Among the most important and latest tools is the Balanced Scorecard. The measurement of the university efficiency and efficacy is faced by difficulties due to their features including heterogeneity and multiplicity of outcomes that gives rise to physical hard measurement of outcomes and absence of direct profit motives which results in available measurements approved for performance evaluation; as well as the educational services being intangible product and requires an interuniversity direct contract for full advantage; lack of interest in concentrating on satisfaction of beneficiaries of the rendered services; that would affect quality of services rendered to such beneficiaries; furthermore, the educational services are non-storable and therefore may not cater for the needs of increased demand or stored the surplus; thus any shortage or increase would affect the performance evaluation. Based on the foregoing it is evident that the evaluation of the strategic evaluation of the private universities in Jordan needs an efficient system to eliminate the troubles being faced by these universities in relation to the application and implementation of the strategic plans that result in a gap between the planned strategies and those in practice and to bridge the gap it is imperative to use the Balanced Scorecard for balanced measurement for more than one performance side at the university level with a view to reaffirm and enhance strengths and weaknesses to be redressed in order to retain the competitive and scientific position of the private universities. The Balanced Scorecard is perceived as one of the best indicators for the evaluation and measurement of performance as it takes into consideration a set of dimensions including the most important issues and concerns of the private universities in Jordan and the strategic objectives are effectively guided by it for measurement of results efficiently. In the light of the rapid and latest developments in the planning and administration field, the strategic performance evaluation of the universities is associated with the universities ability to apply the Balanced Scorecard as performance leads administration which is the latest in the administration and planning so far in the strategic, admin and financial field. The majority of the international organizations apply this concept. Therefore, this survey addresses one of the most vital sectors in education in Jordan, namely the private universities in Jordan. The survey problem is summarized through identification of the following:

5 Applicability of the Balanced Scorecard as a tool to evaluate the strategic performance of the private universities in Jordan. Variables of the Study First: Independent Variables The Balanced Scorecard with the following four dimensions: Financial dimension Customers' dimension Internal operations Learning and growth Second: Dependent Variable The strategic performance evaluation of the private universities in Jordan. STUDY HYPOTHESES The researcher in responding to the survey problem and objectives used the following hypotheses: First Main Hypothesis H1 The four dimension component of the Balanced Scorecard is made available for evaluating the strategic performance of the private universities in Jordan. H1.1 The first sub-hypothesis: The financial dimension component of the Balanced Scorecard is made available for evaluating the strategic performance of the private universities in Jordan. H1.2 The second sub-hypothesis: The customers' dimension component is made available (satisfaction of students) of the Balanced Scorecard for evaluating the strategic performance in the private universities in Jordan. H1.3 Third sub-hypothesis: The components of the internal operation dimension of the Balanced Scorecard are available for evaluating the strategic performance of the private universities in Jordan. H1.4 Fourth sub-hypothesis: Components of the education and growth dimension of the Balanced Scorecard are available for evaluating the strategic performance of the private universities in Jordan. The Second Main Hypothesis H2 There are no differences of statistical significance between the responses of the surveyed people about impacts of the Balanced Scorecard dimension components at the strategic performance level of the private universities in Jordan attributed to the personal features (age, nature of work, qualification, discipline and experience) (Figure 1)

6 Dependent Variable Independent Variable Evaluation of the strategic performance of the private universities in Jordan Dimensions of the Balanced Scorecard 1- Financial 2- Customers 3- Internal ops 4- Education & growth Demographic Features 1- Age 2- Nature of work 3- Scientific qualification 4- Discipline 5- experience FIGURE 1 MODEL OF THE STUDY Procedural Definitions Definition of Balanced Scorecard The balanced scorecard may be defined as an admin system designed to help the entity translate its vision and strategy into a set of objectives and inter-related strategic measurements through adoption of the balanced scorecard because the financial report is no longer the only method whereby companies may evaluate activities and draw their future movements (Kaplan & Norton, 1992). Others define it as: The first systematic method tried to design a performance evaluation system and concerned with translating the entity strategy into certain objectives, measurements, targeted standards and initiatives for sustainable improvement. Furthermore, it consolidates all measurements used by the entity. The idea of the balanced scorecard measurement focuses on description of the basic components for entity success and business subject to the following considerations (Abdul, 2005): Time dimension: The performance measurements concern with three time dimensions namely: Yesterday, today and tomorrow. Financial and non-financial dimension: Controls the main financial and non-financial ratios. Strategic dimension: The performance measurements concern with linking the short-term operating control with the entity long-term strategic vision

7 Social dimension: The performance measurement concern with all internal and external parties when applying the measurements. Evaluation of the strategic performance: The strategic performance is a reflection of the university ability and viability to achieve their objectives. It also reflects uses of financial, physical and human resources and reflects optimal exploitation of the above to achieve the university objectives in terms of the market share, excellence and viability. The strategic evaluation is the process that contributes to rendering information and data used for measuring achievement of the university objectives to identify the performance attitudes therein, including different and varying standards, inter alia: Productivity standards, profitability standards, added value standards, activity indicators and growth rates. Financial dimension: The dimension includes pure financial objectives such as return on investment, product cost and cash flow. The dimension is used to measure the financial ratios and the different financial figures. Furthermore, certain figures may be important at certain times like the cash flow at times of hardships. The non-profit organizations are different but at the end of the day they should continue their activities and adequate financial resources. Customers' dimension: The University should pay attention to satisfy the needs and desires of customers as they pay money to cover the cost and make the profit. Through this perspective there are indicators set to reflect position of the customer with the university. This can be determines the target market sectors and measures success of the university in these sectors with a view to dominate growth objectives. The universities use measures such as the market share, number of new customers, customer satisfaction, loyalty, ability to retain customers, ability to attract customers and customer's profitability. Dimension of the internal processes: The university regulations and by laws are measured for competitiveness, most notably: Renewal (research, patents, number of new products...) in addition to the education system (quality of education and educational services ), post-sale service is one of the important systems (customer reception (students) and problem resolution ). This depends on the internal processes that stand by customers through bringing about customer value and finance through increased fortune of shareholders. The internal process is composed of three sub-dimensions as follows: a) Innovation process bringing about products, services and operations to cater for customer needs. b) Operation: Production, delivery of product and customer service, strategic basic initiatives of the leading organizations in improving quality of industrialization, reducing delivery time to the customer and commitment to the delivery time as scheduled. c) Product delivery service: To provide the service and back up customers after sale or service delivery. Growth and development dimension: This determines the abilities needed to grow the university to achieve high-level internal processes that create value to customers and shareholders. The education and growth of the universities confirm three abilities: (1) Employees abilities to be measured by using the employee understanding, level of his/her

8 skills and a survey of his/her satisfaction and turnover rates, (2) abilities of the information system measured by first class staff rate, (3) stimulation and bonuses: Measured by a number of proposals of each staff and proposal application rate. Previous Studies Abdul Latif & Torkman, Titled "Balanced Scorecard" as a Tool to Measure Performance The study is designed to introduce readers to the Balanced Scorecard technology to use for creating a new system for performance evaluation. The new system combines the financial and non-financial measurements (operating) and clarifies the basic idea of the scorecard, its structure and to introduce certain advice to take advantage of in building a comprehensive system for the organizations to measure and evaluate performance. Among the most important results of the study is that the Balanced Scorecard is a modern strategic tool for performance measure and evaluation including the financial and non-financial measurements through the dimensions of the entity. The Scorecard translates the organization strategy into operating works taking into consideration the three time dimensions. Al Shishini, Titled "Towards a Framework to Measure Determinants and Success of the Balanced Scorecard" The study aimed to propose a framework to measure success of adopting the Balanced Scorecard through specifying the main factors affecting the use of the Balanced Scorecard like size of the enterprise, role of the consulting offices, strategy of the enterprise, pattern of the applicable control and also determination of impact of certain main factors on the success of the adoption of the Balanced Scorecard and determination of alternatives to measure success or failure of the Balanced Scorecard, the most important results of the study, introduction of a framework to measure success of the use of the Balanced Scorecard. It is evident that relations between certain main factors, measures of the Balanced Scorecard are established in addition to success of the application of the card. Abdul, Titled "Proposed Framework to use the Balanced Scorecard within the Non-Government Organizations (NGOs) for the Private Universities to Apply The study aimed at studying the possible application of the measures (BSC) to the NGOs, study the difficulties faced the application of (BSC). The study concluded several results including that the data of the private universities permit application of (BSC) and constitute an integrated framework to evaluate performance and accountability within the Non-Government Organizations. The growth and education should account for a baseline in the private business to play their role in addition to deficient financial and accounting regulations within the private universities that would not permit extraction of necessary data to achieve control and evaluate performance

9 Hamid, Using the Balanced Scorecard in Education Organizations The study addressed the important usage of the Balanced Scorecard in the government educational organizations in particular with a view to evaluate performance through comparing the targeted and planned performance with the actual performance in order to evaluate the online education services. The study concluded that the use of the Balanced Scorecard gave rise to maximize return from rendering educational services through increasing numbers of beneficiaries and recipients of service which reflected on growth of revenues of the service owing to improved performance the product of the sustainable development of rendering it based on performance evaluation through the customer perspective (students). It concluded also that facilitation of methods of rendering the educational service and the continued change lead to permanent interaction between the user and enterprise which reflects increased revenues of service. Eelke, For Which Purposes Do Managers Use Balanced Scorecards? The study accurately addressed the purpose the balanced scorecard tries to achieve through application to rendering electronic services to the information and telecommunication organizations. The study tested a group of assumptions, inter alia: Does the development of internal processes based on client proposals contribute to developing the service to increase revenues and level of client confidence? All responses (224) confirmed priority of development even if it results in increased cost in the short run. However, it may be capitalized and not being charged to the results of the period activities because it will increase revenues in the long run. The study concluded the importance of the balanced scorecard to all enterprises as it is just like a mirror reflecting results of the enterprise activities against third parties using the financial and non-financial measures then it is a card for monitoring results of the entity transactions. Al Shaikh Ali, "Performance Evaluation of Palestinian Telecommunication Corporations by Using the Balanced Scorecard Approach" The study aimed to evaluate (Jawwal and Palestinian Telecommunication) companies in the light of the four dimensions of the Balanced Scorecard as estimated by the shareholders and staff members of the two companies, to propose solutions and recommendations to the performance-related problems of the above companies, to propose proper standards to measure and evaluate Jawwal and Telecommunication performance. Among the most important results of the study is that there is a strong direct correlation of significance between degree of each dimension of the four dimensions of balanced scorecard and the total score of the card. The majority of staff members and shareholders of the two companies evaluate the company performance in the financial and customer aspects equally which is consistent with the visions, missions and main goals of Jawwal and the Palestinian Telecommunication companies. Most of them, employees and shareholders gave different estimates of the performance in the internal operations and education and growth aspects and the highly educated officers expect better educational activities. The study concluded several recommendations most notably the improvement and development of the training programs and the internal operating processes, undertaking mobilization and outreach activities to ensure support of the internal and external concerned parties

10 Kaplan & Norton, "The Balanced Scorecard Measures that Drive Performance" I proposed in this study the Balanced Scorecard for the first time to the researchers. A reliable approach has been introduced as a measurement and evaluation of performance system including a group of financial and non-financial (operating) performance measurements with a view to provide comprehensive information to the organization management to achieve a competitive advantage. The proposed approach includes four main dimensions- the first: Financial dimension, how we perceive shareholders; the second: Customers' dimension, how do customers perceive us? The third: Internal operations dimension: What shall we outperform at? The fourth: Growth and education dimension: Is it possible to continue improvement and create values? Researchers demonstrate importance of the balanced scorecard to avoid resemblance in a certain dimension. This study provides the executive managers with a comprehensive framework to translate the strategic objectives of the organization into a coherent set of performance measures. Distinctions of this Study The Balanced Scorecard is a modern scientific trend in the educational environment. Several studies made by previous researchers tried to test application of the card to profitable and non-profitable organizations. However, this is the first time to study possible application of the card to the private universities in Jordan to evaluate the strategic performance. It provides components to apply the balanced Scorecard and to demonstrate impact on the strategic performance as a result of this study. Constancy of the Study Tool Constancy of the questionnaire is ensured through value of Crohbach Alpha coefficient. The result would be statistically acceptable if value is greater than (0.60).Whenever value is close to (1), i.e., 100% it means higher constancy levels of the survey tool (Sekaran, 2010). Considering the particulars contained in Table 1, we find that the total result of Cronback Alpha is (96.7%). Therefore, the study tool can be described as constant and the particulars obtained therefrom are suitable to measure variables and thus undergo high reliability. Independent variables Dependent variable Table 1 CONSTANCY COEFFICIENT OF STUDY TOOL Variables Cronback alpha No. of paragraphs Financial dimension Satisfaction of clients Internal processes Education and growth 96/5 14 Evaluation of strategic performance of the university Tool as whole

11 Table 2 indicates that the age group (41-50) came first with total number of 39 people by (61.9%) followed by the age group (51 years and more) with 15 people by 23.8% then followed by the age group ranked third with 9 people and by 14.3%. Table 2 shows that the majority of the survey sample people are postgraduates with 39 people and by 61.9% followed by BA holders with 24 people and by 38.1%. The above table also shows that the majority of the survey sample population is specialized in the admin and finance sciences with 46 people and by 73% followed by the natural science discipline with 9 members by 14.4% while the humanities specialists are 8 by 12.7%. Table 2 also indicates that the study sample in terms of years of experience was distributed to three groups between less than five years and more than ten years. It also shows that the experience of the 11 people by 17.5% is less than five years however those whose experience ranges from (5-10 years) amounted to 44 people by 69.8% the group over 15 years and above was ranked third with 24 people by 20.3% while the group whose experience ranges from (10 to less than 15 years) was ranked last with 8 people and by 12.7%. Table 2 PROPORTIONAL DISTRIBUTION OF THE SURVEY SAMPLE ACCORDING TO THE DEMOGRAPHIC VARIABLES Variable Options Number % Less than 40 years Age and more Secondary - - Educational level Bachelor degree Higher education Admin and financial sciences Discipline Humanities Natural sciences Other years and less Experience 5-10 years More than 10 years DATA ANALYSIS The second part of the questionnaire included a set of questions to measure the study themes as follows:

12 First: Financial Dimension Table 3 ARITHMETIC MEANS AND STANDARD DEVIATION OF THE STUDY SAMPLE RESPONSES ABOUT THE QUESTIONNAIRE QUESTIONS THAT MEASURE THE FINANCIAL DIMENSION No. of Para Paragraph Mean Standard deviation Significance Rank Consent The university contains an effective division to improve financing and financial performance High The university tries to achieve interests of shareholders High The university seeks to improve the market value of the university shares in the Capital Market High The university sets the financial goals to be realized in consultation with owners High Consolidation of effective mechanisms to coordinate with the university funders High The university's expenditure from the approved budget High The universities controls the financial resources and periodical expenditure methods High The university renders services at handy prices commensurate with the service level Medium The university tries to have foreign funding sources to grow the university revenues Medium The financial resources and available possibilities in a manner giving rise to Medium

13 4 3 develop the academic and administrative performance at the university The university management appropriates a great deal of the budget to increase the academic programs and services Medium The prices of credit hours commensurate with number and quality of rendered services Medium High Trends of the survey sample were measured through the expressions (1-12) in Table 3. They range between (3, ). All the arithmetic means refer to positive attitudes for the financial dimension as they all refer to consent of the survey sample to all clauses that measure the financial dimension between average and high degree. The table indicates that clause No (10) that provides for: "The University has an effective division to improve the funding and financial performance"; it is ranked first while clause (3) that provides for: "Prices of credit hours commensurate with number and quality of the rendered university was ranked last. Table 4 ARITHMETIC MEANS AND STANDARD DEVIATION OF THE SURVEY SAMPLE RESPONSES ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE CUSTOMER SATISFACTION DIMENSION No. of Para Paragraph Mean Standard deviation Significance Rank Consent 31 responds to students complaints High The university keeps a close eye on suitability of the scientific content of the courses in proportion to students' abilities High 2 upgrades the relationship with the graduates and follows their positions High 3 The university provides facilities and services to bring about a comfortable school environment 4, High 4 explores and diagnose the labour market requirements High 5 The educational service prices commensurate with income levels of individuals High

14 explores and diagnoses students' needs High 7 provides facilities and services creating a comfortable social environment to the students High 7 guides the scientific research to serve customer objectives High 9 The university promotes teamwork principles between the faculty members, administration and students to complete their programs High 9 develops the necessary admin services to achieve stability and harmony Average 11 deals with complaints in a short time Average 12 When taking decisions relating to their issues, students are consulted with Average 13 develops the quality of rendered educational services in accordance with the world academic updates Average 14 The university monitors suitability of the teaching methods to the students' abilities Average 15 The university provides an academic atmosphere for the successful education process Average 16 explores opinion of students in the academic performance Average 17 The university creates balance between the available academic potentials and the labour market requirements Average 18 The university highlights advantages rendered to the student against his tuition fees paid to it Average 19 explores opinion of students in the admin performance Average 20 The university adopts modern technological methods to provide the best academic Average

15 services 3.62., Average The survey sample attitudes were measured about the customer satisfaction dimension through the statements (13-33) in Table 4. They ranged ( ). All means indicated positive attitudes for the customer satisfaction. They all refer to consent of the study sample on all paragraphs that measure the customer satisfaction dimension by degrees ranging from average to high. The table indicates paragraph (31) that provides for: " responds to students' complaints" was ranked first while paragraph (24) that provides for: "The university adopts modern technological methods to provide the best academic services" was ranked last. That may be interpreted that the study sample agrees that the application of the Balanced Scorecard carries with it several advantages which prompted the organizations to use it to achieve customer satisfaction. Table 5 ARITHMETIC MEANS AND STANDARD DEVIATIONS OF STUDY SAMPLE RESPONSES ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE THE INTERNAL PROCESS DIMENSION No. of Para Paragraph Mean Standard deviation Significance Rank Consent develops fields of scientific research and boosters the research activity among academics Average determines and diagnoses needs of society and market Average The university explores students' opinion continuously on the admin and academic performance Average The university considers students and academics' remarks Average The university decides needs and requirements of students Average The university develops fields of scientific research and booster student research activities Average At all times the university reviews disciplines put forward and proposes new disciplines that keep pace with the society needs Average The university develops method and quality of the continuously rendered educational services Average The university grows communities Average

16 The university adopts latest technologies in rendering services Average The university develops its regulatory procedures for optimal service of students Average The university goes through society and surrounding environment and determines needs of labour market in addition to proposing proper disciplines to such needs Average holds training courses for capacity building and paving the way for dealing with the market Average The new university services are made available in due course Average studies and analyses quality of services being rendered to the students for excellence Average holds training courses for capacity building of students and for integration in the labour market Average partners with the private sector for job opportunities in the labor market Average Average The study sample attitudes about the internal process dimension were measured through the statements (34-50) in Table 5. They range between ( ). These arithmetic means indicate positive attitudes about the internal process dimension. All the arithmetic means refer to consent of the study sample on all paragraphs that measure the dimension in degrees ranging between average and high. The table indicates that paragraph (44) that provides for: "The university management partners with the private sector for job opportunities in the labour market" was ranked first while paragraph (36) that provides for: " develops fields of scientific research and boosters the research activity among academics" was ranked last. The interpretation is that the study sample agrees that the application of the Balanced Scorecard improves the internal process dimension

17 Table 6 THE ARITHMETIC MEANS AND STANDARD DEVIATION OF THE STUDY SAMPLE RESPONSES ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE EDUCATION AND GROWTH DIMENSION No. of Para Paragraph Mean Standard deviation Significance Rank Consent enhances inventions and creative activity of academics and administrators within and outside the university High The university provides the latest physical resources for its educational programs High The university provides the latest largest educational sources High The university carries into effect an effective incentive system giving rise to mitigating turnover rates High The university concerns with providing information to the staff members about the internal and external environment that affects the university activity High The university upgrades the academic programs to entrench culture of technological knowledge using the updates available on the world academic stage High The university is interested in retaining outstanding employees High enhances inventions and creative activities of students High develops capacities of administrators and academics High The university outperforms at rendering educational services High is keen to continue development of capacities of creativity and book higher value and prominence among other universities Average develops regulations and regulatory procedures giving Average

18 53 55 rise to achieve objectives of the students' satisfaction employs modern technologies in accordance with the IT era Average builds skills and current potentials to meet the required and targeted level Average High Attitudes of the study sample about the education and growth dimension were measured through the statements (51-64) in Table 6. They ranged ( ). The arithmetic means indicate positive trends for the education and growth dimension. All the arithmetic means refer to consent of the study sample on all paragraphs that measure the dimension as high. The table indicates that paragraph (61) that provides for: " enhances inventions and creative activity of academics and administrators within and outside the university" was ranked first while the paragraphs (53 & 55) that provides for: " employs modern technologies in accordance with the IT era- builds skills and current potentials to meet the required and targeted level, ranked last. Table 7 THE ARITHMETIC MEANS AND STANDARD DEVIATIONS OF THE STUDY SAMPLE RESPONSES ABOUT THE QUESTIONNAIRE PARAGRAPHS THAT MEASURE STRATEGIC PERFORMANCE EVALUATION No. of Para Paragraph Mean Standard deviation Significance Rank Consent The university reduced cost in the past three years High The university increased numbers of students in the past three years High The university has specialized departments to improve the strategic performance High The university occupied a privileged place among the private universities High The university is characterized by attracting high academic competencies in the last three years High The university studies reasons of increasing and decreasing deviation in each division High There is an increase in the actual market share of the university in the last three years High

19 The university is characterized by attracting high quality students in the last three years High The university is characterized by job stability in the last three years High The university coordinates effectively with the influential internal and external authorities High The university earns increasing financial revenues in the last three years High The university identifies the sections in need of improvement of performance and treatment of weakness High High The study sample attitudes about the strategic performance evaluation of the university were measured through the paragraphs (65-76) in Table 7 and ranged ( ). The arithmetic means refer to positive attitudes for the strategic evaluation of the university. All the means indicate consent of the study sample on all paragraphs that measure performance in degrees varying between high and average. The table reveals that paragraph (72) which provide for: "The University reduced cost in the past three years" ranked top while paragraph (65) which provides for: "The University identifies the sections in need of improvement of performance and treatment of weakness" ranked last. Testing Hypotheses Results of Testing the First Main Hypothesis The first sub-hypothesis provides that: The components of the financial dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan. Table 8 RESULTS OF TESTING THE FIRST MAIN HYPOTHESES Correlation Coefficient of F-calculated F-tabulated Significance S coefficient R determination R The above Table 8 shows that value of the correlation coefficient is and value of the coefficient of determination is meaning that variable of available components of the Balanced Scorecard dimensions account for 48.9% of variance in the strategic performance evaluation of the university. In addition, value of F-calculated is (13.886) which is greater than T-tabulated=2.55 with statistical significance 0.05, therefore the null hypothesis is rejected and the alternative one that provides for: The components of the financial dimension of the Balanced

20 Scorecard are available for evaluating the strategic performance of private universities in Jordan is accepted. Results of Testing the First Sub-Hypothesis The first sub-hypothesis provides that: The components of the financial dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan. Table 9 RESULTS OF TESTING THE FIRST SUB-HYPOTHESIS Correlation Coefficient of T -calculated T-tabulated Significance S coefficient R determination R The above Table 9 shows that value of the correlation coefficient is 0.645; value of coefficient of determination is meaning the variable of the available components of the financial dimension accounts for 41.6% of variance in evaluating the strategic performance of the university. In addition value of T-calculated is (6.595) greater than value of T- tabulated=1,999 with statistical significance at 0.05 level. Therefore, the null hypothesis is rejected and the alternative one that provides for: "The components of the financial dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan is accepted Results of Testing the Second Sub-Hypothesis The first sub-hypothesis provides that: The components of the customer dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan. Table 10 RESULTS OF TESTING THE SECOND SUB-HYPOTHESIS Correlation Coefficient of T -calculated T-tabulated Significance S coefficient R determination R The above Table 10 shows that value of the correlation coefficient is 0.333; value of coefficient of determination is meaning the variable of the available components of the customer dimension accounts for 11.1% of variance in evaluating the strategic performance of the university. In addition value of T-calculated is (2.575) greater than value of T- tabulated=1.999 with statistical significance at 0.05 level. Therefore, the null hypothesis is rejected and the alternative one that provides for: "The components of the customer dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan is accepted

21 Results of Testing the Third Sub-Hypothesis The first sub-hypothesis provides that: The components of the internal process dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan. Table 11 RESULTS OF TESTING THE THIRD SUB-HYPOTHESIS Correlation Coefficient of T -calculated T-tabulated Significance S coefficient R determination R The above Table 11 shows that value of the correlation coefficient is 0.439; value of coefficient of determination is meaning the variable of the available components of the internal process dimension accounts for 19.3% of variance in evaluating the strategic performance of the university. In addition value of T-calculated is (3.820) greater than value of T-tabulated=1,999 with statistical significance at 0.05 level. Therefore, the null hypothesis is rejected and the alternative one that provides for: The components of the internal process dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan is accepted. Results of Testing the Fourth Sub-Hypothesis The first sub-hypothesis provides that: The components of the internal process dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan. Table 12 RESULTS OF TESTING THE FOURTH SUB-HYPOTHESIS Correlation Coefficient of T -calculated T-tabulated Significance S coefficient R determination R The above Table 12 shows that value of the correlation coefficient is 0.338; value of coefficient of determination is meaning the variable of the available components of the customer dimension accounts for 11.4% of variance in evaluating the strategic performance of the university. In addition value of T-calculated is (3.820) greater than value of T- tabulated=1.999 with statistical significance at 0.05 level. Therefore, the null hypothesis is rejected and the alternative one that provides for: The components of the education and growth dimension of the Balanced Scorecard are available for evaluating the strategic performance of private universities in Jordan is accepted. The Second Main Hypothesis H02 No differences of statistical significance are found between responses of respondents about impact of components of the Balanced Scorecard dimensions at the strategic performance level of the

22 private universities in Jordan attributed to the personal features (age, qualification, discipline and experience) Table 13 RESULTS OF TESTING THE SECOND Variable F-Calculated F-Tabulated Sig** Age Scientific qualification Nature of work Experience The statistical significant impact is at (α=0.05) level Table 13 above reveals that values of F-Calculated are less than values of F-Tabulated for all demographic variables with the exception of the scientific qualification variable. That means absence of differences of statistical significance at (α 0.05) level in impact of available components of the Balanced Scorecard dimensions on the strategic performance of the universities attributed to (age, scientific qualification, discipline and experience); presence of difference with statistical significance at (α 0.05) in impact of available components of the Balanced Scorecard dimensions on the evaluation of the strategic performance of the private universities in Jordan attributed to the scientific qualification. Table 14 IMPACT VALUES Balanced Scorecard Beta value Financial dimension Customers' satisfaction dimension Internal process dimension Education and growth dimension Table 14 above stands for impact values of the Balanced Scorecard dimensions. The results reveal that the financial dimension is the most influential after the internal process dimension ranked second and the education and growth dimension ranked third while the customer satisfaction rated the last. RESULTS Building on the data analysis results, the study came up with the following results: There is a relationship between the Balanced Scorecard together with its four dimensions with evaluation of the strategic performance of the private universities. Analysis results revealed available components of the financial dimension of the Balanced Scorecard for evaluating the strategic performance of the private universities in Jordan. Furthermore, the analysis results revealed presence of customer dimension components (students' satisfaction) of the Balanced Scorecard for evaluating strategic performance of the private universities in Jordan