Evaluating Balanced Scorecard Adoption in Nigerian Telecommunications: Insights and Implications

Abstract

The study evaluates the application of balanced scorecard (BSC) in performance measurement in the Nigerian telecommunication companies. The study adopted a quantitative research method. The target population of the study comprised all the Nigerian telecommunication companies in operation for at least 10 years. A census strategy was adopted for the selection. The study used both primary and secondary data collected through questionnaire administration and financial reports and accounts of the companies for six years (2018-2023). To describe the primary data, simple percentages were used, and to test the hypotheses formulated, a one-way Analysis of Variance (ANOVA) was conducted utilising Statistical Packages for Social Sciences (SPSS). Regression analysis using STATA was used for the analysis of the secondary data. The findings revealed that the application of BSC has a positive and significant effect on Return on Assets (ROA) as a profitability measure, it has a positive and significant effect on liquidity measure, it also has a positive and significant effect on customer satisfaction measure, and it has a positive and significant effect on employee motivation measure in the Nigerian telecommunication companies; and also, BSC has been strongly applied in some companies, and semi strongly applied in others. Therefore, the telecommunication companies experienced significant growth and development by both strongly and semi-strongly applying BSC. It is therefore recommended in the light of our findings that the telecommunication companies in Nigeria should continue to strongly apply BSC on the above measures and other various measures under the BSC in performance measurement.