Beyond financials: Examining the impact of customer focus, internal processes, and learning & growth on the sustainable performance of commercial banks—Moderating role of management commitment

IF 4.8 Q1 BUSINESS Business Strategy and Development Pub Date : 2024-10-29 DOI:10.1002/bsd2.70030
Nathenael Fentaw Ayele, Manjit Singh
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Abstract

This study examines the key factors influencing sustainable performance in commercial banks, focusing on the impact of non-financial metrics—customer focus, internal processes, and learning and growth—within the Balanced Scorecard framework on the performance of commercial banks in Ethiopia. Additionally, it examines the moderating role of management commitment in this relationship, grounded in organizational learning theory, upper echelons theory, and the balanced scorecard model. The study adopts an explanatory research design, utilizing covariance-based structural equation modeling and interaction-term analysis. A multi-stage sampling technique, followed by systematic random sampling, was employed, with Soper's formula used to determine a sample size of 480 from a total population of 4990. Mahalanobis distance was applied to identify and remove biased responses. The findings reveal that non-financial metrics—customer focus, internal processes, and learning and growth—positively affect commercial banks' sustainable performance, and management commitment strengthens this effect. Furthermore, the results empirically validate the proposed hypotheses, emphasizing the value of incorporating non-financial metrics into performance measurement and highlighting the essential role of management commitment in ensuring their success. This research fills a gap in the literature on sustainable performance measurement within the Ethiopian banking sector and provides actionable insights for managers and policymakers.

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超越财务:考察以客户为中心、内部流程以及学习与成长对商业银行可持续绩效的影响--管理层承诺的调节作用
本研究探讨了影响商业银行可持续绩效的关键因素,重点研究了平衡计分卡框架下的非财务指标--以客户为中心、内部流程以及学习与成长--对埃塞俄比亚商业银行绩效的影响。此外,研究还以组织学习理论、高层理论和平衡计分卡模型为基础,探讨了管理承诺在这一关系中的调节作用。本研究采用解释性研究设计,利用基于协方差的结构方程模型和交互项分析。研究采用了多阶段抽样技术,然后是系统随机抽样,并使用索珀公式从 4 990 个样本中确定了 480 个样本量。采用马哈罗诺比距离法来识别和去除有偏差的回答。研究结果表明,非财务指标--以客户为中心、内部流程、学习与成长--对商业银行的可持续绩效有积极影响,而管理层的承诺则加强了这种影响。此外,研究结果从实证角度验证了提出的假设,强调了将非财务指标纳入绩效衡量的价值,并突出了管理承诺在确保其成功方面的重要作用。这项研究填补了埃塞俄比亚银行业可持续绩效衡量方面的文献空白,为管理者和决策者提供了可行的见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Business Strategy and Development
Business Strategy and Development Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)
CiteScore
5.80
自引率
6.70%
发文量
33
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