Balanced Scorecard for Nonprofit Helcare Organisations

What is it about?

Using 232 responses collected from a sample of nonprofit healthcare organisations (NPHOs) in Australia and New Zealand, we empirically validated an improved performance measurement (PM) system for nonprofit organisations. We make a significant contribution to the literature on nonprofit PM as my work addresses the main shortcomings of the theoretical framework of a well-known PM system known as the balanced scorecard (BSC) developed by Professor Robert Kaplan of Harvard University. We used the state-of-the art in partial-least squares structural equation modelling to test the model, which is a coherent set of cause-effect hypotheses involving the performance dimensions underpinning the PM system. In essence, the study validated the overall hypothesis: “mission drives the strategy to achieve the stakeholder outcomes”. The study is the first of its kind on development of a PM framework specific to Australasian NPHOs.

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Why is it important?

The study is the first of its kind on development of a performance measurement framework specific to Australasian nonprofit healthcare organisations.