IMPACT OF BSC IMPLEMENTATION ON THE PERFORMANCE OF AN ORGANZATION: THE CASE OF ETHIOPIAN AIRLINES

The impact of BSC implementation on the organization performance is considered to be an important issue in a current business world in which organizations tries to measure their performance using different performance evaluation systems. This study empirically examines the impact of the four BSC components on performance by taking the case of Ethiopian airlines. The study attempt to highlight the impact of financial, customer, internal process, and learning and growth perspectives, through which the manager should cascaded down the organization strategy to the lower level. The study employed structured questionnaire which was administered on a sample of 336 employees of the airline to examine the impact of BSC implementation on Ethiopian airlines performance. The study used SPSS data techniques specifically linear regression for its analysis. Validity, reliability, and multicollinearity tests were conducted on the data. The data analysis made based on result conducted through correlation and linear regression. The results of linear regression analysis shows that the customer perspective (b=0.359, p < 0.01), internal process perspective (b=0.195, p < 0.01), and learning and growth perspective (b=0.259, p < 0.01) significantly influence the performance of Ethiopian airlines. But financial perspective (b=0.031, p > 0.1) is found to be not significant to influence performance of the airlines in this study. Based on the findings of the study the strength and weakness of BSC implementation in the airline are also identified. Recommendations are made based on the overall findings for possible action which will help further improvement based on the researcher view. This study shows the impact of the three BSC perspectives which significantly affect the performance of Ethiopian Airlines.