Effects of balanced scorecard on performance of firms in the service sector

Abstract

This study sought to establish the effects of the Balanced Scorecard (BSC) on performance of firms in the service \nsector. The study location was in Kakamega Municipality, Kenya and a survey research design involving 200 service \nproviding firms was utilized. Stratified random sampling procedure was adopted with the strata organized based on the \nnature of services offered. After the stratification,simple random sampling was utilized to select the respondent firms. Semi-structured questionnaires were employed to collect primary data which were analyzed through descriptive statistics. The study revealed that non-financial criteria are as important as financial criteria in measurement systems and when both measures are integrated in the system, they lead to superior results.

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