Influence of balanced scorecard on corporate performance: a case of Kenya Energy Generation Company (KenGen)
The aim of this study was to determine the influence of the Balanced Scorecard (BSC) on the corporate performance, with major focus on KenGen. The specific objectives were to determine the extent to which KenGen has implemented BSC and to establish the effect of BSC on the performance of KenGen. The research design was descriptive design and the quantitative technique was used. The target population was the 98 functional managers of KenGen based at the headquarters. Purposive sampling was used to select only the functional managers and due to the manageability of the population, census study was employed. The instrument of data collection was the questionnaire. Descriptive statistics namely tables, mean , standard deviation and frequency distribution were used.Linear regression was used to -determine the relationship between the corporate performance and operational activities. The organization largely practices financial perspective practices such as the focus on increased revenue, cost reduction, growth of coverage, and resource utilization a~ong others. There was a positive relationship between financial perspective and organizational performance, The study further established that the organization employed customer focus practices such as retention, customer satisfaction, attracting new customers among others. The study concludes that there was a positive relationship between customer focus and organizational performance. The study found that the organization employed internal business practices such as meeting customer quality, product development, efficiency in product development and service and customer satisfaction. The results found a positive relationship between the internal business and organizational performance. The study established that the organization besides embracing technology, it invested a lot in technology. The organization also took seriously employee satisfaction and emphasized employee training. The study concluded that there was a positive relationship between innovation and learning and organizational performance. The study re.commended that the firms in the energy sector should adopt BSC as a strategy to enhance their organizational performance as more implementation of BSC implies more enhanced organizational performance. The study further recommended that the management of the firms in the energy sector should employ more internal business processes as a strategy to enhance organizational performance as it has the highest influence on the organizational performance. The management of the energy sector firms and KenGen in particular should employ more of innovation and learning as a strategy as the study findings have proved that more technology and learning have an influence on the performance of the organization.