Do Eco-Efficiency Knowledge Increase Weighting on Environmental Perspective in a Performance Measurement? Experimental Study using Balanced Scorecard

Abstract

Prior research related to performance measurement using the balanced scorecard limited on profit-oriented organizations and has not yet integrated the environmental aspect. This study extends prior studies through environmental aspect integration in a balanced scorecard on the university by an involved internal factor of participants, namely eco-efficiency knowledge.  This study investigates the effect of eco-efficiency knowledge on environmental perspective in a balanced scorecard. The study involved participants in responding to the performance measurement of the faculty officials using a balanced scorecard based on a laboratory experiment. Participants of this study consist of 30 undergraduate students majoring in accounting and accounting education, which acts as an internal quality auditor. Data analysis used to test the hypothesis of this study is the analysis of variance. In an evaluation task using a balanced scorecard, we found that an internal quality auditor with high eco-efficiency knowledge placed more emphasis on an environmental perspective than an internal quality auditor with low eco-efficiency knowledge. Further analysis found that participants with non-educational backgrounds more weight on financial indicators than participants with educational background. The conclusion of the assessment of internal quality auditors is a part of the management performance assessment. This study discusses the implications of university strategic management regarding the importance of environmental performance and future research suggestions.