THE MODERATING EFFECT OF PROCEDURAL JUSTICE ON THE EFFECTIVENESS OF THE BALANCED SCORECARD IN IMPROVING MANAGERIAL PERFORMANCE THROUGH ORGANIZATIONAL COMMITMENT

This study extends prior studies on the effectiveness of the Balanced Scorecard (BSC) to improve managerial performance done by Lau and Mosser (2008) and Lau and Sholihin (2005). Specifically, the study empirically tests the moderating effects of procedural justice on the relationship between the financial and nonfinancial dimensions of BSC and managerial performance. It also tests the impact of organizational commitment on performance. Based on survey data from 76 respondents, the results indicate that perceived procedural justice in the use financial and nonfinancial dimensions of the BSC is associated with managers' organizational commitment. It further finds that organizational commitment is positively related to performance. The study extends the literature by providing empirical evidence about the moderating effect of procedural justice on the relationship between the financial and nonfinancial dimensions of BSC and organizational commitment.