Linking Balanced Scorecard Perspectives, Organizational Performance, and Organizational Sustainability: Evidence from Educational Foundations

Abstract

Purpose – This study investigates the influence of the Balanced Scorecard perspectives on Organizational Performance and Organizational Sustainability in educational organizations. Specifically, it analyzes the effects of Financial Perspective, Customer Perspective, Internal Business Process Perspective, and Learning and Growth Perspective, while also examining the mediating role of Organizational Performance in strengthening Organizational Sustainability.

Design/methodology/approach – This study adopts a quantitative causal-explanatory approach. Data were collected through a structured questionnaire distributed to respondents within educational organizations, resulting in 100 valid responses. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The analysis includes measurement model assessment, structural model evaluation, mediation testing, and Importance-Performance Map Analysis (IPMA).

Findings – The results reveal that Customer Perspective (β = 0.267, p = 0.028), Internal Business Process Perspective (β = 0.209, p = 0.050), and Learning and Growth Perspective (β = 0.253, p = 0.008) have significant positive effects on Organizational Performance, while Financial Perspective does not show a significant effect (β = 0.160, p = 0.070). Regarding Organizational Sustainability, Internal Business Process Perspective (β = 0.159, p = 0.029), Learning and Growth Perspective (β = 0.219, p = 0.005), and Organizational Performance (β = 0.480, p < 0.001) demonstrate significant positive effects. However, Financial Perspective and Customer Perspective do not directly affect Organizational Sustainability. Furthermore, Organizational Performance significantly mediates the relationship between Customer Perspective and Organizational Sustainability (β = 0.128, p = 0.044), as well as Learning and Growth Perspective and Organizational Sustainability (β = 0.121, p = 0.015).

Research limitations/implications – This study is limited to educational organizations and uses cross-sectional survey data, which may restrict the generalizability of the findings to other organizational contexts. Future studies are encouraged to apply longitudinal approaches, include broader samples, and examine additional variables such as leadership, organizational culture, digital transformation, and risk management to provide a more comprehensive understanding of organizational sustainability.

Practical implications – The findings provide managerial insights for educational organizations in strengthening sustainability through strategic performance evaluation. Management should prioritize non-financial strategic capabilities, particularly learning and growth, customer orientation, and internal business process improvement, as these dimensions contribute significantly to Organizational Performance and Organizational Sustainability. Financial indicators remain important for institutional stability, but they should be integrated with broader strategic and operational perspectives.

Social implications – Strengthening Organizational Sustainability in educational organizations contributes to the continuity and quality of educational services. By improving organizational performance through strategic evaluation, educational institutions can better respond to stakeholder expectations, resource limitations, governance challenges, and long-term institutional resilience.

Originality/value – This study contributes to the literature by positioning the Balanced Scorecard not only as a performance measurement tool, but also as a strategic evaluation framework for supporting sustainability in educational foundations. The novelty lies in integrating the four Balanced Scorecard perspectives with Organizational Performance and Organizational Sustainability, while also demonstrating the mediating role of Organizational Performance in translating strategic performance dimensions into sustainable organizational outcomes.