Analysis of the Causal Relationships Between Measures of Financial and Customer Aspects in Balanced Scorecard

Document Type : Research Paper


Department of Accounting, Bandar abbas branch, Islamic Azad University, Bandar abbas, Iran


As is well known, the strategy dictates how an organization creates value for the stakeholders, customers and citizens. In fact, the strategy is the very factor that guides the organization in its journey towards realizing its vision. In this regard, four perspectives of Balanced Scorecard (BSC) articulate the strategic goals of organization in all respects. The cause-and-effect relationships, outlined in the form of a strategy map, are deemed as the formula for the organization's achievement. Causal relationships map the precise route for the strategy realization. Without such relationships, the organization has only to a set of individual financial and non-financial measures. For the first time in the banking industry of Iran, introduced key indicators of the banking industry and has been investigated the cause and effect relationship between to them. In addition, in the research the author's experiences in the banking industry have been considered so based on this research key variables were extracted from the system and converted to quantitative indicators. Finally, to ensure the validity of the data, the cause and effect relationship has been studied using granger causality method.


Volume 11, Issue 2
December 2020
Pages 103-113
  • Receive Date: 03 November 2019
  • Revise Date: 09 February 2020
  • Accept Date: 15 August 2020