Comparing Performance Using Balance Scorecard Method: Evidence of Conventional vs Shariah Insurance Firms

Trie Nadirra, Fazli Syam BZ, Muslim A. Djalil

Abstract


Objective – The purpose of this study is to evaluate and compare the overall company performance using the concept of Balance Scorecard at conventional insurance firm and its Syariah counterpart. This study took the case of an insurance company which have its conventional as well as Syariah branch namely PT AB Medan Branch and PT AB Syariah Aceh Branch.

 

Design/methodology – Sample in this study were employees and partners both from PT AB Medan Branch and PT AB Syariah Aceh Branch. Secondary data were derived from financial statements for 2 years period of 2018-2019.

 

Results – The results of the study showed that (1) when viewed from a financial perspective, PT AB Medan Branch is better than PT AB Aceh Branch; (2) when viewed from a non-financial perspective (customer satisfaction and learning growth), both PT AB Medan Branch and PT AB Syariah Aceh Branch show very good signs of satisfaction, namely the average value above 4; and (3) when viewed from a non-financial perspective (internal business processes) PT AB Medan Branch is better than PT AB Aceh Branch. This implies the different strength portrayed by conventional and shariah insurance firms indicating the areas that they can focus for improvement.


Keywords


Performance Measurement, Balance Scorecard

Full Text:

PDF

References


Agbanu, P. G., Nayrko, I. K., Agbemava, E., Sedzro, E., & Selase, E. (2016). Measuring strategic performance in state-owned organizations : An evaluation of five proposed. International Journal of Scientific and Research Publications, 6(3), 138–153.

Al-Hosaini, F. F., & Sofian, S. (2015). A review of balanced scorecard framework in higher education institution (HEIs). International Review of Management and Marketing, 5(1), 26–35.

Al-Najjar, S. M., & Kalaf, K. H. (2012). Designing a balanced scorecard to measure a bank’s performance : A case study. International Journal of Business Administration, 3(4), 44–53. Retrieved from https://doi.org/10.5430/ijba.v3n4p44

Bostan, I., & Grosu, V. (2011). Contribution of balance scorecard model in efficiency of managerial control. Romanian Journal of Economic Forecasting, 3(22), 178–199.

Cooper, D. R., & Pamela, S. S. (2006). Metode riset bisnis. Jakarta: PT Media Global Edukas.

Deddy, M. (2005). Ilmu komunikasi suatu pengantar. Bandung: PT Remaja Rosdakarya.

Djalil, M., Musnadi, S., Murkhana, & Rauzaturrahmi. (2018). Capital structure analysis of multinational and domestic manufacturing companies in Indonesia. Research Journal of Finance and Accounting, 9, 146–155.

Gawankar, S., Kamble, S. S., & Raut, R. (2015). Performance measurement using balance score card and its applications: A review. Journal of Supply Chain Management Systems, 4(3). Retrieved from https://doi.org/10.21863/jscms/2015.4.3.009

Ghozali, I. (2012). Aplikasi analisis multivariate dengan program IBM SPSS. Yogyakarta: Universitas Diponegoro.

Ibrahim, R., Deiriadi, D., & Fahlevi, H. (2019). Performance measurement using development ladder assessment and health indicators: Study of cooperatives. Journal of Accounting Research, Organization and Economics, 2(1), 20–30. https://doi.org/10.24815/jaroe.v2i1.11860

Kairu, E. W., Wafula, M. O., Okaka, O., Odera, O., & Kayode, E. (2013). Effects of balanced scorecard on performance of firms in the service sector. European Journal of Business and Management, 5(9), 81–89.

Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measures that drive performance. Harvard Business Review, 79.

Mardalis. (2008). Metode penelitian suatu pendekatan proposal. Jakarta: Bumi Aksara.

Saharuddin, D. (2015). Pembayaran ganti rugi pada asuransi syariah. Jakarta: Prenada Media Group.

Sugiyono. (2017). Metode penelitian kuantitatif, kualitatif, dan R&D. Bandung: Penerbit Alfabeta.

Syam Bz, F., Iskandarsyah, & Afrianandra, C. (2018). Pelatihan akuntansi dan penyusunan laporan keuangan bagi manajer dan staf keuangan koperasi usaha penanaman dan pengolahan kopi di kabupeten aceh tengah dan bener meriah. Jurnal Terapan Abdimas, 3(116). https://doi.org/10.25273/jta.v3i2.2801

Szóka, K. (2012). The Significance of the balanced scorecard financial perspective - presented through the example of the AMOENA medical devices trade and provider Ltd. Journal of International Studies, 5(1), 84–94.

Umar, H. (2000). Research methods in finance and banking. Jakarta: PT Gramedia Pustaka Utama.




DOI: https://doi.org/10.24815/jaroe.v3i3.16926

Article Metrics

Abstract view : 0 times
PDF - 0 times

Refbacks

  • There are currently no refbacks.


Published by:

Accounting Department
Economics and Business Faculty
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
E-ISSN: 2621-1041

 

Creative Commons License
Journal of Accounting Research, Organization and Economics by Accounting Department of Economics and Business Faculty of Syiah Kuala University is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.unsyiah.ac.id/JAROE/index.