Integration between the Balanced Scorecard and Total Quality Management and its role in improving financial performance (A field study on Libyan airlines)

Abstract

This study aimed to identify the role of integrating the Balanced Scorecard with Total Quality Management in improving the financial performance of Libyan airlines. To achieve this, the study adopted a descriptive-analytical approach and utilized a questionnaire to collect data from employees in the finance, audit, quality, and human resources departments of Libyan airlines based in Benghazi. A total of 133 questionnaires were deemed valid for analysis, The results indicated high levels of implementation for the Balanced Scorecard and Total Quality Management, as well as a high level of financial performance improvement. Multiple linear regression analysis revealed a statistically significant impact of the Balanced Scorecard and Total Quality Management on improving financial performance; the correlation coefficient (R) was 0.716 and the coefficient of determination (R²), was 0.513, indicating that the two independent variables explain approximately 51.3% of the variation in financial performance improvement. Furthermore, the results showed that Total Quality Management had the greatest impact, while the Balanced Scorecard also demonstrated a statistically significant effect.