Abstract:
The study was carried out to investigate the empirical effect of a strategic management
system on sustainable development by using a balanced scorecard (BSC), as a theoretical lens,
and organizational performance, as an intervening variable. The study incorporated a positivism
research paradigm in order to address the objective nature of research. As the current study has an
empirical and impartial nature, a quantitative method was considered the best method for achieving
the research objectives of the study. The study used questionnaires as a data collection instrument.
In total, three hundred questionnaires were disturbed among Chinese power companies based
in Pakistan. A stratified-random sampling approach was adopted to reach relevant respondents.
Partial least squares-structural equation modeling was used for statistical analysis. BSC indicated a
positive influence on sustainable development. Additionally, organizational performance depicted
partial mediation between the strategic management system and sustainable development. The study
underpins the theoretical foundation of a resource-based view (RBV) and a balanced scorecard view
of the strategic management system. The findings suggest that non-financial measures have better
consequences for employees’ performance, making them ecologically responsive, unlike the financial
performance measures used previously. The study suggests taking measures related to wastage and
usage of inimitable resources that focus on in-addition rather traditional measures, which can allow
sustainable development.
