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A Hybrid Clustering Method Using Balanced Scorecard and Data Envelopment Analysis

Author

Listed:
  • Heris Golpira

    (Department of Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran)

Abstract

This paper introduces a new hybrid clustering method using Data Envelopment Analysis (DEA) and Balanced Scorecard (BSC) methods. DEA cannot identify its’ input and output itself, and it is a major weakness of the DEA. In the proposed method, this gap is resolved by integrating DEA with BSC. Some decision-making units (DMUs) needed in DEA method, in compliance with some inputs and outputs is the major drawback of this integration. To deal with this disadvantage, the proposed method selects the most important strategic factors, attained from the BSC method. These data considered to be the input data for the DEA method to calculate relative closeness (RC) of each DMU to the ideal one. Plotting the screen diagram regarding RC index leads us to the final clustering method. Finally, computational results show the applicability and usefulness of the method.

Suggested Citation

  • Heris Golpira, 2016. "A Hybrid Clustering Method Using Balanced Scorecard and Data Envelopment Analysis," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 2(1), pages 15-22, April 10..
    • Handle: RePEc:mgs:ijoied:v:2:y:2016:i:1:p:15-22
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    References listed on IDEAS

    as
    1. Amado, Carla A.F. & Santos, Sérgio P. & Marques, Pedro M., 2012. "Integrating the Data Envelopment Analysis and the Balanced Scorecard approaches for enhanced performance assessment," Omega, Elsevier, vol. 40(3), pages 390-403.
    2. Thanassoulis, E., 1996. "A data envelopment analysis approach to clustering operating units for resource allocation purposes," Omega, Elsevier, vol. 24(4), pages 463-476, August.
    3. Entani, Tomoe & Maeda, Yutaka & Tanaka, Hideo, 2002. "Dual models of interval DEA and its extension to interval data," European Journal of Operational Research, Elsevier, vol. 136(1), pages 32-45, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Balanced Scorecard; Data Envelopment Analysis; Ranking method; Clustering;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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