IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/0802059.html
   My bibliography  Save this paper

Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC

Author

Listed:
  • Behrooz Noori

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

Abstract

Large corporations may be composed of multiple strategic business units (SBUs), each of which is responsible for its own profitability. Innovation performance management of SBUs boosts corporation business results. In the present work, SBU ranking based on innovation performance was addressed. The contribution of the proposed model was threefold: (1) it proposed a fuzzy analytic hierarchy process (AHP) for SBU ranking with triangular fuzzy numbers; (2) it provided a comprehensive and systematic framework that combined balanced scorecard (BSC) and fuzzy AHP; and (3) it explored practical application and illustrated the efficacy of the procedures and algorithms. It used a real-world case study in a large steel manufacturing company to present the applicability of the system. Finding SBU priorities would help the corporations to develop strategies and policies to manage and improve SBU performance.

Suggested Citation

  • Behrooz Noori, 2014. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," Proceedings of International Academic Conferences 0802059, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:0802059
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/13th-international-academic-conference-antibes/table-of-content/detail?cid=8&iid=054&rid=2059
    File Function: First version, 2014
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chan, Felix T.S. & Kumar, Niraj, 2007. "Global supplier development considering risk factors using fuzzy extended AHP-based approach," Omega, Elsevier, vol. 35(4), pages 417-431, August.
    2. Lazzarotti, Valentina & Manzini, Raffaella & Mari, Luca, 2011. "A model for R&D performance measurement," International Journal of Production Economics, Elsevier, vol. 134(1), pages 212-223, November.
    3. Andrew H. Van de Ven, 1986. "Central Problems in the Management of Innovation," Management Science, INFORMS, vol. 32(5), pages 590-607, May.
    4. Bentes, Alexandre Veronese & Carneiro, Jorge & da Silva, Jorge Ferreira & Kimura, Herbert, 2012. "Multidimensional assessment of organizational performance: Integrating BSC and AHP," Journal of Business Research, Elsevier, vol. 65(12), pages 1790-1799.
    5. Sandstrom, Jaana & Toivanen, Jouko, 2002. "The problem of managing product development engineers: Can the balanced scorecard be an answer?," International Journal of Production Economics, Elsevier, vol. 78(1), pages 79-90, July.
    6. Yu-Cheng Tang & Malcolm J. Beynon, 2005. "Application and Development of a Fuzzy Analytic Hierarchy Process within a Capital Investment Study," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 1(2), pages 207-230, July.
    7. L C Leung & K C Lam & D Cao, 2006. "Implementing the balanced scorecard using the analytic hierarchy process & the analytic network process," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(6), pages 682-691, June.
    8. Grigoroudis, E. & Orfanoudaki, E. & Zopounidis, C., 2012. "Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard," Omega, Elsevier, vol. 40(1), pages 104-119, January.
    9. Chang, Da-Yong, 1996. "Applications of the extent analysis method on fuzzy AHP," European Journal of Operational Research, Elsevier, vol. 95(3), pages 649-655, December.
    10. Kahraman, Cengiz & Cebeci, Ufuk & Ruan, Da, 2004. "Multi-attribute comparison of catering service companies using fuzzy AHP: The case of Turkey," International Journal of Production Economics, Elsevier, vol. 87(2), pages 171-184, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Behrooz Noori, 2015. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(1), pages 36-56, February.
    2. Wang, Ying-Ming & Luo, Ying & Hua, Zhongsheng, 2008. "On the extent analysis method for fuzzy AHP and its applications," European Journal of Operational Research, Elsevier, vol. 186(2), pages 735-747, April.
    3. Dinçer, Hasan & Hacıoğlu, Ümit & Yüksel, Serhat, 2017. "Balanced scorecard based performance measurement of European airlines using a hybrid multicriteria decision making approach under the fuzzy environment," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 17-33.
    4. Wei-Ming Wang & Hsiao-Han Peng, 2020. "A Fuzzy Multi-Criteria Evaluation Framework for Urban Sustainable Development," Mathematics, MDPI, vol. 8(3), pages 1-22, March.
    5. Jui-Te Chiang & Chei-Chang Chiou & Shuh-Chyi Doong & I-Fang Chang, 2020. "Research on the Construction of Performance Indicators for the Marketing Alliance of Catering Industry and Credit Card Issuing Banks by Using the Balanced Scorecard and Fuzzy AHP," Sustainability, MDPI, vol. 12(21), pages 1-24, October.
    6. Heo, Eunnyeong & Kim, Jinsoo & Boo, Kyung-Jin, 2010. "Analysis of the assessment factors for renewable energy dissemination program evaluation using fuzzy AHP," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2214-2220, October.
    7. Chen-Hui Chou & Gin-Shuh Liang & Hung-Chung Chang, 2013. "A fuzzy AHP approach based on the concept of possibility extent," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(1), pages 1-14, January.
    8. Dušan M. Milošević & Mimica R. Milošević & Dušan J. Simjanović, 2020. "Implementation of Adjusted Fuzzy AHP Method in the Assessment for Reuse of Industrial Buildings," Mathematics, MDPI, vol. 8(10), pages 1-24, October.
    9. Lupo, Toni, 2015. "Fuzzy ServPerf model combined with ELECTRE III to comparatively evaluate service quality of international airports in Sicily," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 249-259.
    10. Wang, Xiaojun & Chan, Hing Kai & Li, Dong, 2015. "A case study of an integrated fuzzy methodology for green product development," European Journal of Operational Research, Elsevier, vol. 241(1), pages 212-223.
    11. Alev Taskin Gumus & A. Yesim Yayla & Erkan Çelik & Aytac Yildiz, 2013. "A Combined Fuzzy-AHP and Fuzzy-GRA Methodology for Hydrogen Energy Storage Method Selection in Turkey," Energies, MDPI, vol. 6(6), pages 1-16, June.
    12. Alkinoos Psarras & Theodoros Anagnostopoulos & Nikos Tsotsolas & Ioannis Salmon & Lazaros Vryzidis, 2020. "Applying the Balanced Scorecard and Predictive Analytics in the Administration of a European Funding Program," Administrative Sciences, MDPI, vol. 10(4), pages 1-15, December.
    13. Ping-Lung Huang & Bruce C.Y. Lee & Chen-Song Wang & Chi-Te Sun, 2017. "Relative Importance of the Factors under the ISO-10015 Quality Management Guidelines that Influence the Service Quality of Certification Bodies," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(1), pages 105-137, February.
    14. Rakan Alyamani & Suzanna Long, 2020. "The Application of Fuzzy Analytic Hierarchy Process in Sustainable Project Selection," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    15. Murat İnce & Tuncay Yiğit & Ali Hakan Işik, 2020. "A Novel Hybrid Fuzzy AHP-GA Method for Test Sheet Question Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 629-647, April.
    16. Yen-Cheng Chen & Tung-Han Yu & Pei-Ling Tsui & Ching-Sung Lee, 2014. "A fuzzy AHP approach to construct international hotel spa atmosphere evaluation model," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(2), pages 645-657, March.
    17. Youchao Tan & Yang Zhang & Roohollah Khodaverdi, 2017. "Service performance evaluation using data envelopment analysis and balance scorecard approach: an application to automotive industry," Annals of Operations Research, Springer, vol. 248(1), pages 449-470, January.
    18. Fanhui Zeng & Xiaozhao Cheng & Jianchun Guo & Liang Tao & Zhangxin Chen, 2017. "Hybridising Human Judgment, AHP, Grey Theory, and Fuzzy Expert Systems for Candidate Well Selection in Fractured Reservoirs," Energies, MDPI, vol. 10(4), pages 1-22, April.
    19. Babak Daneshvar Rouyendegh & Kazim Topuz & Ali Dag & Asil Oztekin, 2019. "An AHP-IFT Integrated Model for Performance Evaluation of E-Commerce Web Sites," Information Systems Frontiers, Springer, vol. 21(6), pages 1345-1355, December.
    20. Aleksander Janeš & Armand Faganel, 2020. "Complementary Methods for Effective Decision Making," MIC 2020: The 20th Management International Conference,, University of Primorska Press.

    More about this item

    Keywords

    strategic business unit; innovation performance; SBU performance; balanced scorecard; fuzzy analytic hierarchy process; steel sector;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:0802059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.