Affiliations: [a] Derby Business School, The University of Derby, Kedleston Rd, Derby DE22 1GB, UK
| [b] Department of Management Control and Information Systems, School of Economics and Business, University of Chile, Santiago, Chile and School of Information, Systems & Modelling, Faculty of Engineering and Information Technology, University of Technology Sydney, Ultimo, Australia
Correspondence:
[*]
Corresponding author. Jay Daniel, Derby Business School, The University of Derby, Kedleston Rd, Derby DE22 1GB, UK. E-mail: [email protected].
Abstract: The main motivation of this research is to develop an innovative multidimensional model through multi attribute decision making (MADM) methods for strategic plans selection process in the Balanced Scorecard (BSC). The current study adopted MADM analytical methods including AHP, ELECTRE, BORDA, TOPSIS and SAW to rank the initiatives / strategic plans in BSC. Then the results of those methods were compared against each other in order to find a robust model for selecting strategic plans. The correlation coefficient between methods indicated that multidimensional and ELECTRE methods with 0.944 are the best performing and AHP with negative correlation (–0.455) is the worst performing method for selecting strategic plans in BSC. The high correlation demonstrates that the model can be a useful and effective tool to finding the critical aspects of evaluation criteria as well as the gaps to improve company performance for achieving desired level. Developing multidimensional model is the core model for the selection of strategic plans. This study addresses the problem and issues of group decision making process for selecting strategic plans in BSC. It has numerous contributions that particularly includes; 1) Determination of the explicit criteria sub-criteria and criteria to improve ranking strategic plans in BSC, 2) Adopting MADM analytical methods including AHP, ELECTRE, BORDA, TOPSIS and SAW for the selection of strategic plans decision problem in BSC, 3) Developing multidimensional model to address the selection of strategic plans problems in BSC. The proposed model will provide an approach to facilitate strategic plans decision problem in BSC.
Keywords: Balanced scorecard model, MADM, group decision making, strategic
management
