A quantitative target-setting model using Monte Carlo simulation method: mapping in strategic management and balanced scorecard (BSC) context

Ostadi, Bakhtiar; Shahzileh, Zahra Honarmand; Gerami, Aboutaleb

doi:10.1080/00949655.2020.1777997

Cited by 4 publications

(5 citation statements)

References 30 publications

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“…In contrast to existing research (e.g. Capelo et al , 2012; Köppen et al , 2006 and Ostradi et al , 2020) that uses only the BSC framework and does not include other accounting models, we also include the TD-ABC as suggested by Kaplan (2008). In addition, we have also discussed the inclusion of other relevant ideas such as lean or Six Sigma.…”

Section: Discussionmentioning

confidence: 99%

“…In addition, Köppen et al (2006) use a MCMC simulation technique for the balanced scorecard indictors, and Ostradi et al (2020) focus on an extended Monte Carlo simulation that considers all the effects and possible interactions of the strategic process including the influences of strategic BSC objectives. The present paper differs from the above approaches by proposing an easy way of designing a stochastic BSC model with the focus on a few important response variables and the way in which they can be improved.…”

Section: Discussionmentioning

confidence: 99%

“…We found very few studies that were actually combining performance measurement, BSC with Monte Carlo simulation (e.g. Capelo et al , 2012; Köppen et al , 2006; Ostradi et al , 2020). A large number of research articles exist related separately to BA, the data-driven idea, big data or the general uncertainty built in for different issues (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…Köppen et al (2006) use the Markov chain Monte Carlo (MCMC) simulation of BSC for processes of planning, decision-making and controlling and suggest that the adaptation and modelling, respectively, of key figures as random variables in a BSC also enhance the information content and brings the BSC closer to reality. Finally, Ostradi et al (2020) focus on strategy maps where the simulation results provide the ability to consider all the effects and possible interactions of the strategic processes on the strategic objectives. In sum, these articles are based on single and general financial models and do not show or discuss the methods for improving the results of different simulation scenarios.…”

Section: Introductionmentioning

confidence: 99%

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Business analytics: an example of integration of TD-ABC and the balanced scorecard

Nielsen

2022

IJPPM

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PurposeThe purpose of this paper is twofold. First, to combine a holistic model – in our case the balanced scorecard – with the time-driven activity-based costing model. The inspiration for this stems both from Kaplan and Norton and from the intense discussions and use of business analytics (BA) and performance management (PM). Second, to use numerical experiments – more specifically Monte Carlo simulation – to design and explore four hypothetical scenarios within such a holistic model. The paper also aims to emphasise the role played by statistics in increasing the confidence in using such a framework.Design/methodology/approachThe author runs four numerical experiments using different assumptions to show how a decision-maker can improve the outcome by making small changes in the key performance indicator (KPI) input variables.FindingsThe paper gives recommendations for the assumptions that each decision-maker has to consider when setting out to conduct this kind of analysis. Small changes in some input variables may completely change the output and hence the decision result.Practical implicationsThe paper shows why practitioners and researchers need to better understand the limitations of deterministic analysis to make realistic models when combining more accounting models. To choose the relevant probability distributions for the input resources is an important issue for the decision-maker as they have a very large impact on the result.Originality/valueThe real value of the paper lies in making students and practitioners as well as researchers aware of the opportunities for stochastic modelling and also to point at the problems and limitations of combining elements from BA with performance measurement and management.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Business analytics: an example of integration of TD-ABC and the balanced scorecard

Nielsen

2022

IJPPM

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“…At the very heart of this process lies the important task of establishing objectives, both short-term and long-term, carefully tailored to steer the organization towards its envisioned destination. The efficacy of this initial step extends beyond mere goal creation; it hinges on the seamless integration of these objectives with the subsequent actions and decisions undertaken by the organization (Ostadi et al, 2020). Strategic management's journey begins with the crucial phase of goal-setting and meticulous planning.…”

Section: A) Target Settingmentioning

confidence: 99%

Internal Management Strategy of Chinese Internet Enterprises and Business Performance: A Study of Tencent Internet Enterprises in China

Yufeng,

Idrakisyah

2024

alexandria

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The objective of this research is to examine the relationship between the internal management strategy of Chinese internet enterprises and business performance. The research results in the fields of business models and innovations, internet business models and their innovation theories and practices, and business ethics are analyzed and discussed, while the internet development process of China is reviewed. Then, the existing problems are analyzed, and the concerned field and concepts in this study are clarified. Based on previous theoretical research and market research, the research methodology is designed, the research hypotheses are proposed, and the research models are constructed to perform quantitative and qualitative research. Next, the cases of Baidu, Alibaba and Tencent are engaged to conduct empirical analysis and verify the conclusions. The correlation analysis show that the impact on corporate financial performance is positive when social responsibility to shareholders, creditors, users, and government is undertaken, which is consistent with the original hypothesis. However, fulfilling social responsibility to employees and suppliers is significantly and negatively related to financial performance, which is inconsistent with the original hypothesis. Therefore, companies should take a long-term perspective and not just see short-term benefits at the expense of long-term social benefits. Companies pay attention to and carry out a series of social responsibility activities can establish stable emotional ties with the public, so that the company can gain the support and trust of many parties in society, and can enhance market competitiveness and bring good development opportunities, thus improving the viability of the company and increasing social and economic value for the company

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A methodology for strategy-oriented project portfolio selection taking dynamic synergy into considerations

Bai

2022

Alexandria Engineering Journal

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A quantitative target-setting model using Monte Carlo simulation method: mapping in strategic management and balanced scorecard (BSC) context

Cited by 4 publications

References 30 publications

Business analytics: an example of integration of TD-ABC and the balanced scorecard

Business analytics: an example of integration of TD-ABC and the balanced scorecard

Internal Management Strategy of Chinese Internet Enterprises and Business Performance: A Study of Tencent Internet Enterprises in China

A methodology for strategy-oriented project portfolio selection taking dynamic synergy into considerations

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