Development of balanced scorecard for manufacturing using interpretive structural modeling and game theory

Abstract

PurposeThe purpose of the study is to assess manufacturing firm performance indicators using a reasonably comprehensive integrated BSC-Game model to empirically determine the importance of the perspectives and indicators under evaluation and the best combination of indicators.Design/methodology/approachAfter identification of manufacturing indicators of the firm, the Shapley value index is used as the solution of the cooperative game to determine the importance of the perspectives and indicators under evaluation and the best combination of indicators to facilitate the achievement of target goals.FindingsThe game theory approach is used as a technique to rank BSC perspectives of the firm's manufacturing performance. The results reveal that the customers' perspective receives the highest ranking. The knowledge sharing, new technology, customer satisfaction and sale profitability are considered as the best combination of BSC indicators.Originality/valueThe integrated BSC-Game framework, approach and outcomes can be beneficial to practitioners and researchers who aim to select the proper indicators’ policy in manufacturing performance field.

Water and Sanitation Practices and performance of Bomet Water and Sanitation Company in Bomet County, Kenya

“…Another assumption of the theory is that the different perspectives are interconnected and mutually reinforcing (Herman, 2023). For example, improvements in customer satisfaction and loyalty can lead to increased sales and revenue, while efficient internal processes can enhance customer experience and reduce costs (Abedian, Amindoust, Madahi, & Jouzdani, 2021). This interconnectedness emphasizes the need for a balanced approach to performance measurement and management, where improvements in one perspective can positively impact others.…”

Exploring the Interconnectedness of Supply Chain Management Theories: A Literature Review

“…It is a way to measure how well an organization is doing by using both financial and non-financial indicators [12], [10]. It is set up around four perspectives, each with its own set of key performance indicators (KPIs): financial, customer, internal processes, and learning and development [1]. With the help of this strategy, companies can align their strategic goals, track their advancement, and develop a continuous improvement culture.…”

“…The BSC was initially developed to be used as a performance measurement method. Kaplan and Norton (1992) say that traditional financial metrics cannot be used to judge the performance of an organization because they need to consider critical non-financial factors that are important for long-term success [1], [12]. The BSC was made to get around these problems by combining different points of view to give a more fair picture of performance.…”