Measuring the Performance of Retailer Firms Listed in BIST under the Balanced Scorecard Perspective by Using Interval Valued Pythagorean Fuzzy AHP Based Pythagorean Fuzzy TODIM Methodology
Namık Kemal Erdoğan, Ph.D.
Ahmet Onay, Ph.D.
Çağlar Karamaşa, Ph.D.
The philosophy behind the Balanced Scorecard is the necessity for an operator to transform non-financial criteria into data sources for the management information system, as well as financial criteria for all governance levels. The Balanced Scorecard introduces solutions to the problems that arise from the failures encountered in strategic management and the inadequacy of traditional performance management systems that lag behind the information age in today's intensely competitive environment, which is pushing businesses more and more. In this study the performance of 12 retailer firms listed in BIST are measured under the balanced scorecard (BSC) perspective by handling 4 main criteria (financial, customer, internal business process and learning & growth perspectives). Pythagorean fuzzy sets (PFS) are considered in order to better represent experts’ judgments under inconsistent and indeterminate environment. Following that TODIM methodology, that analyzes decision makers’ psychological behaviors under risk, is used to rank the firms. While economic loyalty sub criterion was found as the most important one, participation in management was acquired as the least important one after applying interval valued Pythagorean fuzzy AHP. Finally, Firm F was ranked as the most successful firm according to decision makers under balanced scorecard performance criteria.
Keywords: Balanced Scorecard, Pythagorean Fuzzy AHP, Pythagorean Fuzzy Sets, Pythagorean Fuzzy TODIM
Jel Classification: C63
Karamaşa, Ç. (2019). Measuring the Performance of Retailer Firms Listed in BIST under the Balanced Scorecard Perspective by Using Interval Valued Pythagorean Fuzzy AHP Based Pythagorean Fuzzy TODIM Methodology. Alphanumeric Journal, 7(2), 333-350. http://dx.doi.org/10.17093/alphanumeric.451247
- Anderson, E. W., ve Sullivan, M. W. (1994) “The Antecedents and Consequences of Customer Satisfaction for Firms” Marketing Science, 12(2), 125-143.
- Baynal, K., ve Karasakal, O. (2008) “İşletmelerde Performans Ölçümlerinin Balanced Scorecard ile Değerlendirilmesi ve Bir Uygulama” 28. Yöneylem Araştırması ve Endüstri Mühendisliği, İstanbul, Galatasaray Üniversitesi.
- Bromwich, M. ve Bhimani, A. (1989) Management accounting: Evolution not revolution. London: CIMA, UK.
- Calabro, L. (2001) “On Balance” The Magazine for Senior Financial Executives, February, 73-76.
- Davis, T. R. V. (1996) “Developing an Employee Balanced Scorecard: Linking Frontline Performance to Corporate Objectives” Management Decision, 34(4), 14-18.
- Dilanthi, A., David, B. ve Marjan, S. (2000). “Assessment of facilities management performance - what next?” Facilities, 18(1/2), 66-75.
- Gentia (1998) Automating the Balanced Scorecard: Maximizing Corporate Performance Through Successful Enterprise-Wide Deployment. A Gentia Software, White Paper.
- Giannopoulos, G., Holt, A., Khansalar, E. ve Cleanthous, S. (2013) “The Use of the Balanced Scorecard in Small Companies” International Journal of Business and Management, 8(14), 1-22.
- Gomes, L. F.A.M. & Lima, M. (1992) “TODIM: basics and application to multicriteria ranking of projects with environmental impacts” Foundations of Computing and Decision Sciences, 16, 113-127.
- Gomes, L.F.A.M. & Rangel, L.A.D. (2009) “An application of the TODIM method to the multicriteria rental evaluation of residential properties” European Journal of Operational Research, 193, 204-211.
- Gooijer, J. (2000) “Designing a knowledge management performance framework” Journal of Knowledge Management, 4(4), 303-310.
- Grady, M. W. (1991) “Performance measurement: implementing strategy” Management Accounting, June, 49-53.
- Güner, M. F. (2008) “Bir Stratejik Yönetim Modeli Olarak Balanced Scorecard” Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 10(1), 247-265.
- Hoque, Z. (2014) “20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research” The British Accounting Review, 46, 33-59.
- İlbahar, E., Karaşan, A., Çebi, S. & Kahraman, C. (2018) “A novel approach to risk assessment for occupational health and safety using Pythagorean fuzzy AHP & fuzzy inference system” Safety Science, 103, 124-136.
- Johnson, H. T. ve Kaplan, R. S. (1987) Relevance lost, the rise and fall of management accounting. Boston, MA: Harvard Business School Press.
- Kahneman, D. & Tversky, A. (1979) “Prospect theory: An analysis of decision under risk” Econometrica, 47, 263-292.
- Kaplan, R. S. ve Norton, D. P. (1992) “The balanced scorecard – measures that drive performance” Harvard Business Review, 70 (1), 71–79.
- Kaplan, R. S. ve Norton, D. P. (1993) “Putting the balanced scorecard to work” Harvard Business Review, September-October, 134-147.
- Kaplan, R. S. ve Norton, D. P. (1996) The balanced scorecard: Translating strategy into action. Boston, MA: Harvard Business School Press.
- Kaplan, R. S. ve Norton, D. P. (2001) The strategic focused organization: How balanced scorecard companies thrive in the new business environment. Boston, MA: Harvard Business School Press.
- Kaplan, R. S. ve Norton, D. P. (2004) Strategy maps: Converting intangible assets into tangible outcomes. Boston, MA: Harvard Business School Press.
- Kaplan, R. S. ve Norton, D. P. (2006) Alignment: Using the balanced scorecard to create corporate synergies. Boston, MA: Harvard Business School Press.
- Kaplan, R. S. ve Norton, D. P. (2008a) “Mastering the management system” Harvard Business Review, 86(1), 62-77.
- Kaplan, R. S. ve Norton, D. P. (2008b) The execution premium: Linking strategy to operations for competitive advantage. Boston, MA: Harvard Business School Press.
- Lopes, J. L. R. (1996) “Corporate Real Estate Management Features” Facilities Journal, 14(7-8), 6-11.
- Lynch, R. L. ve Cross, K. F. (1991) Measure up! London: Blackwell.
- McNair, C. J., Lynch, R. L. ve Cross, K. F. (1990) “Do financial and nonfinancial performance measures have to agree?” Management Accounting, November, 28-36.
- Nørreklit, H. (2000) “The balance on the balanced scorecard: a critical analysis of some of its assumptions” Management Accounting Research, 11(1), 65-88.
- Nørreklit, H. (2003) “The balanced scorecard: what is the score? A rhetorical analysis of the balanced scorecard” Accounting, Organizations and Society, 28(6), 591-619.
- Ölçer, F. (2005) “Dengeli Stratejik Performans Ölçüm ve Yönetim Sisteminin (Balanced Scorecard) Tasarımı ve Uygulanması” Amme İdaresi Dergisi, 38(2), 89-134.
- Ren, P., Xu, Z. & Gou, X. (2016) “Pythagorean fuzzy TODIM approach to multi-criteria decision making” Applied Soft Computing, 42, 246-259.
- Pineno, C. J. (2002) “The balanced scorecard: An incremental approach model to health care management” Journal of Health Care Management, Summer, 45-58.
- Ritter, M. (2003) “The use of balanced scorecard in the strategic management of corporate communication” Corporate Communications: An International Journal, 8(1), 44-59.
- Storey, A. (2002) “Performance Management in Schools: could the Balanced Scorecard help?” School Leadership and Management, 22(3), 321-338.
- Yager, R.R. (2013) “Pythagorean fuzzy subsets” Joint IFSA World Congress and NAFIPS Annual Meeting, Edmonton, Canada, 57-61.
Volume 7, Issue 2, 2019
Received: Aug. 6, 2018
Accepted: Oct. 25, 2019
Published: Dec. 31, 2019
Full Text [1.1 MB]
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence, which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
scan QR code to access this article from your mobile device