A Combination of Balanced Scorecard, System Dynamics and Game Theory to Design Performance Measurement System

Articles in Press

Document Type : Research Paper

Authors

1 Shahryar Branch, Islamic Azad University, Shahryar, Iran,

2 Concordia University

3 Australian Catholic University

4 Amirkabir University of Technology

Abstract

Performance evaluation in organizations is a widely debated topic, drawing on numerous methods for optimal insights. While existing methodologies offer depth, there's a growing need for an integrated framework to better understand the intricate dynamics of relevant factors. This paper proposes a novel approach by combining the Balanced Scorecard with system dynamics, facilitating the establishment of causal relationships among indices. By applying game theory, we cluster expert decisions into coalitions, deriving a holistic performance assessment. To test the effectiveness of this innovative method, we conducted a real-world application study on "Bank Melli," Iran's premier bank. Engaging a panel of experts, we gathered data on key indices, causal relationships, scenario construction, and game theoretic analysis using both qualitative and quantitative questionnaires. The proposed method's efficacy is underscored by its validation through expert panels. Beyond offering a deeper comprehension of the nuanced influences on an organization's performance, our approach also introduces a scenario-building tool that opens avenues for exploring new managerial strategies.

Keywords

References

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Journal of Optimization and Supply Chain Management

Articles in Press, Accepted Manuscript
Available Online from 06 April 2025

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