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

Abstract

Purpose

The 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/approach

After 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.

Findings

The 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/value

The 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.

Citation

Abedian, M., Amindoust, A., Jouzdani, J. and Hejazi, M. (2022), "Development of balanced scorecard for manufacturing using interpretive structural modeling and game theory", Journal of Advances in Management Research, Vol. 19 No. 4, pp. 604-623. https://doi.org/10.1108/JAMR-08-2021-0293