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Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC

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  • Behrooz Noori

    (Department of Industrial Engineering, West Tehran Branch, Islamic Azad University, Tehran, Iran)

Abstract

Large corporations may be composed of multiple strategic business units (SBUs), each of which is responsible for its own profitability. Innovation performance management of SBUs boosts corporation business results. In the present work, SBU ranking based on innovation performance was addressed. The contribution of the proposed model was threefold: (1) it proposed a fuzzy analytic hierarchy process (AHP) for SBU ranking with triangular fuzzy numbers; (2) it provided a comprehensive and systematic framework that combined balanced scorecard (BSC) and fuzzy AHP; and (3) it explored practical application and illustrated the efficacy of the procedures and algorithms. It used a real-world case study in a large steel manufacturing company to present the applicability of the system. Finding SBU priorities would help the corporations to develop strategies and policies to manage and improve SBU performance.

Suggested Citation

  • Behrooz Noori, 2015. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(1), pages 36-56, February.
    • Handle: RePEc:sek:jijobm:v:3:y:2015:i:1:p:36-56
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    References listed on IDEAS

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    4. Yu-Cheng Tang & Malcolm J. Beynon, 2005. "Application and Development of a Fuzzy Analytic Hierarchy Process within a Capital Investment Study," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 1(2), pages 207-230, July.
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    Cited by:

    1. Varmazyar, Mohsen & Dehghanbaghi, Maryam & Afkhami, Mehdi, 2016. "A novel hybrid MCDM model for performance evaluation of research and technology organizations based on BSC approach," Evaluation and Program Planning, Elsevier, vol. 58(C), pages 125-140.
    2. Chieh-Yu Lin & Fu-Chiang Shih & Yi-Hui Ho, 2023. "Applying the Balanced Scorecard to Build Service Performance Measurements of Medical Institutions: An AHP-DEMATEL Approach," IJERPH, MDPI, vol. 20(2), pages 1-17, January.
    3. Dinçer, Hasan & Hacıoğlu, Ümit & Yüksel, Serhat, 2017. "Balanced scorecard based performance measurement of European airlines using a hybrid multicriteria decision making approach under the fuzzy environment," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 17-33.

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    More about this item

    Keywords

    strategic business unit; innovation performance; SBU performance; balanced scorecard; fuzzy analytic hierarchy process; steel sector;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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