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An ANP-Balanced Scorecard Methodology to Quantify the Impact of TQM Elements on Organisational Strategic Sustainable Development: Application to an Oil Firm

Author

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  • Carla Andrade Arteaga

    (Doctorate School, Universidad de Guayaquil, Guayaquil 090613, Ecuador
    Doctorate School, Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

  • Raúl Rodríguez-Rodríguez

    (Research Centre on Production Management and Engineering (CIGIP), Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

  • Juan-José Alfaro-Saiz

    (Research Centre on Production Management and Engineering (CIGIP), Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

  • María-José Verdecho

    (Research Centre on Production Management and Engineering (CIGIP), Universitat Politècnica de València, Camino de Vera s/n, 46022 Valencia, Spain)

Abstract

This paper presents a methodology for quantifying the impact of Total Quality Management TQM elements on organisational strategic sustainable development, integrating within it the well-known strategic management tool of Balanced Scorecard to represent the strategic part of the organisations, and the multi-criteria technique Analytic Network Process (ANP) to identify and quantify the mentioned impact. Additionally, the application of TQM generates directly some organisational improvements—or outputs—which help model a decisional ANP network constituted by all three building blocks—TQM elements, strategic objectives and outputs—and their interrelationships. The application of the methodology to an oil firm carried out by an expert group offered, from a decision-making point of view, meaningful results that were developed following three different analyses: Global analysis, which identified the global weight of each variable; Analysis of Influences, which established sound cause–effect relationships between the variables to identify the elements—TQM and outputs—that are more important to achieve the strategic objectives; and the Integrated analysis, which pointed out which TQM elements should be fostered in order to achieve the most important sustainable strategic objectives. Finally, it is suggested to apply the methodology to other types of size and sector activity organisations, as well as to use other techniques that introduce fuzzy elements.

Suggested Citation

  • Carla Andrade Arteaga & Raúl Rodríguez-Rodríguez & Juan-José Alfaro-Saiz & María-José Verdecho, 2020. "An ANP-Balanced Scorecard Methodology to Quantify the Impact of TQM Elements on Organisational Strategic Sustainable Development: Application to an Oil Firm," Sustainability, MDPI, vol. 12(15), pages 1-19, August.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6207-:d:393230
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    References listed on IDEAS

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    Cited by:

    1. Boyao Zhang & Ubaldo Comite & Ali Gokhan Yucel & Xintao Liu & Mohammed Arshad Khan & Shahid Husain & Muhammad Safdar Sial & József Popp & Judit Oláh, 2021. "Unleashing the Importance of TQM and Knowledge Management for Organizational Sustainability in the Age of Circular Economy," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    2. Tahseen AL-Saadi & Alexey Cherepovitsyn & Tatyana Semenova, 2022. "Iraq Oil Industry Infrastructure Development in the Conditions of the Global Economy Turbulence," Energies, MDPI, vol. 15(17), pages 1-29, August.

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