IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i4p486-d93960.html
   My bibliography  Save this article

Integrating Analytic Hierarchy Process (AHP) and Balanced Scorecard (BSC) Framework for Sustainable Business in a Software Factory in the Financial Sector

Author

Listed:
  • César Álvarez Pérez

    (Department of Project Engineering, University of Oviedo, C/Independencia 3, 33004 Oviedo, Spain)

  • Vicente Rodríguez Montequín

    (Department of Project Engineering, University of Oviedo, C/Independencia 3, 33004 Oviedo, Spain)

  • Francisco Ortega Fernández

    (Department of Project Engineering, University of Oviedo, C/Independencia 3, 33004 Oviedo, Spain)

  • Joaquín Villanueva Balsera

    (Department of Project Engineering, University of Oviedo, C/Independencia 3, 33004 Oviedo, Spain)

Abstract

A balanced scorecard (BSC) framework for a factory that develops software for banking was proposed by us at the end of 2015 to ensure its sustainability, and was focused on improving its productivity and cost. Based on this framework, the aim of this study is to construct an approach using the analytic hierarchy process (AHP) and BSC for evaluating a factory’s performance in order for it to become a sustainable business. In this study, AHP is proposed to prioritise and determine weights for the perspectives and indicators included in the BSC for a financial software factory (FSF). The combination of these weights with different indicator measures produces a model that provides an effective assessment tool for FSF managers. The results of the study, which are shown both globally and disaggregated according to the different roles of FSF stakeholders, show that user satisfaction is the main pillar for making decisions. In addition, the result considering roles shows differences according to the relationship of each stakeholder with the software factory. The current study has been validated in a Spanish factory that develops software for several financial entities.

Suggested Citation

  • César Álvarez Pérez & Vicente Rodríguez Montequín & Francisco Ortega Fernández & Joaquín Villanueva Balsera, 2017. "Integrating Analytic Hierarchy Process (AHP) and Balanced Scorecard (BSC) Framework for Sustainable Business in a Software Factory in the Financial Sector," Sustainability, MDPI, vol. 9(4), pages 1-16, March.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:4:p:486-:d:93960
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/4/486/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/4/486/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bentes, Alexandre Veronese & Carneiro, Jorge & da Silva, Jorge Ferreira & Kimura, Herbert, 2012. "Multidimensional assessment of organizational performance: Integrating BSC and AHP," Journal of Business Research, Elsevier, vol. 65(12), pages 1790-1799.
    2. Fabio De Felice & Antonella Petrillo & Claudio Autorino, 2015. "Development of a Framework for Sustainable Outsourcing: Analytic Balanced Scorecard Method (A-BSC)," Sustainability, MDPI, vol. 7(7), pages 1-21, June.
    3. MALLERET, Veronique & BOURGUIGNON, Annick & NORREKLIT, Hanne, 2001. "Balanced scorecard versus French tableau de bord:beyond dispute, a cultural and ideological perspective," HEC Research Papers Series 724, HEC Paris.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luis Armando Guananga & Rocío Poveda-Bautista & Mónica García-Melón, 2023. "Management Indicators for the Organisational Sustainability of Associative Productive Ventures," Sustainability, MDPI, vol. 15(23), pages 1, November.
    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. Jau-Yang Liu, 2018. "An Internal Control System that Includes Corporate Social Responsibility for Social Sustainability in the New Era," Sustainability, MDPI, vol. 10(10), pages 1-27, September.
    4. Mohannad Ahmed Almomoni & We’am Aref Alkhalayleh, 2021. "The Usage of Balanced Scorecard (BSC) in Evaluating the Performance of the University of Jordan/Aqaba Branch from the Academic Staff Perspective," Journal of Social Sciences (COES&RJ-JSS), , vol. 10(2), pages 232-247, April.
    5. Elena Fleacă & Bogdan Fleacă & Sanda Maiduc, 2018. "Aligning Strategy with Sustainable Development Goals (SDGs): Process Scoping Diagram for Entrepreneurial Higher Education Institutions (HEIs)," Sustainability, MDPI, vol. 10(4), pages 1-17, March.
    6. Beata Zyznarska-Dworczak, 2018. "The Development Perspectives of Sustainable Management Accounting in Central and Eastern European Countries," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    7. Vicente Rodríguez Montequín & Joaquín Manuel Villanueva Balsera & Marina Díaz Piloñeta & César Álvarez Pérez, 2020. "A Bradley-Terry Model-Based Approach to Prioritize the Balance Scorecard Driving Factors: The Case Study of a Financial Software Factory," Mathematics, MDPI, vol. 8(2), pages 1-15, February.
    8. Munjae Lee & Sewon Park & Kyu-Sung Lee, 2019. "What Are the Features of Successful Medical Device Start-Ups? Evidence from KOREA," Sustainability, MDPI, vol. 11(7), pages 1-17, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chih-Chao Chung & Li-Chung Chao & Chih-Hong Chen & Shi-Jer Lou, 2016. "A Balanced Scorecard of Sustainable Management in the Taiwanese Bicycle Industry: Development of Performance Indicators and Importance Analysis," Sustainability, MDPI, vol. 8(6), pages 1-21, May.
    2. Mendoza, Xavier & Carneiro, Jorge, 2012. "Introduction to the special issue of best papers Business Association of Latin American Studies 2010," Journal of Business Research, Elsevier, vol. 65(12), pages 1749-1751.
    3. Abbas Keramati & Fatemeh Shapouri, 2016. "Multidimensional appraisal of customer relationship management: integrating balanced scorecard and multi criteria decision making approaches," Information Systems and e-Business Management, Springer, vol. 14(2), pages 217-251, May.
    4. Mehdi Salimi & Mahboubeh Khodaparast, 2019. "Providing a combined model of fuzzy AHP and numerical taxonomy analysis for sport organizational ranking and performance appraisal," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(5), pages 1133-1144, October.
    5. Rui Guo & Zhenyong Wu, 2023. "Social sustainable supply chain performance assessment using hybrid fuzzy-AHP–DEMATEL–VIKOR: a case study in manufacturing enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12273-12301, November.
    6. Satheeskumar Navaratnam, 2022. "Selecting a Suitable Sustainable Construction Method for Australian High-Rise Building: A Multi-Criteria Analysis," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    7. Assunta Di Vaio & Luisa Varriale, 2018. "Management Innovation for Environmental Sustainability in Seaports: Managerial Accounting Instruments and Training for Competitive Green Ports beyond the Regulations," Sustainability, MDPI, vol. 10(3), pages 1-35, March.
    8. Rossi, Cesare & Cricelli, Livio & Grimaldi, Michele & Greco, Marco, 2016. "The strategic assessment of intellectual capital assets: An application within Terradue Srl," Journal of Business Research, Elsevier, vol. 69(5), pages 1598-1603.
    9. Kwang O. Park & Hwalsik Chang & Dae Hyun Jung, 2017. "How Do Power Type and Partnership Quality Affect Supply Chain Management Performance?," Sustainability, MDPI, vol. 9(1), pages 1-16, January.
    10. Alkinoos Psarras & Theodoros Anagnostopoulos & Nikos Tsotsolas & Ioannis Salmon & Lazaros Vryzidis, 2020. "Applying the Balanced Scorecard and Predictive Analytics in the Administration of a European Funding Program," Administrative Sciences, MDPI, vol. 10(4), pages 1-15, December.
    11. Byungjoo Paek & Joohyun Kim & Joonyoung Park & Heesang Lee, 2019. "Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms," Sustainability, MDPI, vol. 11(17), pages 1-28, August.
    12. Sung-Ho Kil & Dong Kun Lee & Jun-Hyun Kim & Ming-Han Li & Galen Newman, 2016. "Utilizing the Analytic Hierarchy Process to Establish Weighted Values for Evaluating the Stability of Slope Revegetation based on Hydroseeding Applications in South Korea," Sustainability, MDPI, vol. 8(1), pages 1-17, January.
    13. S. Vijayakumar Bharathi, 2017. "Prioritizing and Ranking the Big Data Information Security Risk Spectrum," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(3), pages 183-201, September.
    14. Aleksander Janeš & Armand Faganel, 2020. "Complementary Methods for Effective Decision Making," MIC 2020: The 20th Management International Conference,, University of Primorska Press.
    15. Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.
    16. Behrooz Noori, 2014. "Prioritizing strategic business units in the face of innovation performance: Combining fuzzy AHP and BSC," Proceedings of International Academic Conferences 0802059, International Institute of Social and Economic Sciences.
    17. Fabio De Felice & Antonella Petrillo & Claudio Autorino, 2015. "Development of a Framework for Sustainable Outsourcing: Analytic Balanced Scorecard Method (A-BSC)," Sustainability, MDPI, vol. 7(7), pages 1-21, June.
    18. Dias, Cleidson Nogueira & Hoffmann, Valmir Emil & Martínez-Fernández, María Teresa, 2021. "Condiciones de las redes interorganizativas para la innovación en áreas rurales," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 21(01), June.
    19. César Álvarez Pérez & Vicente Rodríguez Montequín & Francisco Ortega Fernández & Joaquín Villanueva Balsera, 2017. "Integration of Balanced Scorecard (BSC), Strategy Map, and Fuzzy Analytic Hierarchy Process (FAHP) for a Sustainability Business Framework: A Case Study of a Spanish Software Factory in the Financial ," Sustainability, MDPI, vol. 9(4), pages 1-23, March.
    20. Ibrahim Garba Muhammad & Ibrahim Garba Muhammad & Haim Hilman Abdullah, 2016. "Assessment of Organizational Performance: Linking the Motivational Antecedents of Empowerment, Compensation and Organizational Commitment," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 974-983.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:4:p:486-:d:93960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.