A Method of Performance Evaluation by Using the Analytic Network Process and Balanced Score Car

Abstract

Performance evaluation is an important part of the enterprises' strategic management. The analytic hierarchy process (AHP) can provide an analytical means to determine the importance of the identified factors. The AHP method assumes that the factors presented in the hierarchical structure are independent; however, this assumes that may be inappropriate in light of certain internal and external environment effects. Therefore, it is necessary to employ of analytic network Process (ANP) method. The traditional financial method cannot fully reflect the performance of enterprises, as a result of which the balanced scorecard (BSC) method was developed. However, BSC also some disadvantages. By giving power weights on indicators, ANP method can make up those disadvantages. The objective of this study is to construct an approach based on the ANP and balanced BSC for creating a method of enterprises' performance evaluation.