Abstract
The philosophy behind the Balanced Scorecard is the necessity for an operator to transform non-financial criteria into data sources for the management information system, as well as financial criteria for all governance levels. The Balanced Scorecard introduces solutions to the problems that arise from the failures encountered in strategic management and the inadequacy of traditional performance management systems that lag behind the information age in today's intensely competitive environment, which is pushing businesses more and more. In this study, the performance of 12 retailer firms listed in BIST are measured under the balanced scorecard (BSC) perspective by handling 4 main criteria (financial, customer, internal business process and learning & growth perspectives). Pythagorean fuzzy sets (PFS) are considered in order to better represent experts judgments under inconsistent and indeterminate environment. Following that TODIM methodology, that analyzes decision makers’ psychological behaviors under risk, is used to rank the firms. While economic loyalty sub-criterion was found as the most important one, participation in management was acquired as the least important one after applying interval-valued Pythagorean fuzzy AHP. Finally, Firm F was ranked as the most successful firm according to decision makers under balanced scorecard performance criteria.
Highlights
As the Fourth Industrial Revolution experienced today, there are radical changes in the business world as well as in all areas of life
Providing a framework in which the vision, mission and strategy of the business are transformed into performance measures covering non-financial issues, Balanced Scorecard (BSC) aims to solve the problems experienced in performance evaluation (Güner, 2008, p.250)
The Balanced Scorecard method makes strategies more expressible and directing the whole of the business in this direction ensures that business units align their objectives with the strategy and reconciliation of strategies to long-term plans and budgets
Summary
As the Fourth Industrial Revolution experienced today, there are radical changes in the business world as well as in all areas of life. Providing a framework in which the vision, mission and strategy of the business are transformed into performance measures covering non-financial issues, BSC aims to solve the problems experienced in performance evaluation (Güner, 2008, p.250). Prior to Kaplan and Norton, academics criticized measures that encouraged managers to focus on short-term financial performance that ignores long-term expectations (for example, Bromwich & amp; Bhimani, 1989; McNair et al, 1990). These and many other academics (such as Lynch & Cross, 1991) have suggested that in addition to financial measures of performance, non-financial measures such as ontime delivery, reduced process costs, quality and cycle times will benefit the long run. Grady (1991) emphasized that an operator's strategic objectives should be associated with critical success factors and critical actions
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