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Modeling cause and effect relationships of strategy map using fuzzy DEMATEL and fourth generation of balanced scorecard

Changiz Valmohammadi (Department of Industrial Management, South Tehran Branch - Islamic Azad University, Tehran, Iran)
Javad Sofiyabadi (Islamic Azad University - Firoozkhoh Branch, Tehran, Iran)

Benchmarking: An International Journal

ISSN: 1463-5771

Article publication date: 3 August 2015

1637

Abstract

Purpose

The purpose of this paper is to develop the strategy map (SM) of an Iranian automotive industry and the causal and effects relations of the SM’s variables though fourth generation of balanced scorecard (BSC) and fuzzy DEMATEL (decision-making trial and evaluation laboratory) technique.

Design/methodology/approach

This research has employed a fuzzy DEMATEL approach in order to find cause and effect relations. At first step, CSFs in Company A’s SM were determined. Then four experts’ views of Company A’s strategic planning department were gathered and calculated by fuzzy set theory.

Findings

Results showed the important role of customer perspective in supporting and achieving the organization’s vision which ultimately will lead to fulfillment of the financial objective of the company through satisfied customers. In other words, the dominant approach to logic of SM design in Company A and the obtained results from this research indicate, Company A can achieve strategic result with a more prominent role of customer and financial perspective, through employing the enabler perspective, i.e. learning and growth perspective.

Research limitations/implications

Current study is limited to Iranian automotive industry. So, the strategic planning managers and future researchers shall consider their own company’s strategic structures for developing their SM.

Originality/value

To the best of knowledge of the authors, it is the first attempt, particularly in the context of Iran, aimed at using fourth generation of BSC and fuzzy DEMATEL technique in an automotive industry which led to the confirmation that these two approaches can jointly be employed for the identifying cause and effect relations in SM and clarification and easy understanding of it. This proposed research structure can be a suitable base for the development of SM in other companies.

Keywords

Citation

Valmohammadi, C. and Sofiyabadi, J. (2015), "Modeling cause and effect relationships of strategy map using fuzzy DEMATEL and fourth generation of balanced scorecard", Benchmarking: An International Journal, Vol. 22 No. 6, pp. 1175-1191. https://doi.org/10.1108/BIJ-09-2014-0086

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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