Metachoice for benchmarking: a case study

2015 ◽  
Vol 22 (3) ◽  
pp. 338-353 ◽  
Author(s):  
Domenico Laise ◽  
Laura Marraro ◽  
Gianpaolo Iazzolino
Keyword(s):  
Balanced Scorecard ◽  
Business Performance ◽  
Balance Sheet ◽  
Evaluation Criteria ◽  
Multicriteria Analysis ◽  
Evaluation Process ◽  
Content Type ◽  
Benchmark Analysis ◽  
Practical Implications

Purpose – In a previous paper the authors emphasized the advantages of multicriteria methodologies to evaluate business performance. The purpose of this paper is to highlight the metachoice problem that always arises in a benchmark multicriteria analysis that can be synthesized as follows: “how to choose an algorithm to choose?” Design/methodology/approach – In order to perform a benchmark analysis, a set of criteria must be chosen. In the Balanced Scorecard approach, for example, key performance indicators (KPIs) are grouped in four different perspectives: financial, customer, internal processes and learning and growth. In this paper, the authors focus on multicriteria benchmark analysis applied to KPIs of the financial perspective. The paper considers a set of criteria used in financial statement analysis based on balance sheet, income statement and cash flow statement. A case study is described. Findings – The main findings of the paper are when the evaluation of a firm is based on different genuine criteria, a metachoice problem arises: multicriteria ranking algorithms cannot be selected using a multicriteria algorithm; the choice of an algorithm ultimately depends on the subjective preference of the policy maker; and the authors metachoice solution to the benchmarking problem is in accordance with Simon’s satisfacing solution, describing a non-maximizing performance measurement methodology. Practical implications – The paper provides several practical implications in all cases in which a ranking has to be assigned to a group of firms based on financial performances. More in general the problem is very relevant when a ranking has to be carried out with respect to a set of projects, a set of strategies, a set of organizational units, etc. Originality/value – The adoption of a set of criteria is certainly an advantage to avoid uni-criterial myopic evaluation. However, this also creates some methodological problems. The paper demonstrates the “relativity” (subjectivity) of results of the evaluation process when there are many evaluation criteria, as in a benchmark context. This is a metachoice problem that cannot be solved by using another multicriteria algorithm.

Intellectual capital in family firms: human capital identification and measurement

2015 ◽  
Vol 16 (1) ◽  
pp. 199-223 ◽  
Author(s):  
Enrique Claver-Cortés ◽  
Patrocinio Carmen Zaragoza-Sáez ◽  
Hipólito Molina-Manchón ◽  
Mercedes Úbeda-García
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Family Firms ◽  
Balance Sheet ◽  
Research Approach ◽  
Competitive Advantages ◽  
Content Type ◽  
Starting Point ◽  
Practical Implications

Purpose – Based on the literature devoted to family firms and the intellectual capital-based view of the firm, the purpose of this paper is not only to identify the most important human capital intangibles owned by family firms but also to show a number of indicators that can help measure them. Design/methodology/approach – A qualitative case-study-based research approach was adopted taking as reference: 25 family firms belonging to different sectors; previous works existing in the literature; and the intellectus model. Findings – The present study identifies ten intangibles associated with the human capital of family firms and shows 60 indicators that can be used to measure them. It additionally provides empirical evidence and gives examples of these intangibles through the analysis of 25 international family firms. Research limitations/implications – The difficulty in collecting all the human capital intangibles of family firms; the problems associated with the creation of accurate indicators; and those specific to the research methodology adopted. Practical implications – Identifying the human capital intangibles of family firms and their indicators can help managers become aware of their importance, and this will consequently help them improve their management. This could be an interesting starting point to value these intangibles in the balance sheet as well as to draw comparisons between family and non-family organisations. Originality/value – The framework provided by family firms sheds light on several intangibles specific to these firms – precisely for their condition as “family” firms. Those intangibles – human capital intangibles being especially highlighted in this study – provide the basis for the achievement of competitive advantages.

An integrated fuzzy SWARA and fuzzy AD approach for outsourcing provider selection

2019 ◽  
Vol 30 (2) ◽  
pp. 531-552 ◽  
Author(s):  
Selçuk Perçin
Keyword(s):  
Evaluation Criteria ◽  
Decision Makers ◽  
Ratio Analysis ◽  
Functional Requirements ◽  
Content Type ◽  
Practical Applications ◽  
Chemical Company ◽  
Order Preference ◽  
Practical Implications

Purpose Unlike previous literature, this study offers a novel integrated fuzzy approach to the field of outsourcing decisions. The purpose of this paper is to use design ranges of evaluation criteria that satisfy the functional requirements (FRs) of decision makers to solve the outsourcing provider selection problem. Design/methodology/approach In this study, considering the expected significance of outsourcing evaluation criteria, and the FRs of decision makers expressed in linguistic terms, a robust multi-criteria decision-making (MCDM) tool based on the integrated use of fuzzy Step-wise Weight Assessment Ratio Analysis and weighted fuzzy axiomatic design methods is proposed for use in decision process. Findings The proposed method is applied to a Turkish chemical company. A sensitivity analysis is performed and the outcomes of the proposed integrated framework are compared with those of other MCDM methods such as fuzzy-based Technique for Order Preference by Similarity to Ideal Solution, fuzzy Vise Kriterijumska Optimizacija I Kompromisno Resenje and fuzzy Multi-Objective Optimization on the basis of Ratio Analysis. This validates the usefulness and practicality of the proposed methodology. Practical implications The main contribution of this study is that it defines specific requirements that will assist company managers in eliminating alternatives that do not satisfy the needs and expectations of their company. Originality/value This paper compares the present study with other studies in the field of manufacturing. Additionally, it provides a well-documented case study, which makes the paper of value to researchers interested in the practical applications of MCDM methods.

Balanced scorecard and emerging strategies

2017 ◽  
Vol 33 (4) ◽  
pp. 25-27
Keyword(s):  
Balanced Scorecard ◽  
Good Deal ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Business Change ◽  
Complex Organization ◽  
Pertinent Information ◽  
Multiple Levels ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The article “Multi-level strategic alignment within a complex organisation” by Laurie et al. (2016) provides an in-depth look at how a large, complex organization was able to implement the balanced scorecard in multiple levels and phases. Such a case study can teach business change managers a good deal about the theoretical as well as the practical considerations of such an implementation, particularly in the context of the Middle East. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Industrial customers’ organizational readiness for new advanced services

2019 ◽  
Vol 30 (7) ◽  
pp. 1073-1096 ◽  
Author(s):  
Eija Vaittinen ◽  
Miia Martinsuo
Keyword(s):  
Evaluation Criteria ◽  
Manufacturing Firms ◽  
Related Services ◽  
Content Type ◽  
Service Adoption ◽  
Complex Products ◽  
Organization Level ◽  
Service Readiness ◽  
Practical Implications

Purpose Manufacturing firms delivering complex products and systems are increasingly offering advanced data-based services. Customers, however, are not always willing to adopt manufacturers’ advanced services, so manufacturers need knowledge of how to promote customers’ service readiness. The purpose of this paper is to further develop the concept of service readiness by proposing a framework for industrial customers’ organizational dimension of service readiness and by increasing the understanding of the conditions underpinning that service readiness. Design/methodology/approach This case study explores service readiness among customers of a manufacturer delivering complex systems and related services. Interviews were conducted within the company and among key customers as the potential users of those services. Findings Customers use versatile processes, engage multiple people and use different evaluation criteria when considering adoption of data-based services. The organizational component of service readiness involves requirements in the service context, supplier relations and organizational habits and culture. Actions are proposed for manufacturers to promote customers’ readiness for new services. Research limitations/implications The research is limited through its qualitative design and case selection. Mapping of the organizational dimension of service readiness further develops the concept of service readiness and offers a framework for further research. This research offers novel understanding of organization-level service adoption to complement individual-centric technology adoption. Practical implications New knowledge is offered to manufacturing firms about customers’ challenges and requirements in adopting advanced services. This knowledge will help manufacturers to support customers and develop the activities of their own salespeople when introducing advanced services. Originality/value The findings expose the contents of the organizational dimension of customers’ service readiness. The study provides a more complete picture of service readiness and shows it to be a multilayered concept with interdependencies between its levels, between individuals in customer organizations and even between the manufacturer and the customer organization.

The balanced scorecard for school management: case study of Thai public schools

2020 ◽  
Vol 24 (3) ◽  
pp. 285-300
Author(s):  
Nopadol Rompho
Keyword(s):  
Public Schools ◽  
Balanced Scorecard ◽  
Structural Equation ◽  
Generic Model ◽  
Statistical Tool ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Management Case Study ◽  
Practical Implications

Purpose This study aims to develop and empirically test the balanced scorecard for public schools in Thailand. Design/methodology/approach Data were obtained from 3,351 public schools in Thailand. Structural equation modelling was used as a statistical tool to analyse the data. Findings The results showed that there are cause-and-effect relationships between students, internal processes and learning and growth perspectives in the balanced scorecard. Nevertheless, a relationship with the resources perspective was not found. Research limitations/implications The sampled schools in this study might be different from normal public schools because these schools get some support from the private sector. Thus, the generalisation of the findings should be made with caution. Practical implications The proposed balanced scorecard model that has been empirically tested in this study can be used in public schools to help manage their organisation. These schools can start with a generic model and modify it to suit their organisation. Originality/value Most of the studies on the application of the balanced scorecard for schools did not test the validity of the framework because of the lack of available data. This study was among the first to empirically test the relationships between perspectives in the balanced scorecard model for public schools. Additionally, the balanced scorecard can be a useful tool for non-managers who work in public schools.

Agility enhancement through agile manufacturing implementation: a case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rahul Kumar ◽  
Kanwarpreet Singh ◽  
Sanjiv Kumar Jain
Keyword(s):  
Organizational Performance ◽  
Business Performance ◽  
Agile Manufacturing ◽  
Business Environment ◽  
Content Type ◽  
Sustained Performance ◽  
Increase In Productivity ◽  
Present Case Study ◽  
Practical Implications

PurposeDynamic business environment has a deep influence on production and management related exercises. In order to remain competitive, organization needs to coordinate with continuous and unpredictable changes taking place in the market. Globalization of markets is posing competitive pressure on firms, which leads them to adopt a new manufacturing paradigm termed agile manufacturing (AM). The purpose of the present case study is to explore the contribution of AM towards agility and productivity enhancements in an Indian manufacturing company.Design/methodology/approachThe study is carried out at forging industry which has been assessed on certain key business performance indicators. The assessment highlighted various issues which had scope for improvement to enhance the agility of the organization. Therefore, a phase-wise implementation of AM is carried to reap the significant benefits as a result of AM implementation in the case study company. The methodology has been applied to decrease the inline rejection, increase the productivity and responsiveness of the organization.FindingsThe results revealed an improvement in performance score from 77.5 to 100. Further, an increase in productivity and reduction in line rejection has been achieved through the systematic implementation of AM.Practical implicationsThe study highlights the contributions of strategic AM implementation to organizational performance and highlights the need for successful management of AM practices for establishing sustained performance of the organization.Originality/valueThe contribution of the present work is the phase-wise implementation of AM in the case studied company.

Do hospital balanced scorecard measures reflect cause-effect relationships?

2017 ◽  
Vol 66 (3) ◽  
pp. 338-361 ◽  
Author(s):  
Marcela Porporato ◽  
Peter Tsasis ◽  
Luz Maria Marin Vinuesa
Keyword(s):  
Balanced Scorecard ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Effect Relationship ◽  
Composite Indices ◽  
Upper Level ◽  
Relationship Of ◽  
Quantitative Case Study ◽  
Practical Implications

Purpose The purpose of this paper is to investigate whether first level measures in the Balanced Scorecard (BSC) declaring a cause-effect relationship by design are composite indices of lower measures, and if they converge into a single factor as is traditionally accepted in the BSC literature. Design/methodology/approach This study reports results of a quantitative case study that focusses on an Ontario (Canada) community hospital that has been using the BSC. Findings The results of this study challenge the cause-effect assumption of the BSC, particularly in a cascading context, and suggest that a lack of attention of how composite indices of lower measures converge into a single higher level measure may be the reason for ineffective use of the BSC. Research limitations/implications The BSC is a dynamic tool; as such there are several measures that have a very short history, thus limiting the observations available to be used in statistical models. Practical implications A key recommendation for practice that emerges from this study is the need to test if lower level metrics do merge naturally in the upper level measure of the BSC; if not, the upper level measure might not be linked to other measures rendering the BSC ineffective in the context of causality. Originality/value Although several studies have argued in favour of the cause-effect relationship of the BSC, none of those found in the literature have paid attention to the way in which first level measures are constructed. This may explain why certain measures are linked, while others are not, to those that are calculated as composite indices of several lower level indicators.

Corporate acceleration process: a systems psychodynamics perspective

2020 ◽  
Vol 33 (6) ◽  
pp. 1163-1180
Author(s):  
Piotr Wójcik ◽  
Krzysztof Obłój ◽  
Aleksandra Wąsowska ◽  
Szymon Wierciński
Keyword(s):  
Open Innovation ◽  
Negative Emotions ◽  
Acceleration Process ◽  
Content Type ◽  
Team Members ◽  
Third Phase ◽  
Multiple Case ◽  
Social Defenses ◽  
Practical Implications

PurposeThe purpose of this paper is to explore the emotional dynamics of the corporate acceleration process, using the systems psychodynamics perspective.Design/methodology/approachThe study applies inductive multiple case study of embedded 10 cases of corporate acceleration, covering both incumbent and startup perspectives, occurring in the context of a corporate accelerator.FindingsWe find that (1) the process of corporate acceleration involves three phases, each of them is dominated by a different emotional state (hope, anxiety and acceptance), triggering different behavioral responses; (2) as a means to deal with negative emotions, entrepreneurs and corporate acceleration program's team members develop different mechanisms of dealing with contradictories in subsequent acceleration phases (defense and copying mechanisms), which are reflected in their behaviors. Coping mechanisms with goal reformulation (i.e. refocus from the officially declared “open innovation” goals toward mainly symbolic ones) is an effective strategy to manage negative emotions in third phase of the acceleration.Research limitations/implicationsOur sample is limited to two relatively similar accelerators established by telecom companies, and therefore, our theoretical and practical conclusions cannot be generalized.Practical implicationsWe supplement the studies of corporate accelerators that imply how to design them better and improve decision-making rules with recommendation that in order to improve their effectiveness in terms of learning and innovations, their managers need not only to learn how to manage structural and procedural differences but also how to overcome social defenses triggered by corporate–startups cooperation.Originality/valueBy documenting a multidimensional impact of acceleration process, and especially shedding light on psychodynamic aspects behind such liaisons, this paper contributes to richer understanding of corporate–startup relationships, typically examined through a rationalistic lens of strategy literature. The study contributes to interorganizational research and open innovation literature, by showing that corporate acceleration process is marked by phases based on the type of emotions intertwined with the nature and dynamism of its life cycle. It indicates how these emotions are managed depending on their type.

scholarly journals Sinabung volcano: how culture shapes community resilience

2019 ◽  
Vol 28 (3) ◽  
pp. 290-303
Author(s):  
Marta Mori ◽  
Ronan McDermott ◽  
Saut Sagala ◽  
Yasmina Wulandari
Keyword(s):  
Structured Interviews ◽  
Content Type ◽  
Aid Dependency ◽  
Relief Operations ◽  
Long Term Impact ◽  
Cultural Experts ◽  
Practical Implications

Purpose The purpose of this paper is to explore how culture, including traditions and social structures, can influence resilience and how culturally sensitive relief operations can put affected people and their context at the core of any interventions. Design/methodology/approach A case study of the Mt Sinabung volcano area in Indonesia was undertaken. As part of the case study, an analysis of interventions was conducted, which was complemented by semi-structured interviews with Karo cultural experts and humanitarian organisations. Findings Culture influences the manner in which the Karo people react to volcano eruptions with varying implications for recovery. In addition, relief organisations which understand people’s actions through a cultural lens have better managed to tailor programs with long-term impact, thereby avoiding aid dependency. Practical implications Practical examples of disaster management activities that adequately account for the beneficiaries’ way of living prior to the eruptions are provided. Aid actors are provided with guidance concerning how to better tailor their activities in line with a cultural lens. Originality/value The study provides empirical grounding for claims concerning the role of culture in planning interventions in Indonesia and other similar contexts.

E-procurement in small and medium sized enterprises; facilitators, obstacles and effect on performance

2019 ◽  
Vol 27 (2) ◽  
pp. 839-866
Author(s):  
Cristóbal Sánchez-Rodríguez ◽  
Angel Rafael Martínez-Lorente ◽  
David Hemsworth
Keyword(s):  
Business Performance ◽  
Design Methodology ◽  
Top Management ◽  
Process Performance ◽  
Management Support ◽  
Content Type ◽  
Procurement Process ◽  
Top Management Support ◽  
Strategic Purchasing ◽  
Practical Implications

Purpose The purpose of this paper is to analyze e-procurement in small and medium-sized enterprises (SMEs) and its relationship with top management support, IT obstacles and strategic purchasing and the effect of e-procurement on performance (procurement performance and business performance). Design/methodology/approach The hypotheses were tested using a sample of 199 managers from SMEs in manufacturing. Findings The results indicated a significant relationship between e-procurement in SMEs and top management support, IT obstacles and strategic purchasing. Similarly, the authors found a positive relationship between e-procurement and procurement process performance and business performance. Practical implications The findings stress to SME managers, the need to pay attention to top management support, IT obstacles and strategic purchasing when implementing e-procurement. Similarly, it provides evidence of the benefits of e-procurement on procurement process performance and business performance. Originality/value This study fills a gap in the literature regarding e-procurement in SMEs and its impact on performance. SMEs constitute a significant part of today’s economies and e-procurement can significantly impact the performance of these organizations.

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