A new framework for dynamic sustainability balanced scorecard in order to strategic decision making in a turbulent environment

Document Type: Research Paper

Authors

1 Department of Industrial Management, Management and Accounting Faculty, Shahid Beheshti University, G.C., Tehran, Iran

2 School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Abstract

The purpose of this paper is to develop a new framework for strategic decision making in a turbulent environment via a dynamic sustainability balanced scorecard (BSC). Environmental factors are selected by fuzzy TOPSIS method and added to a dynamic model of BSC for a company. The decision-making model is proposed in three main scenarios: Optimistic (economic growth scenario), Realistic (average long term economic situation) and Pessimistic (continuity of current sanctions situation scenario) and two internal policies: Production maximization is the first internal policy and Productivity maximization is the second internal policy.
The model is separately simulated in each scenario and policy, with the dynamic BSC model and every main aspect of the organization is analyzed with the majority of profit-making and its sustainability. The results show that a different policy is preferred in each scenario, which can help strategic managers for the decision-making process in uncertain and turbulent environments. Due to the increasing complexity of organizations in the competitive environment, it is necessary to propose performance evaluation models. The Balanced Scorecard (BSC) model is one of the most commonly used models for enterprise performance assessment that can be significantly adapted to environmental conditions. This research is novel because the environmental factors are added to a dynamic model of BSC for a company that has been encompassed with a turbulent economic, political and social environment within last years.

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Main Subjects


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