International Journal of Economics and Business Administration
Articles Information
International Journal of Economics and Business Administration, Vol.1, No.1, Jul. 2015, Pub. Date: Jun. 17, 2015
Defining Balanced Scorecard Aspects in Banking Industry Using FAHP Approach
Pages: 25-38 Views: 1766 Downloads: 2839
Authors
[01] Malihe Rostami, Department of finance and accounting, Electronic Branch, Islamic Azad University, Tehran, Iran.
[02] Ahmad Goudarzi, Department of finance and accounting, Electronic Branch, Islamic Azad University, Tehran, Iran.
[03] Mahdi Madanchi Zaj, Department of finance and accounting, Electronic Branch, Islamic Azad University, Tehran, Iran.
Abstract
This study has been conducted to define Balanced Scorecard model as one of evaluation system in bank. Financial institutions and banks are trying to increase their competitive advantage, so find a comprehensive evaluation model for the performance that is a main key to survive and get competitive position. There are several theories and methods of assessment that can be employed depending on the size and type of organization. Balanced Scorecard (BSC) is one of the measurement systems that cover short and long term plans and strategies and also, internal as well as external control. BSC consider aspects of the financial, customer, internal processes and learning and growth. In this article, aspects of Balanced Scorecard and the importance of each aspect and related indicators are examined. To achieve the research objective Fuzzy Analytical Hierarchy Process (FAHP) is used. At the first step of study, 56 indicators were found based on prior studies and literature which were scrutinized by expert opinions through administering a questionnaire. Ultimately 9 indicators were extracted. In the second step of study, the weight of each indicator is investigated using pair comparison questionnaire based on FAHP approach. According to research, the first priority is customer aspect, the second priority is the financial aspect, third priority is internal processes aspect and the end, learning and growth aspect are the fourth priority. Meanwhile, the “Market rate” and the “Growth rate of customer complaints” and “Customer attract rate” are the most important indicators of customer aspect. “Revenues”, “P/E ratio” and “leverage” are the most important indicators in the financial aspects, the “Electronic transactions share”, “Performance management” and “Research and development costs” are the most important indicators in internal processes aspect and “Employee stability”, “Loan per capita” and “Present reduction in disciplinary matters” are the most important indicators in growing and learning aspect.
Keywords
Balanced Scorecard (BSC), Customer Aspect, Financial Aspect, Internal Processes Aspect, Learning and Growth Aspect, FAHP
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