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Quantification of Corporate Performance Using Fuzzy Analytic Network Process: The Case of E-Commerce
Abstract
Performance Measurement (PM) is a combination of a company’s characteristics that can be numerically expressed. The aim of the PM is to provide feedback about the success of current activities and give insight about future performance. Performance of a company depends on its vision and goals so the definition of performance can vary with time. While PM literature provides various models for PM, the most accepted model is Balanced ScoreCard (BSC). BSC supplies four inter-related perspectives that the companies can identify as indicators for performance. These perspectives are: financial, internal business processes, customer, and learning and growth perspectives. In this study, PM is formulated as a Multi Attribute Decision Making (MADM) problem and a Fuzzy Analytical Network Process (FANP) based performance measurement model is proposed. The performance measurement criteria are built based on four perspectives of BSC. The proposed model utilizes FANP in order to determine the relative importance of perspectives and indicators. The performance scores for each indicator are determined based on the predefined goals and these scores are aggregated to reach an overall performance score.
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