Developing A Strategy Map Based on Sustainability Balanced Scorecard Framework for Manufacturing Industry in Indonesia

  • Authors

    • Rahmat Nurcahyo
    • Saripuji Pustiwari
    • Djoko Sihono Gabriel
    2018-06-08
    https://doi.org/10.14419/ijet.v7i2.34.13910
  • DEMATEL, Indicator, Strategy map, Sustainability balanced scorecard.

  • Abstract

    This study proposes a structural evaluation to link key performance indicator into a strategy map based on sustainability balanced scorecard framework for manufacturing industry in Indonesia. With four perspectives (finance, stakeholder, internal business process and learning and growth) on Sustainability Balanced Scorecard, the evaluation of relationship between perspectives and indicators of manufacturing industry are synthesized from relevant literature and experts. The Decision Making Trial and Evaluation Laboratory (DEMATEL) method employed to identify critical central and influential factors, to determine the causal relationship and finally to develop a visual strategy map to improve corporate sustainability. The three most important indicators are sustainability award, certification of environmental and social standards and resource productivity. The result can help prioritizing the performance indicators and show which areas that need improvement most.

     

     

  • References

    1. [1] Cherrafi, S. Elfezazi, A. Chiarini, and K. Benhida, “The integration of lean manufacturing, siz sigma and sustainability: A literature review and future research directions for developing a specific model,†Journal of Cleaner Production, vo 139, pp. 828-246, 2016.

      [2] W.P. Wong, and K.Y. Wong, “Synergizing an ecosphere of lean for sustainable operations, “Journal of Clean Production, vol 85, pp. 51-66, 2014.

      [3] F. Figge, T. Hahn, S. Schaltegger, and M. Wagner, “The sustainability balanced scorecard – linking sustainabillity management to business strategy,†Business Strategy and the Environment, vol 11, pp. 269-284, 2002.

      [4] H.Y. Wu, “Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard,†Evaluation and Program Planning, vol 35, pp. 303-320, 2012.

      [5] T. Supeekit, T. Somboonwiwat, and D Kritchanchai, “D MATEL-modified ANP to evaluate internal hospital supply chain performance,†Computers & Industrial Engineering, vol 102, pp. 318-330, 2016.

      [6] United Nations Industrial Developmen Organization (UNIDO), “The role of technology and innovation in inclusive and sustainable industrial development,†Vienna, 2016.

      [7] Deloitte, “Global Manufacturing Competitiveness Index, 2016.

      [8] G. Aras, and D. Crowther, “Governance and sustainability,†Management Decisions, vol 46, pp. 433-448, 2008.

      [9] WCED (World Commission on Environment and Develoment), “Our common future,†Oxford: Oxford University Press, 1987.

      [10] F. Figge, T. Hahn, S. Schaltegger, and M. Wagner, “The sustainability balanced scorecard – linking sustainabillity management to business strategy,†Business Strategy and the Environment, vol 11, pp. 269-284, 2002.

      [11] A. Lloret, “Modeling corporate sustainability strategy,†Journal of Business Research, vol 69, pp. 418-425, 2016.

      [12] F. Figge, T. Hahn, S. Schaltegger, and M. Wagner, “The sustainability balanced scorecard – linking sustainabillity management to business strategy,†Business Strategy and the Environment, vol 11, pp. 269-284, 2002.

      [13] T. Bieker, and B. Waxenberger, “Sustainability balanced scorecard and business ethics,†Paper presenter at the greening of industry network conference, Goteborg, Sweden, 2002.

      [14] R. Kaplan, and D. Norton, “The balanced scorecard: translating strategy into action,†Harvard School Press, 1996.

      [15] R. D. Banker, H.M. Chang, J. Pizzini, “The balanced scorecard: judgmenal effects of performance measures linked to strategy,†The Accounting Review, vol 79, pp. 1-23, 2004.

      [16] N. Evans, “Assessing the balanced scorecard as a management tool for hotels,†International Journal of Contemporary Hospital Management, vol 17, pp. 376-390, 2007.

      [17] N. Makhijani, and J. Creelman, “How leading organizations successfully implement corporate strategy with the balanced scorecard,†The OTI Thought Leadership Series, vol 1, pp. 1-16, 2008.

      [18] G.H. Tzeng, C.H. Chiang, and C.W. Li, “Evaluating intertwined effects in e-learning programs: a novel hybrid MCDCM model based on factor analysis and DEMATEL,†Expert Systems with Application, vol 32, pp. 1028-1044, 2007.

      [19] M. Dytczak, and G. Ginda, “Is explicit processing of fuzzy direct influence evaluations in DEMATEL indispensable?†Expert Systems with Applications, vol 40, pp. 2027-2032.

      [20] C.Y. Hsu, K.T. Chen, and G.H. Tzeng, “FMCDM with fuzzt DEMATEL approach for customers choice behavior model,†International Journal Fuzzy System, vol 9, pp. 236-246, 2007.

      [21] C.C. Hsu, Évaluation criteria for blog design and analysis of causal relationship using factor analysis and DEMATEL,†Expert Systems with Application, vol 39, pp. 187-193, 2012.

      [22] Hsu, A.H. Hu, C. Chiou, and T. Chen, “Using the FDM and ANP to construct a sustainability balanced scorecard for the semiconductor industry,†Experts Systems with Applications, vol 38, pp. 12891-12899, 2011.

      [23] Indonesia Ministy of Industry, Pedoman Penilaian Penghargaan Industri Hijau, 2014.

      [24] W.W. Wu, “Choosing knowledge management strategies by using a combined ANP and DEMATEL approach,†Expert Systems with Application, vol 35, pp. 828-835, 2008.

      [25] C.L. Lin, and G.H. Tzeng, “A value-created system of science (technology) park by using DEMATEL,†Expert Systems with Applications, vol 36, pp. 9683-9697, 2009.

      [26] J.J.H. Liou, G.H. Tzeng, and H.C. Chang, “Airline safety measurement using a novel hybrid model.†Journal of Air Transportation Management, vol 13, pp. 243-249, 2007.

      [27] W.W. Wu, and Y.T. Lee, “Developing global managers competencies using the fuzzy DEMATEL method,†Expert Systems with Applications, vol 32, pp. 499-507, 2007.

      [28] Y.J. Chiu, H.C. Chen, G.H. Tzeng, and J.Z. Shyu, Marketing strategy based on customer behaviour for the LCD-TV,†International Journal of Management Decision Making, vol 7, pp. 143-165, 2006.

      [29] C.L. Lin, and G.H. Tzeng, “A value-created system of science (technology) park by using DEMATEL,†Expert Systems with Applications, vol 36, pp. 9683-9697, 2009.

      [30] T. Supeekit, T. Somboonwiwat, and D Kritchanchai, “ DEMATEL-modified ANP to evaluate internal hospital supply chain performance,†Computers & Industrial Engineering, vol 102, pp. 318-330, 2016.

      [31] Y.C. Lee, T.M. Yen, and C.H. Tsai, “Using importance-performance analysis and decision making trial and evaluation laboratory to enhance order-winner criteria – A study of computer industry,†Information Technology Journal, vol 7, pp. 396-408, 2008.

      [32] G.H. Tzeng, C.H. Chiang, and C.W. Li, “Evaluating intertwined effects in e-learning programs: a novel hybrid MCDCM model based on factor analysis and DEMATEL,†Expert Systems with Application, vol 32, pp. 1028-1044, 2007.

  • Downloads

  • How to Cite

    Nurcahyo, R., Pustiwari, S., & Sihono Gabriel, D. (2018). Developing A Strategy Map Based on Sustainability Balanced Scorecard Framework for Manufacturing Industry in Indonesia. International Journal of Engineering & Technology, 7(2.34), 48-51. https://doi.org/10.14419/ijet.v7i2.34.13910

    Received date: 2018-06-08

    Accepted date: 2018-06-08

    Published date: 2018-06-08