Abstract

The balanced scorecard (BSC) is a multi-criteria evaluation concept that highlights the importance of performance measurement criteria. Although there is an abundance of literature on the BSC framework, there is not much literature on how the framework should be implemented with interdependent relationships and linguistic preferences. To deal with these issues, this study proposes an original approach: the fuzzy network balanced scorecard (FNBSC) method that uses an analytic network process (ANP) to analyze a network’s BSC aspects and criteria to evaluate the uncertainty. Four interdependent aspects and forty-four criteria were evaluated for an international airline firm in Taiwan. The empirical result showed that the financial aspect is the most influencing aspect and the three performance measures are the cost of sales, profitability, and company growth versus industry growth. The managerial implications and concluding remarks are also included.

Key words: Analytic network process, balanced scorecard, fuzzy set theory, service quality.