Using the sustainability-balanced scorecard for assessing sustainability issues of the green energy companies
Abstract
Assessing the sustainability issues of the green energy companies is a multiple criterion decision that includes both quantitative and qualitative elements. The sustainability-balanced scorecard (SBSC) for sustainability evaluation is more difficult than an internal evaluation and it requires more serious investigation in the green energy companies. This paper objectives to mix this sustainability evaluation and use fuzzy information with the SBSC. The study presents a fuzzy DEMATEL (decision-making trial and evaluation laboratory) method to develop an assessment model that integrates triangular fuzzy numbers, and DEMATEL to develop a fuzzy assessment, which prioritizes the relative influence of SBSC for green energy companies’ elements. First, this paper conducts a literature review on SBSC regarding sustainability issues to generate 15 elements with five aspects, which are used to measure the sustainability assessment. Next, fuzzy DEMATEL is employed to manage the uncertain linguistic terms, then to set up an influential network relationship map (INRM). This suggested model provides a structure for the related green energy companies to select the evaluation method and could arrange the sustainability approach according to future competitive pressure. The result shows that environmental aspect is the most direct effect and social aspect is the most important effect aspect to the other aspects.
First published online 10 February 2022
Keyword : sustainability, sustainability-balanced scorecard (SBSC), green energy companies, influential network relationship map
How to Cite
Lu, M.-T., Chang, S.-C., & Huang, L.-H. (2022). Using the sustainability-balanced scorecard for assessing sustainability issues of the green energy companies. Technological and Economic Development of Economy, 28(2), 483–499. https://doi.org/10.3846/tede.2022.16334
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Zadeh, L. A. (1965). Fuzzy sets. Information and Control, 8(2), 338–353. https://doi.org/10.1016/S0019-9958(65)90241-X
Chang, S. C., Chang, H. H., & Lu, M. T. (2021a). Evaluating Industry 4.0 technology application in SMEs: Using a hybrid MCDM approach. Mathematics, 9, 414. https://doi.org/10.3390/math9040414
Chang, S. C., Lu, M. T., Chen, M. J. & Huang, L. H. (2021b). Evaluating the application of CSR in the high-tech industry during the COVID-19 pandemic. Sustainability, 9(15), 1715. https://doi.org/10.3390/math9151715
Chung, H. S. (2021). Taiwan’s offshore wind energy policy: From policy dilemma to sustainable development. Sustainability, 13(18), 10465. https://doi.org/10.3390/su131810465
Dinçer, H., Hacıoğlu, Ü., & Yüksel, S. (2017). Balanced scorecard based performance measurement of European airlines using a hybrid multicrite-ria decision making approach under the fuzzy environment. Journal of Air Transport Management, 63, 17–33. https://doi.org/10.1016/j.jairtraman.2017.05.005
Duman, M., Taskaynatan, M., Kongar, E., & Rosentrater, A. (2018). Integrating environmental and social sustainability into performance evalua-tion: A balanced scorecard-based grey-DANP approach for the food industry. Frontiers in Nutrition, 5, 65. https://doi.org/10.3389/fnut.2018.00065
Gao, J., & Bansal, P. (2013). Instrumental and integrative logics in business sustainability. Journal of Business Ethics, 112, 241–255. https://doi.org/10.1007/s10551-012-1245-2
Guo, R., Tao, L., Lee, C. B., & Wang, T. (2017). A path analysis of greenwashing in a trust crisis among Chinese energy companies: The role of brand legitimacy and brand loyalty. Journal of Business Ethics, 140, 523–536. https://doi.org/10.1007/s10551-015-2672-7
Gupta, H., Amiri, M., Soufi, J. B., & Pishdar, M. (2016). A dynamic network efficiency measurement of airports performance considering sus-tainable development concept: A fuzzy dynamic network-DEA approach. Journal of Air Transport Management, 57, 272–290. https://doi.org/10.1016/j.jairtraman.2016.08.007
Hansen, E., & Schaltegger, S. (2016). The sustainability balanced scorecard: A systematic review of architectures. Journal of Business Ethics, 133, 193–221. https://doi.org/10.1007/s10551-014-2340-3
Hristov, I., Chirico, A., & Appolloni, A. (2019). Sustainability value creation, survival, and growth of the company: A critical perspective in the Sustainability Balanced Scorecard (SBSC). Sustainability, 11, 2119. https://doi.org/10.3390/su11072119
Hu, S. K., Lu, M. T., & Tzeng, G. W. (2015). Improving mobile commerce adoption using a new hybrid fuzzy MADM model. International Journal of Fuzzy Systems, 17(3), 399–413. https://doi.org/10.1007/s40815-015-0054-z
Kaplan, R. S., & Norton, D. R. (2005). The balanced scorecard: measures that drive performance. Harvard Business Review, 83(7), 172–180.
Liou, J. J. H., Kaklauskas, A., Lu, M. T., & Chuang, Y. C. (2019). Improving strategic orientations for promoting hotel services using an integrated rough MAGDM model. Technological and Economic Development of Economy, 25(2),188–218. https://doi.org/10.3846/tede.2019.8419
Liou, J. J. H., Lu, M. T., Hu, S. K., Cheng, C. H., & Chuang, Y. C. (2017). A hybrid MCDM model for improving the electronic health record to better serve client needs. Sustainability, 9, 1819. https://doi.org/10.3390/su9101819
Lu, M. T., Hsu, C. C., Liou, J. J., & Lo, H. W. (2018). A hybrid MCDM and sustainability balanced scorecard model to establish sustainable per-formance evaluation for international airports. Journal of Air Transport Management, 71, 9–19. https://doi.org/10.1016/j.jairtraman.2018.05.008
Lu, M. T., Hu, S. K., Huang, L. H., & Tzeng, G. H. (2015). Evaluating the implementation of business-to-business m-commerce by SMEs based on a new hybrid MADM model. Management Decision, 53(2), 290–317. https://doi.org/10.1108/MD-01-2014-0012
Lu, M. T., Lin, S. W., & Tzeng, G. H. (2013). Improving RFID adoption in Taiwan’s healthcare industry based on a DEMATEL technique with a hybrid MCDM model. Decision Support Systems, 56, 259–269. https://doi.org/10.1016/j.dss.2013.06.006
Lu, M. T., Tsai, J. F., Shen, S. P., Lin, M. H., & Hu, Y. C. (2020). Estimating sustainable development performance in the electrical wire and cable industry: Applying the integrated fuzzy MADM approach. Journal of Cleaner Production, 277, 122440. https://doi.org/10.1016/j.jclepro.2020.122440
Na, H. J., Lee, K. C., Choi, S. U., & Kim, S. T. (2020). Exploring CEO messages in sustainability management reports: Applying sentiment mining and sustainability balanced scorecard methods. Sustainability, 12(2), 590. https://doi.org/10.3390/su12020590
Olfat, L., Amiri, M., Soufi, J. B., & Pishdar, M. (2016). A dynamic network efficiency measurement of airports performance considering sustaina-ble development concept: A fuzzy dynamic network-DEA approach. Journal of Air Transport Management, 57, 272–290. https://doi.org/10.1016/j.jairtraman.2016.08.007
Pandey, M. M. (2016). Evaluating the service quality of airports in Thailand using fuzzy multi-criteria decision making method. Journal of Air Transport Management, 57, 241–249. https://doi.org/10.1016/j.jairtraman.2016.08.014
Parkouhi, S. V., Ghadikolaei, A. S., & Lajimi, H. F. (2019). Resilient supplier selection and segmentation in grey environment. Journal of Cleaner Production, 207, 1123–1137. https://doi.org/10.1016/j.jclepro.2018.10.007
Petrovic, I., & Kankaras, M. (2020). A hybridized IT2FS-DEMATEL-AHP-TOPSIS multicriteria decision making approach: Case study of selec-tion and evaluation of criteria for determination of air traffic control radar position. Decision Making: Applications in Management and Engi-neering, 3, 146–164. https://doi.org/10.31181/dmame2003134p
Prashar, A. (2019). Towards sustainable development in industrial small and Medium-sized Enterprises: An energy sustainability approach. Jour-nal of Cleaner Production, 235(20), 977–996. https://doi.org/10.1016/j.jclepro.2019.07.045
Qi, J., Hu, J., & Peng, Y. H. (2020). Integrated rough VIKOR for customer-involved design concept evaluation combining with customers’ pref-erences and designers’ perceptions. Advanced Engineering Informatics, 46, 101138. https://doi.org/10.1016/j.aei.2020.101138
Rezaei, J., Hemmes, A., & Tavasszy, L. (2017). Multi-criteria decision-making for complex bundling configurations in surface transportation of air freight. Journal of Air Transport Management, 61, 95–105. https://doi.org/10.1016/j.jairtraman.2016.02.006
Tsai, F. M., Bui, T. D., Tseng, M. L., Wu, K. J., & Chiu, A. S. F. (2020). A performance assessment approach for integrated solid waste manage-ment using a sustainable balanced scorecard approach. Journal of Cleaner Production, 251, 119740. https://doi.org/10.1016/j.jclepro.2019.119740
Tsalis, T. A., Nikolaou, I. E., Grigoroudis, E., & Tsagarakis, K. P. (2013). A framework development to evaluate the needs of SMEs in order to adopt a sustainability-balanced scorecard. Journal of Integrative Environmental Sciences, 10(3–4), 179–197. https://doi.org/10.1080/1943815X.2013.858751
Wang, Y. L., Shen, K. Y., Huang, J. Y., & Luarn, P. (2020). Use of a Refined Corporate Social Responsibility Model to Mitigate Information Asymmetry and Evaluate Performance. Symmetry, 12, 1349. https://doi.org/10.3390/sym12081349
Yucesan, M., & Gul, M. (2020). Hospital service quality evaluation: an integrated model based on Pythagorean fuzzy AHP and fuzzy TOPSIS. Soft Computing, 24(5), 3237–3255. https://doi.org/10.1007/s00500-019-04084-2
Zadeh, L. A. (1965). Fuzzy sets. Information and Control, 8(2), 338–353. https://doi.org/10.1016/S0019-9958(65)90241-X