Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA

This study introduces an advanced performance measurement system for 31 municipalities in Tehran and Shahriar, integrating the Balanced Scorecard (BSC) and Data Envelopment Analysis (DEA) methodologies. The combination of BSC and DEA was chosen because BSC offers a multidimensional framework for ass...

Full description

Saved in:
Bibliographic Details
Main Authors: Yusof Chaharlang, Hamed Soleimani, Esmaeil Mehdizadeh, Alireza Alinejad
Format: Article
Language:English
Published: Ayandegan Institute of Higher Education, 2025-03-01
Series:International Journal of Research in Industrial Engineering
Subjects:
Online Access:https://www.riejournal.com/article_205055_7d286bca22dd25319afe5e9f0f39c9f4.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1832577756301361152
author Yusof Chaharlang
Hamed Soleimani
Esmaeil Mehdizadeh
Alireza Alinejad
author_facet Yusof Chaharlang
Hamed Soleimani
Esmaeil Mehdizadeh
Alireza Alinejad
author_sort Yusof Chaharlang
collection DOAJ
description This study introduces an advanced performance measurement system for 31 municipalities in Tehran and Shahriar, integrating the Balanced Scorecard (BSC) and Data Envelopment Analysis (DEA) methodologies. The combination of BSC and DEA was chosen because BSC offers a multidimensional framework for assessing performance from diverse perspectives, while DEA provides a quantitative tool for evaluating efficiency, particularly useful when dealing with multiple inputs and outputs. Together, they allow for both qualitative and quantitative evaluation of municipal performance, addressing the need for comprehensive performance assessment. However, traditional DEA models often fail to account for dynamic changes and intermediate linkages between these perspectives over time. The Dynamic Network Slacks-Based Model (DNSBM) of DEA, proposed in this study, addresses these limitations by incorporating both network interdependencies and dynamic changes in performance evaluation. Field studies and expert interviews revealed interconnections between BSC perspectives, and dynamic changes were modeled by linking networks over multiple periods. The model estimated efficiency values for each period, showing an average overall score of 0.857, with specific scores for financial (0.94), learning and growth (0.83), internal processes (0.96), and customer (0.34). Statistically significant correlations were found between most perspectives, except financial and learning/growth. The model identified dynamic performance trends, inefficiency levels, and strategies to improve underperforming DMUs, offering a comprehensive approach to enhancing municipal performance.
format Article
id doaj-art-9237544a66504e3fa067727445fc3320
institution Kabale University
issn 2783-1337
2717-2937
language English
publishDate 2025-03-01
publisher Ayandegan Institute of Higher Education,
record_format Article
series International Journal of Research in Industrial Engineering
spelling doaj-art-9237544a66504e3fa067727445fc33202025-01-30T15:10:51ZengAyandegan Institute of Higher Education,International Journal of Research in Industrial Engineering2783-13372717-29372025-03-011419911410.22105/riej.2024.468397.1457205055Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEAYusof Chaharlang0Hamed Soleimani1Esmaeil Mehdizadeh2Alireza Alinejad3Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran.Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran.Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran.Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran.This study introduces an advanced performance measurement system for 31 municipalities in Tehran and Shahriar, integrating the Balanced Scorecard (BSC) and Data Envelopment Analysis (DEA) methodologies. The combination of BSC and DEA was chosen because BSC offers a multidimensional framework for assessing performance from diverse perspectives, while DEA provides a quantitative tool for evaluating efficiency, particularly useful when dealing with multiple inputs and outputs. Together, they allow for both qualitative and quantitative evaluation of municipal performance, addressing the need for comprehensive performance assessment. However, traditional DEA models often fail to account for dynamic changes and intermediate linkages between these perspectives over time. The Dynamic Network Slacks-Based Model (DNSBM) of DEA, proposed in this study, addresses these limitations by incorporating both network interdependencies and dynamic changes in performance evaluation. Field studies and expert interviews revealed interconnections between BSC perspectives, and dynamic changes were modeled by linking networks over multiple periods. The model estimated efficiency values for each period, showing an average overall score of 0.857, with specific scores for financial (0.94), learning and growth (0.83), internal processes (0.96), and customer (0.34). Statistically significant correlations were found between most perspectives, except financial and learning/growth. The model identified dynamic performance trends, inefficiency levels, and strategies to improve underperforming DMUs, offering a comprehensive approach to enhancing municipal performance.https://www.riejournal.com/article_205055_7d286bca22dd25319afe5e9f0f39c9f4.pdffinanciallearning and growthinternal business processescustomer perspectives
spellingShingle Yusof Chaharlang
Hamed Soleimani
Esmaeil Mehdizadeh
Alireza Alinejad
Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA
International Journal of Research in Industrial Engineering
financial
learning and growth
internal business processes
customer perspectives
title Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA
title_full Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA
title_fullStr Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA
title_full_unstemmed Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA
title_short Revolutionizing municipality performance evaluation: A dynamic network fusion of BSC and DEA
title_sort revolutionizing municipality performance evaluation a dynamic network fusion of bsc and dea
topic financial
learning and growth
internal business processes
customer perspectives
url https://www.riejournal.com/article_205055_7d286bca22dd25319afe5e9f0f39c9f4.pdf
work_keys_str_mv AT yusofchaharlang revolutionizingmunicipalityperformanceevaluationadynamicnetworkfusionofbscanddea
AT hamedsoleimani revolutionizingmunicipalityperformanceevaluationadynamicnetworkfusionofbscanddea
AT esmaeilmehdizadeh revolutionizingmunicipalityperformanceevaluationadynamicnetworkfusionofbscanddea
AT alirezaalinejad revolutionizingmunicipalityperformanceevaluationadynamicnetworkfusionofbscanddea