Causality analysis in business performance measurement system using system dynamics methodology

dc.contributor.authorYusof, Zainuridah
dc.contributor.authorYusoff, Wan Fadzilah Wan
dc.contributor.authorMaarof, Faridah
dc.descriptionThis article is not available at CUD collection.This article may be downloaded for personal use only. Any other use requires prior permission of the author and AIP Publishing. This article appeared in AIP Conference Proceedings 1605, 1201 (2014) and may be found at
dc.description.abstractOne of the main components of the Balanced Scorecard (BSC) that differentiates it from any other performance measurement system (PMS) is the Strategy Map with its unidirectional causality feature. Despite its apparent popularity, criticisms on the causality have been rigorously discussed by earlier researchers. In seeking empirical evidence of causality, propositions based on the service profit chain theory were developed and tested using the econometrics analysis, Granger causality test on the 45 data points. However, the insufficiency of well-established causality models was found as only 40% of the causal linkages were supported by the data. Expert knowledge was suggested to be used in the situations of insufficiency of historical data. The Delphi method was selected and conducted in obtaining the consensus of the causality existence among the 15 selected expert persons by utilizing 3 rounds of questionnaires. Study revealed that only 20% of the propositions were not supported. The existences of bidirectional causality which demonstrate significant dynamic environmental complexity through interaction among measures were obtained from both methods. With that, a computer modeling and simulation using System Dynamics (SD) methodology was develop as an experimental platform to identify how policies impacting the business performance in such environments. The reproduction, sensitivity and extreme condition tests were conducted onto developed SD model to ensure their capability in mimic the reality, robustness and validity for causality analysis platform. This study applied a theoretical service management model within the BSC domain to a practical situation using SD methodology where very limited work has been done. © 2014 AIP Publishing LLC.en_US
dc.description.sponsorshipMalaysian Mathematical Sciences Society (PERSAMA),School of Mathematical Sciences,Universiti Sains Malaysia
dc.identifier.citationYusof, Z., Yusoff, W. F. W., & Maarof, F. (2014). Causality analysis in business performance measurement system using system dynamics methodology. In AIP Conference Proceedings (Vol. 1605, pp. 1201–1206).
dc.publisherAmerican Institute of Physics Inc.en_US
dc.relationAuthors Affiliations: Yusof, Z., Telekom Malaysia Research and Development Sdn. Bhd., TM Innovation Centre, Lingkaran Teknokrat Timur, 63000 Cyberjaya, Selangaor, Malaysia; Yusoff, W.F.W., Graduate School of Management (GSM), Multimedia University, Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia; Maarof, F., Canadian University of Dubai, 1st Interchange, Sheikh Zayed Road, Dubai, United Arab Emirates
dc.relation.ispartofseriesAIP Conference Proceedings;Vol. 1605
dc.rightsPermission to reuse abstract has been secured from American Institute of Physics Inc.
dc.rights.holderCopyright : 2014 AIP Publishing LLC.
dc.subjectBalanced Scorecarden_US
dc.subjectSystem dynamicsen_US
dc.subjectComputer simulationen_US
dc.subjectManagement scienceen_US
dc.subjectStrategic planningen_US
dc.subjectSystem theoryen_US
dc.subjectEnvironmental complexityen_US
dc.subjectExperimental platformen_US
dc.subjectGranger causality testen_US
dc.subjectPerformance measurement systemen_US
dc.subjectSustainable developmenten_US
dc.titleCausality analysis in business performance measurement system using system dynamics methodologyen_US
dc.typeConference Paperen_US
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