Hierarchical balanced scorecard-based organizational goals and the efficiency of controls processes

Sangjae Lee, Francis Joseph Costello and Kun Chang Lee

Journal of Business Research, 2021, vol. 132, issue C, 270-288

Abstract: Our paper suggests the maximized extent of hierarchically interrelated balanced scorecard-based organizational goals (e.g., financial, customer, internal business, learning, and growth) by weighting the current status of controls processes. The efficiency of the controls processes was analyzed given the extent of maximized organizational goals to show the adjustment of controls that can proceed given the maximized extent of governance objectives. This paper uses the survey data collected from two IT service companies based in China (n = 96) and Korea (n = 191). Using a genetic algorithm, we found the optimized extent of the hierarchically interrelated organizational goals accomplished from the controls processes’ weighted current status. The efficiency of the current status for the controls processes was evaluated using data envelopment analysis to produce IT and enterprise goals and governance objectives. Based on the maximized extent of the goals provided from the current status of the controls, the significantly different average efficiencies are suggested among the five classes of the controls processes. The slack analysis of controls shows the specific controls processes and the extent of controls to be reduced. This provided an indication of the direction of controls design that adjusts the level of each controls processes that can accomplish the same extent of organizational goals. The recommendation of controls design based on each control’s efficiency is lacking, especially considering the organizational hierarchy of the balanced scorecard based organizational goals, including their relations with controls processes. This study intends to fill this void by suggesting and comparing the controls efficiency for five classes of controls processes and balanced scorecard-based organizational goals for junior and senior employees. Based on COBIT 5′s goals cascade, this research provides a useable tool that can implement an effective and efficient IS security design.

Keywords: Controls processes; Balanced scorecard-based organizational goals; Efficiency of controls; Processes; Classes of controls processes; Controls design (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:132:y:2021:i:c:p:270-288

DOI: 10.1016/j.jbusres.2021.04.038

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