Conceptual Design of Sustainable Outsourcing with Balanced Scorecard Using Analytic Hierarchy Process: A Case Study for Fajr Jam Gas Refining Company

Document Type : Original Article


1 Department of Management, Kish International Branch, Islamic Azad University, Kish Island, Iran

2 Department of Accounting, Tehran Sciences and Researches Azad University, Tehran, Iran

3 Departments of Accounting, Khatam University, Tehran, Iran


The purpose of this paper was to design a conceptual model of sustainable outsourcingwith a balanced scorecard using the hierarchical analysis process. In this research, success factors of outsourcing were identified based on previous studies conducted inside and outside of the country. To ensure the validity of the factors, in addition to the content validity and the validity index, the reliability was guaranteed using the inconsistencyratio of the paired comparison questionnaire based on the Expert Choice report. An affinity diagram developed using the brainstorming approach was implemented for strategic objectives of the model. Our findings indicated that a sustainable outsourcing model was successfully designed using a balanced scorecard. Economic, social and environmental sustainability was considered in each of the balanced scorecard faces used in the model. In this work, sustainable domestic business, customer satisfaction, and sustainable learning and growth were the main objectives. Finally, a balanced scorecard with 26 strategic objectives was designed and implemented. To this end, paired comparisons were performed to compute the importance of each strategic goal in every phase and make prioritization accordingly.


1. Tjader, Y., May, J.H., Shang, J., Vargas, L.G. and Gao, N.,
"Firm-level outsourcing decision making: A balanced scorecardbased
analytic network process model", International Journal
of Production Economics,  Vol. 147, (2014), 614-623. 
2. De Felice, F., Petrillo, A. and Autorino, C., "Development of a
framework for sustainable outsourcing: Analytic balanced
scorecard method (a-bsc)", Sustainability,  Vol. 7, No. 7,
(2015), 8399-8419. 
3. Schniederjans, A., "Outsourcing management information
systems, IGI Global,  (2006). 
4. Sridarran, P. and Fernando, N.G., "Change management
framework to enable sustainable outsourcing of facilities
management services", Built Environment Project and Asset
Management,  Vol. 6, No. 3, (2016), 317-331. 
5. Tayauova, G., "Advantages and disadvantages of outsourcing:
Analysis of outsourcing practices of kazakhstan banks",
Procedia-Social and Behavioral Sciences,  Vol. 41, (2012),
6. Karimi, G.M.H., Elyasi, M., Abedi, J.R. And Sadeghi, Y.A.M.,
"A model for production outsourcing decisions in a
governmental organization",  Vol. 1, No. 2, (2013), 83-106. 
7. Vestre, V.H., "A critical assessment of outsourcing in the oil &
gas industry", University of Stavanger, Norway,  (2016),  
8. Somjai, S., "Advantages and disadvantages of outsourcing", The
Business and Management Review,  Vol. 9, No. 1, (2017), 157160.
9. Opresnik, D. and Taisch, M., "The conceptualization of
sustainability in operations management", Procedia CIRP,  Vol.
29, (2015), 532-537. 
10. Kaplan, R.S., Kaplan, R.E., Norton, D.P., Davenport, T.H. and
Norton, D.P., "Strategy maps: Converting intangible assets into
tangible outcomes, Harvard Business Press,  (2004). 
11. Bertea, E. and ZAIŢ, P.A., "Scale validity in exploratory stages
of research", Management and Marketing Journal,  Vol. 11,
No. 1, (2013), 38-46. 
12. Rezaian, A. and Naeiji, M.J., "Strategic entrepreneurship and
intellectual capital as determinants of organizational
performance: Empirical evidence from iran steel industry",
Journal of Global Entrepreneurship Research,  Vol. 2, No. 1,
(2012), 3-16. 
13. Cram, W.A., "Success factors for information systems
outsourcing: A meta-analysis", AMCIS 2009 Proceedings, 
(2009), San Francisco. 
14. Yalaho, A. and Nahar, N., "Key success factors for managing
offshore outsourcing of software production using the ictsupported
unified process model: A case experience from
finland, india, nepal and russia", in PICMET 2010 Technology
Management For Global Economic Growth, IEEE., (2010), 114.
15. Akbari, M., "Factors affecting outsourcing decisions in iranian
industries", Victoria University,  (2013),  
16. Gasparėnienė, L., Remeikienė, R. and Startienė, G., "Factors
determining employment outsourcing in public and private
sectors", Inžinerinė ekonomika,  Vol. 25, No. 2, (2014), 203210.
17. Gunasekaran, A., Irani, Z., Choy, K.-L., Filippi, L. and
Papadopoulos, T., "Performance measures and metrics in
outsourcing decisions: A review for research and applications",
International Journal of Production Economics,  Vol. 161,
(2015), 153-166. 
18. MacKerron, G., Kumar, M., Benedikt, A. and Kumar, V.,
"Performance management of suppliers in outsourcing project:
Case analysis from the financial services industry", Production
Planning & Control,  Vol. 26, No. 2, (2015), 150-165. 
19. Hayler, D., "Exploring outsourcing as a source of competitive
advantage", Kingston University,  (2015),  
20. Delen, G., Peters, R., Verhoef, C. and Van Vlijmen, S., "Lessons
from dutch it-outsourcing success and failure", Science of
Computer Programming,  Vol. 130, (2016), 37-68. 
21. Yaghmaie, F., "Content validity and its estimation", Journal of
Medical Education,  Vol. 3, No. 1, (2003).