A Fuzzy Logic Approach for Corporate Performance Evaluation

Abstract

Today’s brutal competition environment has made it a necessity for businesses to evaluate their performance in order to maintain their existence and gain sustainable competitive advantage. The current environment does not allow businesses that do not perform performance evaluations a chance to survive. Therefore, corporate performance evaluation is a multi-criteria, complex and uncertain real-life problem that is vital for businesses. Corporate performance should be measured multi-dimensionally, but performance indicators of these dimensions may not always be expressed with a numerical value or may have uncertainty. In this case, the closest results are obtained by using fuzzy logic. Based on the current importance of the subject, a fuzzy model has been developed for the evaluation of corporate performance in this study. The outputs of the model are total enterprise performance, corporate reputation and financial output. Although the number of inputs used for each output varies, the inputs used in the model are the environment, customers, society, government, competitors, suppliers, business processes and sustainability. The application of the model is demonstrated with a case study using the fuzzy logic toolbox of the MATLAB program. Performance values for “Total Enterprise Performance”, “Corporate Reputation” and “Financial Output” were obtained as 16.9, 16.9 and 20.8, respectively. © 2024, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.