Measuring and evaluating multidimensional performance using the TOPSIS model based on the integration of the Balanced Scorecard and budgeting. (A case study of a sample of companies listed on the ISX)

Abstract

Purpose –This study aims to evaluate the performance of companies using the topsis method based on the dimensions of the BSc and the estimated budget, and then explore the effect of integrating the Balanced Scorecard (BSC) and the budget on sustainable performance in the companies under study, while studying the role of the effectiveness of AIS as an intervening variable in this relationship..

Design/Methodology – The study relied on the topsis method to evaluate companies, while the study of the relationship between variables relied on the descriptive analytical method. Financial data for ten years, from 2014 to 2024, was used. Path analysis and structural equation modeling (SEM) were employed using AMOS software, with the Bootstrap method used to estimate direct and indirect effects. The study also used a structured questionnaire that was distributed to a selected sample of managers and accountants working in the selected companies.

Results – The study demonstrated that integrating the BSC with budgeting has a strong positive impact on sustainable performance (beta = 0.523). This impact is clearly evident in the Iraqi Carpet and Furniture Company's leading position with an efficiency index (Ci = 0.69) in the TOPSIS analysis. This result supports the company's ability to link budget resources to tangible strategic outputs. The weakness of AIS in companies with low indicators (0.14) hinders their ability to reach optimal solutions. Effective sustainable performance is not the product of isolated financial planning, but rather the result of a robust information infrastructure that acts as a "key intermediary" linking long-term goals to operational results.