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About Business Decision Making by A Consistency-Driven Pairwise Comparisons Method

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Języki publikacji
EN
Abstrakty
EN
Writing this paper has been inspired by the most recent economic crises in the world. Better decision making methods are more needed now than ever before. This study presents an innovate approach to the assessment of management capability in businesses. It is based on the consistency-driven pairwise comparisons method. A proposed conceptual model of performance is flexible and adaptable to different requirements and preconditions (e.g., grant or loan applications). Considering the complexity, a hierarchical structure is used and an inconsistency analysis is performed for all the levels of the structure. The pairwise comparisons method synthesizes together performance assessments assessed at two levels (in our case; there may be more levels in general). The method of consistency-driven pairwise comparisons can be combined with other quantitative and qualitative assessment methods (including brainstorming and Delphi method). Non measurable criteria which often bypassed in other approaches, can be included in the presented model. The consistency-driven pairwise comparisons method contributes to the reliability of assessment through the consistency analysis and solid statistical studies show the accuracy improvement. The management capability merit index (MC-merit) and a procedure for computing it are introduced.
Rocznik
Strony
55--70
Opis fizyczny
Bibliogr. 19 poz.
Twórcy
autor
  • 1Laurentian University Department of Mathematics and Computer Science Ramsey Lake Road Sudbury, Ontario Canada P3E 2C6, wkoczkodaj@cs.laurentian.ca
Bibliografia
  • [1] OECD (2000), High Growth SMEs: Phase II Synthesis Report.
  • [2] OECD (2007). Organization for economic and cooperative development. OECD in Figures 2006-2007. OECD Observer, 2006/Supplement 1, p. 32.
  • [3] Boeker W., Wiltbank R. (2005) New Venture Evolution and Managerial Capabilities. Organization Science, 16(2), 123-133.
  • [4] Jungman H., Okkonen J, Rasila T, Seppai M. (2004) Use of performance measurement in V2C activity. Benchmarking, 11(2), 175-189.
  • [5] Wood EH (2006). The internal predictors of business performance in small firms: A logistic regression analysis. Journal of Small Business and Enterprise Development, 13(3), 441-453.
  • [6] Ibrahim N.A., Angelidis J.P., Faramarz P. (2004) The Status of Planning in Small Businesses. American Business Review, 22(2), 52.
  • [7] Chong S., Pervan G. (2007) Factors Influencing the Extent of Deployment of Electronic Commerce for Small-and Medium-Sized Enterprises. Journal of Electronic Commerce in Organizations, 5(1), 1-29.
  • [8] Ardichvili A., Cardozo R., Reynolds P., Williams M. (1998) The New Venture Growth: Functional Differentiation and the Need for Human Resource Development Interventions. Human Resource Development Quarterly, 9(1), 55-70.
  • [9] Koczkodaj W.W. (1993) A New Definition of Consistency of Pairwise Comparison. Mathematical and Computer Modelling, 18(7), 79-84.
  • [10] Herman M., Koczkodaj W.W. (1996) Monte Carlo Study of Pairwise Comparisons), Information Processing Letters, 57(1), pp. 25-29.
  • [11] Condorcet M. (1785) The Essay on the Application of Analysis to the Probability of Majority Decisions, Paris: Imprimerie Royale.
  • [12] Fechner G.T. (1860) Elements of PsychoPhysics, Vol. 1, New York: Holt, Inehart & Winston, 1965, translation by H.E. Adler of Elemente der Psychophysik), Leipzig: Breitkopf und Hartel.
  • [13] Thurstone L.L. (1927) A Law of Comparative Judgments, Psychological Reviews, Vol. 34, 273-286.
  • [14] Saaty T.L. (1997) A Scaling Method for Priorities in Hierarchical Structure. Journal of Mathematical Psychology, 15(3), 234-281.
  • [15] Bozóki, S., Rapcsák T., (2007) On Saaty's and Koczkodaj's inconsistencies of pairwise comparison, Journal of Global Optimization, 2007 (available online at http://www.springerlink.com/content/v2x539n054112451/, the hard copy due soon).
  • [16] Janicki R., Koczkodaj W.W. (1996) A Weak Order Approach to Group Ranking, Computers and Mathematics with Applications, 32(2), pp. 51-59.
  • [17] Chrisman J.J, Bauerschmidt A., Hofer C.W. (1999) "The Determinant of New Venture Performance: An Extended Model," Entrepreneurship Theory & Practice 23(1), 5-29.
  • [18] Industry Canada, (2008). Key Small Business Statistics, www.strategis.gc.ca/sbstatistics, information retrieved March 16, 2008.
  • [19] Koczkodaj W.W. (1996) Statistically Accurate Evidence of Improved Error Rate by Pairwise Comparisons. Perceptual and Motor Skills, 82, 43-48.
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.baztech-article-LOD9-0009-0005
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