A Hybrid Multi-Criteria Decision Model for Technological Innovation Capability Assessment: Research on Thai Automotive Parts Firms
AbstractThe efficient appraisal of technological innovation capabilities (TICs) of enterprises is an important factor to enhance competitiveness. This study aims to evaluate and rank TICs evaluation criteria in order to provide a practical insight of systematic analysis by gathering the qualified experts’ opinions combined with three methods of multi-criteria decision making approach. Firstly, Fuzzy Delphi method is used to screen TICs evaluation criteria from the recent published researches. Secondly, the Analytic Hierarchy Process is utilized to compute the relative important weights. Lastly, the VIKOR method is used to rank the enterprises based on TICs evaluation criteria. An empirical study is applied for Thai automotive parts firms to illustrate the proposed methods. This study found that the interaction between criteria is essential and influences TICs; furthermore, this ranking development of TICs assessment is also one of key management tools to simply facilitate and offer a new mindset for managements of other related industries.
R. Burgelman, M. A. Maidique, and S.C. Wheelwright, In: Strategic Management of Technology and Innovation, New York: McGraw-Hill, 2001.
J. Prašnikar, M. Lisjak, A. J. Buhovac, and M. Štembergar, “Identifying and exploiting the inter relationships between technological and marketing capability,” Long-Range Planning, vol. 41, pp. 530-554, 2008.
C. H. Wang, I. Y. Lu, and C. B. Chen, “Evaluating firm technological innovation capability under uncertainty,” Technovation, vol. 28, pp. 349-363, 2008.
M. L. Tseng, J. H. Chiang, and L. W. Lan, “Selection of optimal supplier in supply chain management strategy with analytic network process and choquet integral,” Computer & Industrial Engineering, vol. 57, pp. 330-340, August 2009.
M. L. Tseng, “Using a hybrid MCDM model to evaluate firm environmental knowledge management in uncertainty,” Applied Soft Computing, vol. 11, pp. 1340-1352, 2011.
S. Opricovic and G. H. Tzeng, “Compromise solution by MCDM methods: a comparative analysis of VIKOR and TOPSIS,” European Journal of Operational Research, vol. 156, pp. 445–455, 2007.
D. Gamal, “How to measure organization innovativeness?: An overview of Innovation measurement frameworks and Innovative Audit/ Management tools,” Technology Innovation and Entrepreneurship Center, Egypt Innovate, pp. 1-35, 2011.
A. Rangone, “A resource-based approach to strategy analysis in small-medium sized enterprises,” Small Business Economics, vol. 12, pp. 233-248, May 1999
B. Lawson and D. Samson, “Developing innovation capability in organizations: a dynamic capabilities approach,” International Journal of Innovation Management, vol. 5, pp. 377-400, September 2001.
J. Guan and N. Ma, “Innovative capability and export performance of Chinese firms,” Technovation, vol. 23, pp. 737-747,
J. C. Guan, R. C. M. Yam, C. K., Mok, and N. Ma, “A study of the relationship between competitiveness and technological innovation capability based on DEA model,” European Journal of Operational Research, vol. 170, pp. 971- 986, 2006.
D. I. Prajogo and P. K. Ahmed, “Relationships between innovation stimulus, innovation capacity, and innovation performance,” R&D Management, vol. 36, pp. 499-515, November 2006.
V. Chiesa, P. Coughlan, and C. A. Voss, “Development of a technical innovation audit,” Journal of Product Innovation Management, vol. 13, pp. 105-136, March 1996.
J. Tidd, J. Bessant, and K. Pavitt, Managing Innovation: Integrating Technological, Market and Organizational Change, Chichester: John Wiley & Sons Inc., 2001.
M. K. Badawy, A Research Architecture for Technology Management Education. A Three Volume Handbook of Technology Management: Key Concepts, Financial Tools and Techniques. Operational and Innovation Management, New York: Wiley, 2010.
R. C. M Yam, W. Lo, E. P. Y. Tang, and A. K. W. Lau, “Analysis of sources of innovation, technological innovation capabilities, and performance: an empirical study of Hong Kong manufacturing industries,” Research Policy, vol. 40, pp. 391-402, 2011.
T. Murry, L. Pipino, and J. Gigch, “A pilot study of fuzzy set modification of Delphi,” Human Systems Management, vol. 5, pp. 76-80, 1985.
A. Ishikawa, M. Amagasa, T. Shiga, G. Tomizawa, R. Tatsuta, and H. Mieno, “The max-min Delphi method and fuzzy Delphi method via fuzzy integration,” Fuzzy Sets and Systems, vol. 55, pp. 241-253, 1993.
P. C. Chang and Y. W. Wang, “Fuzzy Delphi and back-propagation model for sales forecasting in PCB industry,” Expert Systems with Applications, vol. 20, pp. 715-726, May. 2006.
Y. F. Kuo and P. C. Chen, “Constructing performance appraisal indicators for mobility of the service industries using Fuzzy Delphi Method,” Expert Systems with Applications, vol. 35, pp. 1930-1939, November 2008.
D. Damigos and F. Anyfantis, “The value of view through the eyes of real estate experts: a Fuzzy Delphi Approach,” Landscape and Urban Planning, vol. 101, pp. 171-178, May 2011.
P. L. Chang, C. W. Hsu, and P. C. Chang, “Fuzzy Delphi method for evaluating hydrogen production technologies,” International Journal of Hydrogen Energy, vol. 36, pp. 14172-14179, October 2011.
Z. Ma, C. Shao, S. Ma, and Z. Ye, “Constructing road safety performance indicators using Fuzzy Delphi Method and Grey Delphi Method,” Expert Systems with Applications, vol. 38, pp. 1509-1514, March 2011.
R. Mikaeil, Y. Ozcelik, R. Yousefi, M. Ataei, and S. M. Hosseini, “Ranking the sawability of ornamental stone using Fuzzy Delphi and multi-criteria decision-making techniques,” International Journal of Rock Mechanics & Mining Sciences, vol. 58, pp. 118-126, February 2013.
S. K. Prusty. K. J. Mohapatra, and C. K. Mukherjee, “GOS tree (Goal-Objective-Strategy tree) approach to strategic planning using a fuzzy-Delphi process: An application to the Indian Shrimp Industry,” Technological Forecasting & Social Change, vol. 77, pp. 442-456, March 2010.
N. Noorderhaben, Strategic decision making, UK: Addison-Wesley, 1995.
G. Klir and G. Yuan, Fuzzy sets and fuzzy logic-Theory and application, New Jersey: Prentice-Hall Inc., 1995.
E. Karami, “Appropriateness of farmers’ adoption of irrigation methods: The application of the AHP model,” Agricultural Systems, vol. 87, pp. 101-119, January 2006.
L. A. Vidal, E. Sahin, N. Martelli, M. Berhoune, and B. Bonan, “Applying AHP to select drugs to be produced by anticipation in a chemotherapy compounding unit,” vol. 37, pp. 1528-1534, March 2010.
Y. Dong, G. Zhang, W. C. Hong, and Y. Xu, “Consensus models for AHP group decision making under row geometric mean prioritization method,” vol. 49, pp. 281-289, June 2010.
L. A. Vidal, F. Marle, and J. C. Bocquet, “Using a Delphi process and the Analytic Hierarchy Process (AHP) to evaluate the complexity of projects,” vol. 38, pp. 5388-5405, May 2011.
A. Görener, K. Toker, and K. Uluçay, “Application of combined SWOT and AHP: a case study for a manufacturing firm,” vol. 58, pp. 1525-1534, October 2012.
T. L. Saaty, “On polynomials and crossing numbers of complete graphs,” Journal of Combinatorial Theory, vol. 10, pp. 183-184, 1971.
S. Opricovic, “Multicriteria Optimization of Civil Engineering Systems,” Faculty of Civil Engineering, Belgrade, 1998.
S. Opricovic and G. H. Tzeng, “Extended VIKOR method in comparison with outranking methods,” European Journal of Operational Research, vol. 178, pp. 514–529, April 2007.
P. L. Yu, “A class of solutions for group decision problems,” Management Science, vol. 19, pp. 936–946, April 1973.
M. Zeleny, Multiple criteria decision making, New York: McGraw-Hill, 1982.
J-R. S. Cristóbal, “Multi-criteria decision-making in the selection of a renewable energy project in spain: The Vikor method,” Renewable Energy, vol. 36, pp. 498-502, February 2011.
W. H. Tsai, W.C. Chou, and J. D. Leu, “An effectiveness evaluation model for the web-based marketing of the airline industry,” Expert Systems with Applications, vol. 38, pp. 15499-15516, November-December 2011.
A. R. Fallahpour, and A. R. Moghassem, “Evaluating Applicability of VIKOR method of multi-criteria decision making for parameters selection problem in rotor spinning,” Fibers and Polymers, vol. 13, pp. 802–808, July 2012.
P. Liu and X. Wu, “A competency evaluation method of human resources managers based on multi-granularity linguistic variables and VIKOR method,” Technological and Economic Development of Economy, vol. 18, pp. 696–710, December 2012.
H. Y. Wu, J. K. Chen, I. S. Chen, and H. H. Zhuo, “Ranking universities based on performance evaluation by a hybrid MCDM model,” Measurement, vol. 45, pp. 856–880, 2012.
W. Y. Chiu, G. H. Tzeng, and H.L. Li, “A new hybrid MCDM model combining DANP with VIKOR to improve e-store business,” Knowledge-Based Systems, vol. 37, pp. 48-61, January 2013.
L. Duckstein and S. Opricovic, “Multi-objective optimization in river basin development,” Water Resources Research vol.16, pp. 14–20, 1980.
S. Opricovic and G. H. Tzeng, “Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS,” European Journal of Operational Research, vol. 156, pp. 445–455, July 2004.
G. H. Tzeng, C. W. Lin and S. Opricovic, “Multi-criteria analysis of alternative-fuel buses for public transportation,” Energy Policy, vol. 33, pp. 1373–1383, July 2005.
M. Freimer and P.L. Yu, “Some new results on compromise solutions for group decision problems,” Management Science, vol. 22, pp. 688–693, February 1976.
P. L. Yu, “A class of solutions for group decision problems,” Management Science, vol. 19, pp. 936–946, April 1973.
V. Chiesa, R&D strategy and organization: Managing technical change in dynamic contexts, Series on technology management, London: Imperial College Press, 2001.
D. I. Prajogo and A. S. Sohal, “The integration of TQM and technology/R&D management in determining quality and innovation performance,” Omega, vol. 34 pp. 296-312, June 2006.
T. Koc and C. Ceylan,“ Factors impacting the innovative capacity in large-scale companies,” Technovation, vol. 27, pp. 105-114, March 2007.
S. Y. Wong and K. S. Chin, “Organizational innovation management: An organization-wide perspective,” Industrial Management and Data Systems, vol. 107, pp.1290–1315, 2007.
T. C. Wong, S. Y. Wong, and K. S. Chin, “A neural network-based approach of quantifying relative importance among various determinants toward organizational innovation,” Expert Systems with Applications, vol. 38, pp. 13064–13072, 2011.
A. M. Kantrow, “The strategy–technology connection,” Harvard Business Review, vol. 58, pp. 13-21, July 1980.
S. D. Anthony, M. Eyring, and L. Gibson, “Mapping your innovation strategy,” Harvard Business Review, vol. 84, pp. 104-113, May 2006.
M. Amer and T. U. Daim, “Application of technology roadmaps for renewable energy sector,” Technological Forecasting & Social Change, vol. 77, pp. 1355–1370, 2010.
K. J. Klein and A. P. Knight, “Innovation implementation -overcoming the challenge,” Current Directions in Psychological Science, vol. 14, pp. 243–246, 2005.
N. O’Regan, A. Ghobadian, and M. Sims, “Fast tracking innovation in manufacturing SMEs,” Technovation, vol. 26, pp. 251–261, 2006.
A. Grinstein and A. Goalman, “Characterizing the technology firm: An exploratory study,” Research Policy, vol. 35, pp. 121-143, February 2006.
L. P. Kyrgidou and S. Spyropoulou, “Drivers and Performance Outcomes of innovativeness: An Empirical Study,” British Journal of Management, January 2012.
D. Wan, H. O. Chin, and F. Lee, “Determinants of firm innovation in Singapore,” Technovation, vol. 25, pp. 261-268, March 2005.
C. B. Dobni, “Measuring innovation culture in organizations. The development of a generalized innovation culture construct using exploratory factor analysis,” European Journal of Innovation Management, vol. 11, pp. 539-559, 2008.
M. V. Türker, “A model proposal oriented to measure technological innovation capabilities of business firms – a research on automotive industry,” Procedia - Social and Behavioral Sciences, vol. 41, pp. 147-159, 2012.
I. Nonaka and H. Takeuchi, The Knowledge-Creating Company: How Japanese companies create the dynamics of innovation, New York: Oxford University Press, 1995.
M. L. Tushman and P. Anderson (Eds.), Managing Strategic Innovation and Change: A Collection of Readings, Oxford: Oxford University Press, 1997.
D. J Teece, Managing Intellectual Capital, Oxford University Press: Oxford, 2000.
J. Jansen, F. Van den Bosch, and H. Volberda, “Managing potential and realized absorptive capacity: How do organizational antecedents matter,” The Academy of Management Journal, vol. 48, pp. 999-1015, December 2005.
K. Z. Zhou, and F. Wu, “Technological Capability, Strategic Flexibility, and Product Innovation,” Strategic Management Journal, vol. 31, pp. 547-561, 2010.
J. Mu and C. A. D. Benedetto, “Strategic orientations and new product commercialization: mediator, moderator, and interplay,” R&D Management, vol. 41, pp. 337-359, 2011.
H. Forsman, “Innovation capacity and innovation development in small enterprise. A comparison between the manufacturing and service sector,” Research Policy, vol. 40, pp. 739-750, June 2011.
J. Chen, Y. Chen, and W. Vanhaverbeke, “The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms,” Technovation, vol. 31, pp. 362–373, August 2011.
C. Grimpe and U. Kaiser, “Balancing internal and external knowledge acquisition: the gains and pains from R&D outsourcing,” Journal of Management Studies, vol. 47, pp. 1484–1509, 2010.
M. Freel and J. D. Jong, “Market novelty, competence seeking and innovation networking,” Technovation, vol. 29, pp. 873–884, Dec. 2009.
J. L. Lin, S. C. Fang, S. R. Fang, and F. S. Tsai, “Network embeddedness and technology transfer performance in R&D consortia in Taiwan,” Technovation, vol. 29, pp. 763–774, November 2009. F. T. Rothaermel and M. T. Alexandre, “Ambidexterity in technology sourcing: the moderative role of absorptive capacity,” Organization Science, vol. 20, pp. 759–780, July-August 2009.
V. Chanal, “Innovation management and organizational learning: a discursive approach,” European Journal of Innovation Management, vol. 7, pp. 56-64, 2004.
C. Camisón and B. Forés, “Knowledge absorptive capacity: New insights for its conceptualization and measurement,” Journal of Business Research, vol. 63, pp. 707–715, 2010.
T. Biedenbach and R. Müller, “Absorptive, innovative and adaptive capabilities and their impact on project and project portfolio performance,” International Project Management, vol. 30, pp. 621-635, 2012.
A. Carneiro, “How does knowledge management influence innovation and competitiveness?,” Journal of Knowledge Management, vol. 4, pp. 87-98, 2000.
S. Rodan, “Innovation and heterogeneous knowledge in managerial contact networks,” Journal of Knowledge Management, vol. 6, pp.153-163, 2002.
S. Ghazinoory and M. Farazkish, “Model of technology strategy development for Iranian Nano-Composite companies,” Technology and economic development of economy, vol. 16, pp. 25-42, 2010.
B. W. Lin, “Original equipment manufacturers (OEM) manufacturing strategy for network innovation agility: the case of
Taiwanese manufacturing networks,” International Journal Production Research, vol. 42, pp. 943–957, 2004.
K. K. Kim, B. G. Lee, B. S. Park, and K. S. Oh, “The effect of R&D, technology commercialization capabilities and innovation performance,” Technological and Economic Development of Economy, vol. 17, pp. 563-578, 2011.
K. N. Dervitsiotis, “A framework for the assessment of an organization’s innovation excellence,” Total Quality Management, vol. 21, pp. 903–918, 2010.
C. Camisón and A. Villar-López, “Organizational innovation as an enabler of technological innovation capabilities and firm performance,” Journal of Business Research, 2012, in press.
R. Adams, J. Bessant, and R. Phelps, “Innovation management measurement: A review,” International Journal of Management Reviews, vol. 8, pp. 21-47, March 2006.
A. De Toni, and G. Nassimbeni, “A method for the evaluation of suppliers’ co- design effort,” International Journal of Production Economics, vol. 72, pp. 169-180, July 2001.
G. Nassimbeni and F. Battain, “Evaluation of supplier contribution to product development: fuzzy and neuro-fuzzy based
approaches,” International Journal of Production Research, vol. 41, pp. 2933-2956, 2003.
Y. C. Ho, H. C. Fang, and J. F. Lin, “Technological and design capabilities: is ambidexterity possible?,” Management Decision, vol. 49, pp. 208- 225, 2011.
R. C. M. Yam, J. C. Guan, K. F. Pun, and P. Y. Tam, “An audit of technological innovation capabilities in Chinese firms: some empirical findings in Beijing, China,” Research Policy, vol. 33, pp. 1123-1250, July 2004.
L. R. Yang, “Key practices, manufacturing capability and attainment of manufacturing goals: The perspective of project/engineer-to-order manufacturing,” International Journal of Project Management, vol. 31, pp. 109-125, January 2013.
Copyright (c) 2016 International Journal of Engineering and Technology Innovation
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Submission of a manuscript implies: that the work described has not been published before that it is not under consideration for publication elsewhere; that if and when the manuscript is accepted for publication. Authors can retain copyright in their articles with no restrictions. Also, author can post the final, peer-reviewed manuscript version (postprint) to any repository or website.
Since Jan. 01, 2019, IJETI will publish new articles with Creative Commons Attribution Non-Commercial License, under Creative Commons Attribution Non-Commercial 4.0 International (CC BY-NC 4.0) License.
The Creative Commons Attribution Non-Commercial (CC-BY-NC) License permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.