A Novel Integrated Subjective-Objective MCDM Model for Alternative Ranking in Order to Achieve Business Excellence and Sustainability

Abstract

Achieving sustainability in constant development in every area in today’s modern business has become a challenge on the one hand, and an imperative on the other. If the aspect of business excellence achievement is also added to it, the complexity of the system increases significantly, and it is necessary to model a system considering several parameters and satisfying the multi-criteria function. This paper develops a novel integrated model that involves the application of a subjective-objective model in order to achieve business sustainability and excellence. The model consists of fuzzy PIPRECIA (fuzzy pivot pairwise relative criteria importance Assessment) as a subjective method, CRITIC (criteria importance through intercriteria correlation) and I-distance method as objective methods. The goal is to take the advantages of these approaches and allow for more accurate and balanced (symmetric) decision-making through their integration. The integrated subjective-objective model has been applied in a narrow geographical area to consider and evaluate banks as a significant factor in improving the social aspect of sustainability. An additional contribution of the paper is a critical overview of multi-criteria problems in which the levels of the hierarchical structure contain a different (asymmetric) number of elements. A specific example has also been used to prove that only a hierarchical structure with an equal number of lower-level elements provides precise weights of criteria in accordance with the preferences of decision-makers referring to subjective models. The results obtained are verified throughout the calculation of Spearman and Pearson correlation coefficients, and throughout a sensitivity analysis involving a dynamic reverse rank matrix.

Implementing Fuzzy AHP and FUCOM to evaluate critical success factors for sustained academic quality assurance and ABET accreditation

“…The consistency ratios for all four variables’ set are less than 0.1, hence shows acceptable consistency in the judgments of decision makers, Table 8 . The hierarchical structure proposed in Fig 2 is not homogenous such that the number of sub-criteria at second level is not same under each dimensions and will lead to unfair global weights [ 98 ]. Therefore, the CSFs, SM and PVMO in PDE dimension, having the lowest weights of 0.0689 and 0.1171 have been dropped and the sum of their weights have been distributed equally to other three CSFs namely SLM, CD and CQI, Table 9 .…”

Evaluation of Criteria for the Implementation of High-Performance Computing (HPC) in Danube Region Countries Using Fuzzy PIPRECIA Method

“…This method was integrated into Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to obtain values of each SWOT dimension. Marković et al [40] showed that fuzzy PIPRECIA as a subjective Multi-Criteria Decision-Making (MCDM) method can be very successfully applied in integration with other objective methods, such as Criteria Importance Through Intercriteria Correlation (CRITIC). They used an integrated model for the ranking banks in order to achieve business excellence and sustainability.…”

The Impact of ICT Support and the EFQM Criteria on Sustainable Business Excellence in Higher Education Institutions

“…SBE represents a concept with many influencing factors: participation, motivation, professional staff training, a focus on customers, strategic planning, a focus on innovation and continuous improvement, leadership, process management, and most crucially sustainable resource management [16]. As a result, SBE was the target of many researchers and professional organisations through many models, techniques and tools [17][18][19].…”