Improving China’s Regional Financial Center Modernization Development Using a New Hybrid Madm Model

Abstract

Abstract. The regional financial center is the propeller of regional economic development. Regional financial center modernization, however, has been the predominant propulsion of economic sustainability. Decisions related to regional financial center modernization development are inherent problems of multiple attribute decision-making (MADM), and strategically important to the government. The purpose of this paper is to set up a regional financial center improvement model for modernization development, as based on a hybrid MADM model, which addresses the main causal-effect factors and amended priorities in order to strengthen ongoing planning. This paper adopts a new hybrid MADM model combined with the DEMATEL technique to construct an influential network relationship map (INRM) and determined the influential weights of DANP. Then, a modified VIKOR method using influential weights is applied to measure and integrate the performance gaps from each criterion into dimensions, as well as the overall criterion for evaluating and improving the modernization development of the regional financial center, as based on INRM. Finally an empirical case study using data from the Guangzhou regional financial center is carried out as an example to demonstrate the suitability of the proposed hybrid MADM model for solving real-world problems. The results show the priorities for improvement, as based on the degree of the effect and impact of the dimensions, as follows: first is making "government policy", second is enforcing "financial infrastructure and safety", next is formulating "financial institutions and human resources", and finally "financial service".

Multicriteria Decision Analysis to Develop Effective Sustainable Development Strategies for Enhancing Competitive Advantages: Case of the TFT-LCD Industry in Taiwan

“…The modified VIKOR method was then used to calculate the ratio of the gap between the real performance kj f and the aspiration level Finally, the problems of each program were determined through the modified VIKOR method (If the gap value of a criterion is larger, the problems are more acute and should receive priority for improvement). The INRM was applied to determine the crux criterion through path analysis of influential directions among criteria to identify the cause of the problem and to determine how to formulate improvement strategies through systematics [29] to avoid the "stop-gap piecemeal practice" [30,31,33,[92][93][94][95].…”

“…The global weights can also be obtained using the influence relation matrix through these hybrid methods [28]. Because the influence level is a characteristic of the weights, this study referred to these as the IWs of DANP [28][29][30][31][32][33][92][93][94][95]. The modified VIKOR method was then used to calculate the ratio of the gap between the real performance f kj and the aspiration level f aspired j in the alternative k pk " 1, 2, ..., Kq of criterion j pj " 1, 2, ..., nq; that is r kj " p| f aspired j´f kj |q{p| f aspired j´f worst j |q such that the calculations of the IWs are integrated among various programs.…”

“…The fourth phase entailed developing the most effective sustainable improvement strategies for enhancing competitive advantages in the TFT-LCD industry. The gaps can be calculated using the modified VIKOR method, which entails considering each absolute distance between performance values and adopting the aspiration level and worst value, called "aspired-worst", as benchmarks [80][81][82][83]85,[93][94][95][96], rather than using the relative distance and adopting positive and negative ideal points, called "max-min", as the benchmarks as in the conventional VIKOR method [86][87][88][93][94][95][96]. Accordingly, the phase involved solving problems through the modified VIKOR programs in the problem criteria; the INRM was then used to identify the crux of the criteria (the criteria on the impact of the problem criteria).…”

Improving Strategic Orientations for Promoting Hotel Services Using an Integrated Rough Magdm Model

“…The DEMATEL is integrated with the basic concepts of ANP to obtain a set of influential weights for each criterion/dimension. The calculation process employed in the rough DANP approach is derived from the DEMATEL technique and ANP method concepts, but for data processing the rough number technique is used (Chen, Tzeng, & Huang, 2018;Hu, Jianguo, & Tzeng, 2018;Lu et al, 2018). The detailed mathematical formulations are presented in Appendix B.2.…”

Multiple Criteria Group Decision-Making Considering Symmetry with Regards to the Positive and Negative Ideal Solutions via the Pythagorean Normal Cloud Model for Application to Economic Decisions

“…Decision-making is an important issue in the domain of economics and society in general [1,2], ass human input and interaction are often the decisive elements of the decision-making. Accordingly, expressing and handling cognitive information has been a focal topic related to the decision-making literature.…”