The strategic selecting criteria and performance by using the multiple criteria method

Abstract

As the increasing competitive intensity in the current service market, organizational capabilities have been recognized as the importance of sustaining competitive advantage. The profitable growth for the firms has been fueled a need to systematically assess and renew the organization. The purpose of this study is to analyze the financial performance of the firms to create an effective evaluating structure for the Taiwan's service industry. This study utilized TOPSIS (technique for order preference by similarity to ideal solution) method to evaluate the operating performance of 12 companies. TOPSIS is a multiple criteria decision making method to identify solutions from a finite set of alternatives based upon simultaneous minimization of distance from an ideal point and maximization of distance from a nadir point. By using this approach, this study measures the financial performance of firms through two aspects and ten indicators. The result indicated e-life had outstanding performance among the 12 retailers. The findings of this study provided managers to better understand their market position, competition, and profitability for future strategic planning and operational management.

Keywords

• Organizational capability
• Performance
• Competitive advantage
• TOPSIS