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Applying Fuzzy AHP and TOPSIS Method to Identify Key Organizational Capabilities

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  • Tsung-Yu Chou

    (Department of Distribution Management, National Chin-Yi University of Technology, Taichung 41170, Taiwan)

  • Yen-Ting Chen

    (Department of Distribution Management, National Chin-Yi University of Technology, Taichung 41170, Taiwan)

Abstract

Core competency is the basis of promoting a competitive advantage for any organization; this study aims to establish an objective and systematic assessment model for companies to identify their capabilities. This model will not only assist companies in understanding their own capabilities but will also allow them to compare their performance with that of main competitors to strengthen their competitiveness. The analysis process involved a combination of the fuzzy analytic hierarchy process, fuzzy linguistic value, and the ideal and anti-ideal concept. An objective and systematic model was first developed, which underwent empirical analysis using data from the top three home delivery companies in Taiwan. It was found that “Basic organizational competencies” and “Special competitive competencies” were the two key categories for the home delivery industry. Moreover, “Service price”, “On-time delivery”, and “Secure delivery” were found to be the three most important capabilities needed for home delivery companies. The results showed that the model is able to effectively assist organizations in constructing or assessing their organizational capabilities; in addition, organizations can adjust their service profiles to adapt to today’s turbulent business environment and rapidly changing consumer demands.

Suggested Citation

  • Tsung-Yu Chou & Yen-Ting Chen, 2020. "Applying Fuzzy AHP and TOPSIS Method to Identify Key Organizational Capabilities," Mathematics, MDPI, vol. 8(5), pages 1-16, May.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:5:p:836-:d:361121
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    References listed on IDEAS

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