IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i14p5871-d1432165.html
   My bibliography  Save this article

A Framework for Assessing Innovations, Business Models and Sustainability for Software Companies Using Hybrid Multiple-Criteria Decision-Making

Author

Listed:
  • Witold Torbacki

    (Faculty of Economics and Transport Engineering, Maritime University of Szczecin, 70-507 Szczecin, Poland)

Abstract

The management staff of software companies are constantly looking for ways to build market advantage and win business strategies. Introducing changes in companies is a costly process and carries the risk of poor allocation of resources. This article provides decision-makers with a tool that increases the chance of making the right business decisions and can also be a guide in the transformation of business models. The scientific aim of this article was to simultaneously cover three areas, innovation, business models, and sustainable development, to develop a scheme enabling the construction of rankings of the elements of these areas in a version dedicated to software producing companies. Rankings, which are built using the hybrid Multiple-Criteria Decision-Making (MCDM) method, indicate to decision-makers the need for building strategic development plans, which aspects are the most important, and what the order of possible implementations should be. Based on a multi-criteria analysis, it was found that (i) in terms of innovation, companies should focus their attention first on implementing product, process, and technological innovations; (ii) within innovative business models, attempts should be made to produce IT systems using virtualization and dockerization, as well as efforts should be made to closely bind customers with the offered products and services and offer temporary rental of IT systems instead of classic licenses; and (iii) in the context of the classic three levels of sustainable development, companies should focus primarily on economic and financial issues.

Suggested Citation

  • Witold Torbacki, 2024. "A Framework for Assessing Innovations, Business Models and Sustainability for Software Companies Using Hybrid Multiple-Criteria Decision-Making," Sustainability, MDPI, vol. 16(14), pages 1-25, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5871-:d:1432165
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/14/5871/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/14/5871/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malone, Thomas & Weill, Peter & Lai, Richard & D'Urso, Victoria & Herman, George & Apel, Thomas & Woerner, Stephanie, 2006. "Do Some Business Models Perform Better than Others?," MPRA Paper 4751, University Library of Munich, Germany.
    2. Huotari, Pontus & Ritala, Paavo, 2021. "When to switch between subscription-based and ad-sponsored business models: Strategic implications of decreasing content novelty," Journal of Business Research, Elsevier, vol. 129(C), pages 14-28.
    3. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Papadopoulos, Thanos & Luo, Zongwei & Wamba, Samuel Fosso & Roubaud, David, 2019. "Can big data and predictive analytics improve social and environmental sustainability?," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 534-545.
    4. Sinha, Avik & Sengupta, Tuhin & Alvarado, Rafael, 2020. "Interplay between Technological Innovation and Environmental Quality: Formulating the SDG Policies for Next 11 Economies," MPRA Paper 104247, University Library of Munich, Germany, revised 2020.
    5. Mahotra, Arvind & Majchrzak, Ann, 2024. "Digital innovations in crowdsourcing using AI tools," Technovation, Elsevier, vol. 133(C).
    6. Haftor, Darek. M. & Climent Costa, Ricardo, 2023. "Five dimensions of business model innovation: A multi-case exploration of industrial incumbent firm’s business model transformations," Journal of Business Research, Elsevier, vol. 154(C).
    7. Calik, Eyup, 2024. "A validated measurement scale for sustainable product innovation performance," Technovation, Elsevier, vol. 129(C).
    8. Li, Xin & Balasubramanian, Hari & Chen, Yan & Pang, Chuan, 2024. "Managing conflicting revenue streams from advertisers and subscribers for online platforms," European Journal of Operational Research, Elsevier, vol. 314(1), pages 241-254.
    9. Rammer, Christian, 2023. "Measuring process innovation output in firms: Cost reduction versus quality improvement," Technovation, Elsevier, vol. 124(C).
    10. Dwivedi, Abhishek & Pawsey, Nicholas, 2023. "Examining the drivers of marketing innovation in SMEs," Journal of Business Research, Elsevier, vol. 155(PB).
    11. Behzadian, Majid & Kazemzadeh, R.B. & Albadvi, A. & Aghdasi, M., 2010. "PROMETHEE: A comprehensive literature review on methodologies and applications," European Journal of Operational Research, Elsevier, vol. 200(1), pages 198-215, January.
    12. Oliver Gassmann & Karolin Frankenberger & Michaela Csik, 2014. "Revolutionizing the Business Model," Springer Books, in: Oliver Gassmann & Fiona Schweitzer (ed.), Management of the Fuzzy Front End of Innovation, edition 127, pages 89-97, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karasoy, Alper, 2022. "Is innovative technology a solution to Japan's long-run energy insecurity? Dynamic evidence from the linear and nonlinear methods," Technology in Society, Elsevier, vol. 70(C).
    2. Marwa Hannouf & Getachew Assefa, 2018. "A Life Cycle Sustainability Assessment-Based Decision-Analysis Framework," Sustainability, MDPI, vol. 10(11), pages 1-22, October.
    3. Corrente, Salvatore & Figueira, José Rui & Greco, Salvatore, 2014. "The SMAA-PROMETHEE method," European Journal of Operational Research, Elsevier, vol. 239(2), pages 514-522.
    4. Zhang, Tianyu & Dong, Peiwu & Zeng, Yongchao & Ju, Yanbing, 2022. "Analyzing the diffusion of competitive smart wearable devices: An agent-based multi-dimensional relative agreement model," Journal of Business Research, Elsevier, vol. 139(C), pages 90-105.
    5. Su, Dan & Zhang, Lijun & Peng, Hua & Saeidi, Parvaneh & Tirkolaee, Erfan Babaee, 2023. "Technical challenges of blockchain technology for sustainable manufacturing paradigm in Industry 4.0 era using a fuzzy decision support system," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    6. Kokaraki, Nikoleta & Hopfe, Christina J. & Robinson, Elaine & Nikolaidou, Elli, 2019. "Testing the reliability of deterministic multi-criteria decision-making methods using building performance simulation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 991-1007.
    7. Sharma, Rajesh & Shahbaz, Muhammad & Sinha, Avik & Vo, Xuan Vinh, 2021. "Examining the temporal impact of stock market development on carbon intensity: Evidence from South Asian countries," MPRA Paper 108925, University Library of Munich, Germany, revised 2021.
    8. Xu, Deyi & Sheraz, Muhammad & Hassan, Arshad & Sinha, Avik & Ullah, Saif, 2022. "Financial development, renewable energy and CO2 emission in G7 countries: New evidence from non-linear and asymmetric analysis," Energy Economics, Elsevier, vol. 109(C).
    9. Haiqian Ke & Wenyi Yang & Xiaoyang Liu & Fei Fan, 2020. "Does Innovation Efficiency Suppress the Ecological Footprint? Empirical Evidence from 280 Chinese Cities," IJERPH, MDPI, vol. 17(18), pages 1-23, September.
    10. Thanh Quang Nguyen & Sonia Longo & Maurizio Cellura & Le Quyen Luu & Alessandra Bertoli & Letizia Bua, 2024. "Evaluating and Prioritizing Circular Supply Chain Alternatives in the Energy Context with a Holistic Multi-Indicator Decision Support System," Energies, MDPI, vol. 17(20), pages 1-32, October.
    11. Caglar, Abdullah Emre & Daştan, Muhammet & Avci, Salih Bortecine, 2024. "Persistence of disaggregate energy RD&D expenditures in top-five economies: Evidence from artificial neural network approach," Applied Energy, Elsevier, vol. 365(C).
    12. Nuwan Munasinghe & Thomas Romeijn & Gavin Paul, 2023. "Voxel-based sensor placement for additive manufacturing applications," Journal of Intelligent Manufacturing, Springer, vol. 34(2), pages 739-751, February.
    13. Cheng, Ya & Sinha, Avik & Ghosh, Vinit & Sengupta, Tuhin & Luo, Huawei, 2021. "Carbon Tax and Energy Innovation at Crossroads of Carbon Neutrality: Designing a Sustainable Decarbonization Policy," MPRA Paper 108185, University Library of Munich, Germany, revised 2021.
    14. Tim Benijts, 2014. "A Business Sustainability Model for Government Corporations. A Belgian Case Study," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 204-216, March.
    15. Karmaker, Shamal Chandra & Hosan, Shahadat & Chapman, Andrew J. & Saha, Bidyut Baran, 2021. "The role of environmental taxes on technological innovation," Energy, Elsevier, vol. 232(C).
    16. Wei, Shuxin & Wei, Wenshan & Umut, Alican, 2023. "Do renewable energy consumption, technological innovation, and international integration enhance environmental sustainability in Brazil?," Renewable Energy, Elsevier, vol. 202(C), pages 172-183.
    17. Chishti, Muhammad Zubair & Sinha, Avik, 2022. "Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies," Technology in Society, Elsevier, vol. 68(C).
    18. María Pilar de la Cruz López & Juan José Cartelle Barros & Alfredo del Caño Gochi & Manuel Lara Coira, 2021. "New Approach for Managing Sustainability in Projects," Sustainability, MDPI, vol. 13(13), pages 1-27, June.
    19. Adam Stecyk, 2023. "Enhancing Sustainable Development in ASEAN: An Integrated Assessment of Education and Health Factors," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 209-220.
    20. Ofori, Pamela E. & Ofori, Isaac K. & Castelnovo, Paolo, 2024. "Effects of Innovation and Economic Freedom on Female Economic Inclusion," MPRA Paper 121244, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5871-:d:1432165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.