Skip to main content
Book cover

IFIP International Conference on Computer Information Systems and Industrial Management

CISIM 2019: Computer Information Systems and Industrial Management pp 385–396Cite as

Multi-criteria Decision Making Problem for Doing Business: Comparison Between Approaches of Individual and Group Decision Making

Part of the Lecture Notes in Computer Science book series (LNISA,volume 11703)

Abstract

The selection of location for doing business can be realized by using of several aspects of business regulations as reported by the World Bank. For the goal, a multi-criteria decision making problem is formulated to determine the most preferable city to invest. This decision making problem is solved by two optimization models – by individual decision making preferences expressed in weighted sum method and group decision making considering the proposed modified simple additive weighting. In group decision making, the experts usually are with different background and field of competency. The proposed modification takes into account the difference in experts’ experience by considering all experts’ opinions with different importance in the aggregated final group decision. It is shown that new utility function based on simple additive weighting method more accurately reflect the existing differences in background and field of competency of each expert. Due the multidimensional nature of the problem for doing business, the group decision making approach seems to be more precisely in determination of the best selection to invest.

Keywords

  • MCDM
  • Weighted sum method
  • Group decision making
  • Modified simple additive weighting
  • Economies ranking

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-28957-7_32
  • Chapter length: 12 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   79.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-28957-7
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   99.99
Price excludes VAT (USA)
Learn about institutional subscriptions
Fig. 1.
Fig. 2.

References

  • Angarita-Zapata, J.S., Parra-Valencia, J.A., Andrade-Sosa, H.H.: Understanding the structural complexity of induced travel demand in decision-making: a system dynamics approach. Organizacija 49(3), 129–144 (2016)

    CrossRef  Google Scholar 

  • Borissova, D.: A group decision making model considering experts competency: an application in personnel selections. Compt. rendus de l’Acad. bulgare des Sci. 71(11), 1520–1527 (2018)

    Google Scholar 

  • Brester, C., Ryzhikov, I., Semenkin, E.: Multi-objective optimization algorithms with the island metaheuristic for effective project management problem solving. Organizacija 50(4), 364–373 (2017)

    CrossRef  Google Scholar 

  • Chen, M., Wan, Z., Chen, X.: New min-max approach to optimal choice of the weights in multi-criteria group decision-making problems. Appl. Sci. 5, 998–1015 (2015)

    CrossRef  Google Scholar 

  • Doing Business. http://www.doingbusiness.org/. Accessed 27 July 2018

  • Fujianti, L.: Top management characteristics and company performance: an empirical analysis on public companies listed in the Indonesian stock exchange. Eur. Res. Stud. J. XXI(2), 62–76 (2018)

    Google Scholar 

  • Gegov, A., Arabikhan, F., Sanders, D., Vatchova, B., Vasileva, T.: Fuzzy networks with feedback rule bases for complex systems modelling. Int. J. Knowl.-Based Intell. Eng. Syst. 21(4), 211–225 (2017)

    Google Scholar 

  • Gokmenoglu, K.K., Alaghemand, Sh.: A multi-criteria decision-making model for evaluating priorities for foreign direct investment. Croat. Oper. Res. Rev., 6, 489–510 (2015)

    CrossRef  MathSciNet  Google Scholar 

  • Hadad, Y., Keren, B., Laslo, Z.: Multi-criteria methods for ranking project activities. Yugosl. J. Oper. Res. 26(2), 201–219 (2016)

    CrossRef  MathSciNet  Google Scholar 

  • Hornungova, J., Milichovsky, F.: Evaluations of financial performance indicators based on factor analysis in automotive. Period. Polytech. Soc. Manage. Sci. 27(1), 26–36 (2019)

    CrossRef  Google Scholar 

  • Jaksic, M., Mimovic, P., Lekovic, M.: A multi-criteria decision-making approach to performance evaluation of mutual funds: a case study in Serbia. Yugosl. J. Oper. Res. 28(3), 385–414 (2018)

    CrossRef  MathSciNet  Google Scholar 

  • Korsemov, D., Borissova, D., Mustakerov, I.: Combinatorial optimization model for group decision-making. Cybern. Inform. Technol. 18(2), 65–73 (2018)

    CrossRef  MathSciNet  Google Scholar 

  • Markovits-Somogyi, R.: Data envelopment analysis and its key variants utilized in the transport sector. Period. Polytech. Transp. Eng. 39(2), 63–68 (2011)

    CrossRef  Google Scholar 

  • Marler, R., Arora, J.: Survey of multi-objective optimization methods for engineering. Struct. Multidisc. Optim. 26(6), 369–395 (2004)

    CrossRef  MathSciNet  Google Scholar 

  • Marolt, M., Lenart, G., Maletic, D., Borštnar, M.K., Pucihar, A.: Business model innovation: insights from a multiple case study of slovenian SMEs. Organizacija 49(3), 161–171 (2016)

    CrossRef  Google Scholar 

  • Mustakerov, I., Borissova, D.: Investments attractiveness via combinatorial optimization ranking. Int. J. Econ. Manage. Eng. 7(10), 2674–2679 (2013)

    MATH  Google Scholar 

  • Pinheiro-Alves, R., Zambujal-Oliveira, J.: The ease of doing business index as a tool for investment location decisions. Econ. Lett. 117(1), 66–70 (2012)

    CrossRef  Google Scholar 

  • Ramik, J.: Ranking alternatives by pairwise comparisons matrix and priority vector. Sci. Ann. Econ. Bus. 64(SI), 85–95 (2017)

    Google Scholar 

  • Ruiz, F., Cabello, J.M., Perez-Gladish, B.: Building ease-of-doing-business synthetic indicators using a double reference point approach. Technol. Forecast. Soc. Chang. 131, 130–140 (2018)

    CrossRef  Google Scholar 

  • Shih, H.-S., Shyur, H.-J., Lee, E.S.: An extension of TOPSIS for group decision making. Math. Comput. Model. 45, 801–813 (2007)

    CrossRef  Google Scholar 

  • Skraba, A., Stanovov, V., Semenkin, E., Kofjac, D.: Hybridization of stochastic local search and genetic algorithm for human resource planning management. Organizacija 49(1), 42–54 (2016)

    CrossRef  Google Scholar 

  • Vorosmarty, G., Dobos, I.: Supplier evaluation with environmental aspects and common DEA weights. Period. Polytech. Soc. Manage. Sci. 27(1), 17–25 (2019)

    CrossRef  Google Scholar 

  • Wang, C.-N., Huang, Y.-F., Chai, Y.-C., Nguyen, V.T.: A multi-criteria decision making (MCDM) for renewable energy plants location selection in Vietnam under a fuzzy environment. Appl. Sci. 8, 2069 (2018). https://doi.org/10.3390/app8112069

    CrossRef  Google Scholar 

  • Zhuang, Z.-Y., Lin, C.-Ch., Chen, Ch.-Y., Su, C.-R.: Rank-based comparative research flow benchmarking the effectiveness of AHP-GTMA on aiding decisions of shredder selection by reference to AHP–TOPSIS. Appl. Sci. 8, 1974 (2018). https://doi.org/10.3390/app8101974

    CrossRef  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Institute of Information and Communication Technology at Bulgarian Academy of Sciences, 1113, Sofia, Bulgaria

    Daniela Borissova, Dilian Korsemov & Ivan Mustakerov

  2. University of Library Studies and Information Technologies, 1784, Sofia, Bulgaria

    Daniela Borissova

Authors
  1. Daniela Borissova
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dilian Korsemov
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ivan Mustakerov
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Daniela Borissova .

Editor information

Editors and Affiliations

  1. Bialystok University of Technology, Bialystok, Poland

    Prof. Khalid Saeed

  2. University of Calcutta, Calcutta, India

    Prof. Rituparna Chaki

  3. Mihajlo Pupin Institute, Belgrade, Serbia

    Valentina Janev

Rights and permissions

Reprints and Permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this paper

Verify currency and authenticity via CrossMark

Cite this paper

Borissova, D., Korsemov, D., Mustakerov, I. (2019). Multi-criteria Decision Making Problem for Doing Business: Comparison Between Approaches of Individual and Group Decision Making. In: Saeed, K., Chaki, R., Janev, V. (eds) Computer Information Systems and Industrial Management. CISIM 2019. Lecture Notes in Computer Science(), vol 11703. Springer, Cham. https://doi.org/10.1007/978-3-030-28957-7_32

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-28957-7_32

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-28956-0

  • Online ISBN: 978-3-030-28957-7

  • eBook Packages: Computer ScienceComputer Science (R0)