TITLE:
Multicriteria Analysis for Improving the Innovation Capability in Small and Medium Enterprises in Emerging Countries
AUTHORS:
Juan Sepúlveda, Elizardo Vasquez
KEYWORDS:
Innovation Management, Multicriteria Analysis, Benchmarking, Industrial Development
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.4 No.4,
April
4,
2014
ABSTRACT:
In this paper we
describe an analytical model to determine the innovation capability of a small
and medium enterprise (SME) as the first step towards the continuous
improvement of performance in such a dimension of an organization. The model
first assesses organizational variables and classifies companies by using the
Flowsort? multicriteria method. As second step, the classification module
categorizes SMEs into four classes of companies: passive, reactive, proactive,
proactive. From this sorting and the subsequent analysis of the variables
measured by the survey, it is determined the set of best management practices
for innovation that the company needs to implement in order to increase their
level of performance. The application of the model to nine companies in Chile
is shown along with numerical results. Evaluations show that the classification
is consistent with expert judgment and that effectively identifies those areas
that contribute most to the increase of the innovation capability in the SMEs.