Title: Capability development in business system in the uncertainty conditions

Authors: Zvonko Kremljak

Addresses: Ministry of the Economy, Kotnikova 5, 1000 Ljubljana, Slovenia

Abstract: The long-term planning is impossible in conditions of uncertainty and continuous changes. The paper encompasses the original synthesis of the theory of real options, risk management, modelling uncertainty, method of analytic hierarchy process and fuzzy logic, and it represents a contribution to the construction of tools for decision-making support for directing the capability development process in business system. The procedure is based on moderate and manageable number of influential sizes and provides a comprehensive management of the problem with searching for suitable solutions. The procedure includes dealing with suitability, i.e. usefulness of logic of theory of real options with development of strategic capacities, as well as obstacles, which limit its usefulness; development of heuristic system approach which, on the basis of theory of real options, encourages the decision-making in capabilities development in business systems; completion of heuristic approach for effective interpretation of numerical results and their support to decision-making process.

Keywords: dynamic capabilities; fuzzy logic; logistic systems; AHP; analytical hierarchy process; decision making; uncertainty; risk management; capability development; business systems; long-term planning; continuous change; influential sizes; suitability; real options; strategic capacities; heuristics; services operations; informatics.

DOI: 10.1504/IJSOI.2010.034037

International Journal of Services Operations and Informatics, 2010 Vol.5 No.3, pp.231 - 251

Published online: 06 Jul 2010 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article