Title: Prioritisation of technological capabilities to maximise the financial performance by fuzzy AHP

Authors: Zynolabdin Rahmani; Elham Keshavarz

Addresses: Business Management Department, Payame Noor University, P.O. Box 19395-3697, Tehran, Iran ' Business Management Department, Payame Noor University, P.O. Box 19395-3697, Tehran, Iran

Abstract: Over the last few decades, companies have been investing in technological competency steadily and increasingly. Companies investing in technological competency assumed that such investments would improve operating efficiency and thus improve financial performance. Technology is a business driver and thus can be utilised to support competitive margin. The firm, whose technology competency level is higher than rivals, will generate and introduce more innovative products. The model of this study is tested on a sample of 13 experts in four coil companies in Iran which own about 90% of the market share in the coil industry. In this study, technological capability factors (technology management, process technology, and product technology) are prioritised according to the competitive advantage levels (profit, return on investment, sales growth rate, liquidity, long-term debt to equity ratio, and working capital) and competitive priorities (cost, price, quality, flexibility, and time) using fuzzy analytic hierarchy process (FAHP) with the aim of maximising the financial performance at coil manufacture industry. The results indicate that within Iran coil industry, process technology is more important than product technology and technology management for coil manufacture industry.

Keywords: technological capabilities; fuzzy AHP; analytical hierarchy process; FAHP; financial performance; Iran; technology competency; coil manufacturing; technology management; process technology; product technology; profit; return on investment; ROI; sales growth; liquidity; debt to equity ratio; working capital; cost; price; quality; flexibility; time.

DOI: 10.1504/IJOR.2015.068283

International Journal of Operational Research, 2015 Vol.22 No.3, pp.263 - 286

Received: 13 Feb 2013
Accepted: 22 Jun 2013
Published online: 09 May 2015 *

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