A multiple criteria group decision-making approach for the assessment of small and medium-sized enterprise competitiveness
ISSN: 0025-1747
Article publication date: 11 June 2018
Issue publication date: 26 February 2019
Abstract
Purpose
Small- and medium-sized enterprises (SMEs) have become increasingly important in national and international markets because they contribute to the development of local and national economies. SMEs often face serious challenges when competing with multinational companies. The purpose of this paper is to develop a method for assessing SMEs’ competitiveness.
Design/methodology/approach
Based on a constructivist epistemology, this study makes an integrated use of cognitive mapping and the measuring attractiveness by a categorical-based evaluation technique (MACBETH). To this end, face-to-face sessions were conducted with a panel of entrepreneurs and senior managers who deal with the challenges of maintaining SME competitiveness every day. The proposed assessment system was tested and validated by the panel members.
Findings
The methodological processes adopted in this study provide promising results for decision makers seeking to identify the most competitive SMEs. Specifically, the results emphasize, among other points, the importance of innovation and the human dimension to gaining competitive advantages.
Research limitations/implications
The evaluation system developed in this study is extremely versatile and confirms the usefulness of integrating cognitive mapping and MACBETH to facilitate evaluations of SME competitiveness. However, due to its idiosyncratic and process-oriented nature, generalizations need to be done with caution.
Practical implications
The proposed method can be valuable to researchers seeking to develop mechanisms for evaluating SMEs’ entrepreneurial performance and include specialized know-how and sensemaking in organizational decision-making processes.
Originality/value
The integrated use of cognitive maps and MACBETH contributes to a better understanding of how to assess SMEs’ competitiveness. No prior work reporting the use of this dual methodology in this study context has been found.
Keywords
Acknowledgements
This work was partially funded by the Portuguese Foundation for Science and Technology (Grant UID/GES/00315/2013). The authors wish to acknowledge the contributions and limitless willingness of the following expert panel members: Helena Azinheira, Márcio Serra, Nuno Marques dos Santos, Pedro Castro, Pedro Plácido, Ricardo Monteiro and Rossana Duarte. The authors are also grateful for the facilities provided by the ISCTE Business School, University Institute of Lisbon, Portugal.
Citation
Gonçalves, J.M., Ferreira, F.A.F., Ferreira, J.J.M. and Farinha, L.M.C. (2019), "A multiple criteria group decision-making approach for the assessment of small and medium-sized enterprise competitiveness", Management Decision, Vol. 57 No. 2, pp. 480-500. https://doi.org/10.1108/MD-02-2018-0203
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited