Using VIKOR with structural equation modeling for constructing benchmarks in the Internet industry

Abstract

Purpose

The study uses VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR)-structural equation modeling (SEM) to construct benchmarks for service providers and evaluate a multimethodology practice in the Internet industry.

Design/methodology/approach

The data were collected using a survey based on an email/interview with 444 Internet users participating. SEM obtained coefficient values by way of customer expectations for Internet service providers. The authors normalized coefficients and integrated them into the VIKOR method for ranking competitors in the Internet industry.

Findings

VIKOR-SEM revealed that network and information quality and security/privacy significantly positively impact customer trust while network and information quality and customer trust significantly positively affect Internet users' value perceptions. Customer services do not affect customer trust, while security/privacy and customer services have no significant influence on customer value perceptions. Though customer services and Internet users' trust and value perceptions directly, significantly and positively affect their commitments, the quality of network and information and security/privacy indirectly, significantly and positively influence customer commitments.

Research limitations/implications

The study was in the Internet industry of Iraq. The results cannot be accurate for the other countries and the service sectors. The researchers/managers can adopt the model in other service sectors to test the multimethodology.

Originality/value

VIKOR-SEM evaluated the changes in customer expectations and service providers in the Internet industry.

Citation

Torlak, N.G., Demir, A. and Budur, T. (2021), "Using VIKOR with structural equation modeling for constructing benchmarks in the Internet industry", Benchmarking: An International Journal, Vol. 28 No. 10, pp. 2952-2976. https://doi.org/10.1108/BIJ-09-2020-0465