Timing of resources exploration in the behavior of firm-Empirical simulation by intelligent hybrid model

  • Authors:
  • Bao Rong Chang;Hsiu Fen Tsai

  • Affiliations:
  • Department of Computer Science and Information Engineering, National University of Kaohsiung, 700, Kaohsiung University Rd., Nanzih District, Kaohsiung 811, Taiwan;Department of International Business, Shu-Te University, 59, Hun Shang Rd., Yen Chao, Kaohsiung County 824, Taiwan

  • Venue:
  • Applied Soft Computing
  • Year:
  • 2011

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Abstract

We have insight into the importance of resource exploration derived from the quest for sustaining competitive advantage as well as the growth of the firm, which are well-explicated in the resources point of view. However, we really do not know when the firm will seriously commit to this kind of activities. Therefore, this study proposes an intelligent hybrid model using quantum minimization (QM) to tune a composite model adaptive support vector regression (ASVR) and nonlinear generalized autoregressive conditional heteroscedasticity (NGARCH) such that it constitutes the relationship among five indicators, the growth rate of long-term investment, the firm size, the return on total asset, the return on common equity, and the return on sales. In particular, this proposed approach outperforms several typical methods such as auto-regressive moving-average regression (ARMAX), back-propagation neural network (BPNN), or adaptive neuron-fuzzy inference system (ANFIS) for this timing problem in term of comparing their achievement and the goodness of fit. Consequently, the preceding methods involved in this problem truly explain the timing of resources exploration in the behavior of firm. Meanwhile, the performance summary among methods is compared quantitatively.