Integrating Fuzzy C-Means and TOPSIS for performance evaluation: An application and comparative analysis

  • Authors:
  • Chunguang Bai;Dileep Dhavale;Joseph Sarkis

  • Affiliations:
  • School of Management Science and Engineering, Dongbei University of Finance & Economics, Jianshan Street 217, Dalian 116025, PR China;Graduate School of Management, Clark University, 950 Main Street, Worcester, MA 01610-1477, USA;School of Business, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609-2280, USA

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2014

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Abstract

In this paper we introduce a multi-method multiple criteria approach for evaluating the performance of organizations. Performance analysis may include both strategic and operational performance, as well as financial and other less tangible factors. This paper introduces the use of Fuzzy C-Means and TOPSIS for organizational performance evaluation purposes. Using real company data and balanced scorecard accounting and performance dimensions the methodology is applied and evaluated. The predictive abilities of the technique from an organizational performance evaluation approach are evaluated using this data. One of the results from the illustrative application is that economic performance evaluation is not the best predictor of overall viability of some organizations, especially e-commerce based organizations.