A hybrid multi-criteria decision-making model for firms competence evaluation

In this paper, we present a hybrid multi-criteria decision-making (MCDM) model to evaluate the competence of the firms. According to the competence-based theory reveals that firm competencies are recognized from exclusive and unique capabilities that each firm enjoy in marketplace and are tightly intertwined within different business functions throughout the company. Therefore, competence in the firm is a composite of various attributes. Among them many intangible and tangible attributes are difficult to measure. In order to overcome the issue, we invite fuzzy set theory into the measurement of performance. In this paper first we calculate the weight of each criterion through adaptive analytic hierarchy process (AHP) approach (A3) method, and then we appraise the performance of firms via linguistic variables which are expressed as trapezoidal fuzzy numbers. In the next step we transform these fuzzy numbers into interval data by means of α-cut. Then considering different values for α we rank the firms through TOPSIS method with interval data. Since there are different ranks for different α values, we apply linear assignment method to obtain final rank for alternatives.