From vicious to virtuous circles: problem structuring for quantified decision making in operationalization of corporate social responsibility

There is no formalised approach for problem structuring and quantitative decision support to operationalise corporate social responsibility (CSR) implementation. In this paper, techniques for considering criteria relationships are outlined and a holistic, systematic framework combining a qualitative and quantitative method for practical CSR integration is provided. Cognitive mapping (CM) is applied to structure the problem picture, and the cause–effect relationships between decision elements. Soft CM methodology is employed to assess the cross-criteria interactions, at both an individual and a collective level. The interactions of criteria can have a significant impact upon CSR implementation. Such impacts can be direct or indirect through their close linkages to other criteria. The causal strategic map serves as an input to the analytic network process (ANP) to carry out the multi-criteria decision analysis. Then, CM and ANP are applied in a comparative analysis to verify whether the measures of criteria significance do correspond. The key criteria in networks are identified using centrality in CM and single limited priorities in ANP. This study demonstrates that using criteria without considering their interactions will result in shortcomings in the evaluation and assessment of CSR programmes. The holistic framework, combining CM and ANP proposed in this work, enhances the process of problem structuring and supports preference-based evaluation of decision alternatives. The results of our study yield that the mapping procedure has an influence on the criteria significance in networks. The correspondence between CM and ANP is stronger when cause relationships are rigidly interpreted. More unambiguous interpretations of causal relations can be achieved if methods are used jointly and common peaks of importance in both CM and ANP could potentially serve as indications of key decision elements.     

Implementing the balanced scorecard using the analytic hierarchy process & the analytic network process

The balanced scorecard (BSC) is a multi-attribute evaluation concept that highlights the importance of non-financial attributes. By incorporating a wider set of non-financial attributes into the measurement system of a firm, the BSC captures not only a firm's current performance, but also the drivers of its future performance. Although there is an abundance of literature on the BSC framework, there is a scarcity of literature on how the framework should be properly implemented. In this paper, we use the analytic hierarchy process (AHP) and its variant the analytic network process (ANP) to facilitate the implementation of the BSC. We show that the AHP and the ANP can be tailor-made for specific situations and can be used to overcome some of the traditional problems of BSC implementation, such as the dependency relationship between measures and the use of subjective versus objective measures. Numerical examples are included throughout.     

Numerical analysis of shear bands in solids by means of computational homogenization

A novel fully three–dimensional framework for the numerical analysis of shear bands in solids undergoing large deformations is presented. The effect of micro shear bands on the macroscopic material response is computed by means of a homogenization strategy. More precisely, a strain–driven approach which complies well with displacement–driven finite element formulations is adopted. The proposed implementation is based on periodic boundary conditions for the micro–scale. Details about the implementation of the resulting constraints into a three–dimensional framework are discussed. The shear bands occurring at the micro–scale are modeled by a cohesive zone law, i.e., the tangential component of the traction vector governs the relative shear sliding displacement. This law is embedded into a Strong Discontinuity Approach (SDA). To account for realistic sliding modes, multiple shear bands are allowed to form and propagate in each finite element. (© 2008 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim)     

Evaluating environmentally conscious business practices

Corporate environmental management is becoming more strategically oriented. With increased emphasis on the natural environmental by organizational stakeholders, including governments, stockholders, customers, employees and communities, the need for explicit consideration and incorporation of environmental strategy within corporate strategy has never been more critical to the organization. With such programs as design for the environment, total quality environmental management, life cycle analysis, green supply chain management, and ISO 14000 standards gaining notoriety, the operational and strategic decisions for environmental managers and businesses is becoming more complex. This paper integrates these elements and their attributes into a strategic assessment and decision tool using the systems with feedback or analytical network process (ANP) technique first introduced by Saaty. The ANP technique, which has been sparingly investigated by researchers or applied by practitioners is useful for modeling dynamic strategies systemic influences on managerial decisions.     

Social responsibility allocation in two-echelon supply chains: Insights from wholesale price contracts

Corporate social responsibility (CSR) is considered in a two-echelon supply chain consisting of an upstream supplier and a downstream firm that are bound by a wholesale price contract. CSR performance (the outcome of CSR conduct) of the whole supply chain is gauged by a global variable and the associated cost of achieving this CSR performance is only incurred by the supplier with an expectation of being shared with the downstream firm via the wholesale price contract. As such, the key issue is to determine who should be allocated as the responsibility holder with the right of offering the contract and how this right should be appropriately restricted. Game-theoretical analyses are carried out on six games, resulting from different interaction schemes between the supplier and the firm, to derive their corresponding equilibriums. Comparative institutional analyses are then conducted to determine the optimal social responsibility allocation based on both economic and CSR performance criteria. Main results are furnished in a series of propositions and their implications to the real-world business practice are discussed. The key findings are threefold: under the current model settings: (1) the optimal allocation scheme is to assign the supplier as the responsibility holder with appropriate restrictions on the corresponding rights to determine the wholesale price; (2) inherent conflict exists between the economic and CSR performance criteria and, hence, the two maxima cannot be achieved simultaneously; and (3) although integrative channel profit is not attainable, the system-wide profit will be improved by implementing optimal social responsibility allocation schemes.     

Selection of technology acquisition mode using the analytic network process

Selecting the appropriate acquisition mode for a required technology, is one of the critical strategic decisions in formulating a technology strategy. Although a number of factors were found to be influential in the choice of technology acquisition mode, it still remains a void in the literature how to make a strategic decision, based on a huge set of those factors with the help of a systematic approach. This study deals with the selection of technology acquisition mode as a multiple criteria decision making (MCDM) problem. The proposed solution to the problem in this study, is the analytic network process (ANP) approach. Since the ANP is a MCDM method that can accommodate interdependency among decision attributes, it is capable of providing priorities of alternatives with consideration of interrelationships among strategic factors. The 21 influential factors identified from the empirical studies are included as sub-criteria in the ANP model, and they are grouped into five criteria: capability, strategy, technology, market, and environment. The final decision can be made based on the resulting priorities of the alternative acquisition modes. The proposed approach is expected to effectively aid decision making on which mode is adopted for acquisition of required technologies. A case of a software company is presented for the illustration of the proposed approach.     

Equilibrium analysis and corporate social responsibility for supply chain integration

This paper evaluates the profit of coordination between manufacturers on corporate social responsibility (CSR) under network equilibrium. A three-tier supply chain network with multiple manufacturers, distributors, and retailers is considered, and several mathematical models are established to investigate behavior and profits in a decentralized supply chain network, a centralized supply chain network, and a supply chain network with CSR. The system-optimal solution of a supply chain network problem is usually not achievable or stable since each member always tries to maximize its own profit. In order to make such a system-optimal solution in a stable state and ensure the maximization of total profits, a strategy of coordination between manufacturers on CSR is proposed. The amount of payment in CSR of each manufacturer is clearly defined. A hybrid diagonalization method with a super-network representation is proposed and tested with numerical examples. The results show that by taking CSR, the total profits of the whole supply chain network can increase with or without coordination.     

Implementation of inquiry-based learning in day-to-day teaching: a synthesis

This synthesis is designed to provide insight into the most important issues involved in a large-scale implementation of inquiry-based learning (IBL). We will first turn to IBL itself by reflecting on (1) the definition of IBL and (2) examining the current state of the art of its implementation. Afterwards, we will move on to the implementation of IBL and look at its dissemination through resources, professional development, and the involvement of the context. Based on these theoretical reflections, we will develop a conceptual framework for the analysis of dissemination activities before briefly analyzing four exemplary projects. The aim of our analysis is to reflect on the various implementation strategies and raise awareness of the different ways of using and combining them. This synthesis will end with considerations about the framework and conclusions regarding needed future actions.     

An analytic network process approach to operationalization of five forces model

The five forces model has been one of the most influential frameworks for strategic management. In contrast to its importance as a centerpiece of textbooks, however, it has attracted less attention from both academic researchers and practicing managers. This is due to its innate weakness, difficulty in operationalization. The vital requisites for operationalizing the five forces model are to deal with it as a complex system composed of interrelated forces and their sub-forces, and to prioritize them with consideration of their interdependency. The tenet of this study is the requisites can be achieved through the analytic network process (ANP). The ANP, which is a generalization of the analytic hierarchy process (AHP), produces priorities of elements in a complex network model with consideration of interdependency among elements. The five forces model is transformed into a network model of the ANP. The ANP procedure is then carried out to obtain the priority weights of the forces. Combining the derived weights and ratings on the forces produces the state-of-industry-competition index (SICI) values that represent the overall competitive condition of a given industry. The working of the proposed approach is provided with the help of a case study example of the Web portal Industry of Korea. The proposed ANP approach is expected to expand the five forces model into a workable system of analysis by improving its analytical power.     

政府奖励对报废汽车回收模式选择的作用机制研究——基于企业社会责任视角

随着我国报废汽车数量的增多,由其造成的交通隐患、环境污染和资源浪费已成为重要社会问题,而如何设计合理可行的回收模式成为解决问题的关键。以制造商主导为前提,提出了基于企业社会责任的报废汽车回收模型,构建了制造商回收、销售商回收和第三方回收模式下的回收流程和数学模型,通过实例对考虑和不考虑企业社会责任两种情况下的回收模型进行了分析,探讨了不同政府奖励下报废汽车回收模式的策略选择。通过研究发现:(1)不论是否考虑企业社会责任,随着政府奖励的增加,制造商最终都会选择由自己进行回收;(2)当考虑企业社会责任时,政府奖励和决策者经济责任偏好都会导致决策的改变,随着政府奖励和赋予经济责任权重的同步增加,制造商的决策由第三方企业回收模式或销售商回收模式变成了制造商回收模式,表明政府奖励和企业社会责任对报废汽车回收模式选择具有显著影响。     

An intelligent decomposition of pairwise comparison matrices for large-scale decisions

A Pairwise Comparison Matrix (PCM) has been used to compute for relative priorities of elements and are integral components in widely applied decision making tools: the Analytic Hierarchy Process (AHP) and its generalized form, the Analytic Network Process (ANP). However, PCMs suffer from several issues limiting their applications to large-scale decision problems. These limitations can be attributed to the curse of dimensionality, that is, a large number of pairwise comparisons need to be elicited from a decision maker. This issue results to inconsistent preferences due to the limited cognitive powers of decision makers. To address these limitations, this research proposes a PCM decomposition methodology that reduces the elicited pairwise comparisons. A binary integer program is proposed to intelligently decompose a PCM into several smaller subsets using interdependence scores among elements. Since the subsets are disjoint, the most independent pivot element is identified to connect all subsets to derive the global weights of the elements from the original PCM. As a result, the number of pairwise comparison is reduced and consistency is of the comparisons is improved. The proposed decomposition methodology is applied to both AHP and ANP to demonstrate its advantages.     

ANP application for evaluating Turkish mobile communication operators

The proposed decision model, based on Analytic Network Process (ANP), has been developed in order to determine the dynamics of the Global System for Mobile Communications (GSM) market. In accordance with the sequence of ANP, first of all, the problem was structured and modeled. At the next step, a quantitative analysis was conducted with the customers in order to assess the importance of the related factors and forecast the market shares of the Turkish mobile communication operators. The forecasted market share values were compared with actual ones for the validation of the decision model. The assessed importance of the factors in a valid model would be a potential competitive advantage for the mobile operators.     

考虑企业社会责任的三级供应链协调策略研究

为考察企业社会责任(CSR)对供应链绩效的影响,将消费者剩余作为企业参与社会责任活动的利润函数,研究了由单个制造商、单个分销商和单个零售商组成的三级供应链的协调优化问题.考虑两种情况:一种情况是零售商参与CSR活动,另一种情况是制造商参与CSR活动.研究表明,在制造商是斯坦克尔伯格(Stackelberg)博弈主导者的...     

A mathematical programming model for the fuzzy analytic network process—applications of international investment

Currently, the analytic network process (ANP) method is widely employed to consider the multiple criteria analysis problems with dependence and feedback effects. However, in order to extend the ANP to resolve the problem of uncertainty or human subjective judgment, the concepts of fuzzy numbers should be incorporated into the ANP to represent the subjective uncertain pairwise judgments. In this paper, therefore, we propose a novel fuzzy analytic network process (FANP) model by solving a mathematical programming problem. Unlike other FANPs, the proposed method does not require the reciprocity assumption of the weight ratios between criteria, and it can derive local and global weights simultaneously in a single model. Two numerical examples of international investment problems are used to demonstrate the proposed method.     

Optimal allocation to Deferred Income Annuities

In this paper we employ a lifecycle model that uses utility of consumption and bequest to determine an optimal Deferred Income Annuity (DIA) purchase policy. We lay out a mathematical framework to formalize the optimization process. The method and implementation of the optimization is explained, and the results are then analyzed. We extend our model to control for asset allocation and show how the purchase policy changes when one is allowed to vary asset allocation. Our results indicate that(i) refundable DIAs are less appealing than non-refundable DIAs because of the loss of mortality credits; (ii) the DIA allocation region is larger under the fixed asset allocation strategy due to it becoming a proxy for fixed-income allocation; and (iii) when the investor is allowed to change asset-allocation, DIA allocation becomes less appealing. However, a case for higher DIA allocation can be made for those individuals who perceive their longevity to be higher than the population.     

Mathematical Programming Approaches to Sensitivity Calculations in Decision Analysis

A general framework for sensitivity analysis of discrete multi-criteria decision problems with or without uncertainty has been developed. The framework results in the need to solve very many mathematical programmes and hence is being implemented using parallel programming techniques. The method is illustrated with reference to a simple decision tree problem.     

Mathematical programming and the sensitivity of multi-criteria decisions

We report on the current state of a project whose aim is to implement a framework for sensitivity analysis in Multi-Criteria Decision Making (MCDM). The framework is largely based on mathematical programming. Due to the potentially large number and nature of the mathematical programmes, it is far from trivial to provide solutions to all of them in acceptable computing times. The challenge is even greater when we recognize that much decision analysis is performed in the context of decision conferences where any sensitivity analysis needs to be conducted in near real time (preferably) on a PC. We present a parallel processing approach to this challenge and point to some of the difficulties still to be resolved. Preliminary results obtained on a network of transputers are discussed.     

ANP法在西部可持续发展战略体系调整中的应用

论述了在西部开发问题中应用 ANP法辅助决策的可行性和必要性 ,并构建了具体的模型 ,以说明如何应用 ANP法对西部开发的战略体系进行调整 .