A new approach and insightful financial diagnoses for the IT industry based on a hybrid MADM model

摘要

Financial performance is vital for information technology (IT) companies to survive intense global competition. Because of the complexity in the business environment and the rapidly advancing technologies, companies lack specific guidance to understand the implicit relationship among crucial financial indicators for improving prospects in a contextual approach. To resolve the aforementioned concern, this study proposed a new approach by combining the variable consistency dominance-based rough set approach (VC-DRSA) with the decision-making trial and evaluation laboratory (DEMATEL) technique to explore the complex relationship among financial variables and improve future performances. In addition, a fuzzy inference system was devised on the basis of the findings of the VC-DRSA and DEMATEL technique to examine granulized knowledge and implications. A group of real IT companies listed on the Taiwan stock market were used as an empirical case to present the benefits of the new approach. The results generated a set of decision rules that can be used for forecasting future performance prospects and diagnosing the directional influences of crucial variables to gain insights; certain strong decision rules were further examined using fuzzy inference to verify the obtained implications. The findings contribute to the financial applications of decision-making science and computational intelligence in practice.