Abstract
Core capabilities are critical abilities that enhance and sustain an organization’s competitive advantage in extremely competitive environments. In today’s complex and dynamic business environment, companies are often prevented from effectively and efficiently evaluating relevant factors necessary for developing their core capability strategic systems. These systems, with inherent human decision-making processes, should be fully considered when creating a method for determining a firm’s suitable or required core capabilities. It is helpful to implement IT-based group decision support systems (GDSS) with soft computing algorithms to assist managers in determining the appropriate core capabilities for the firm. Therefore, this study develops a holistic group decision support system in which similarity measures, fuzzy set theory, and fuzzy mathematics programming are implemented to facilitate managers in making decisions. Through evaluations done in actual cases, we have found that this system creates a flexible and user-friendly environment that aids top management and other relevant staff members in evaluating all relevant factors related to core capabilities.
Similar content being viewed by others
References
Amit, R., & Schoemaker, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14(1), 33–46.
Andreu, R., & Ciborra, C. (1996). Organisational learning and core capabilities development: The role of IT. The Journal of Strategic Information Systems, 5(2), 111–127.
Ansoff, H. I., & McDonnell, E. J. (1990). Implanting strategic management. Englewood Cliffs: Prentice-Hall.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Chen, F. Y., & Chang, Y. H. (2005). Examining airline service quality from a process perspective. Journal of Air Transport Management, 11(2), 79–87.
Chen, S., Chou, T., & Chang, H. (2005). A semantic learning for content-based image retrieval using analytical hierarchy process. Expert Systems with Applications, 28(3), 495–505.
Chung, Y. M., & Lee, J. Y. (2004). Optimization of some factors affecting the performance of query expansion. Information Processing and Management, 40(6), 891–917.
Ethiraj, S. K., Kale, P., Krishnan, M. S., & Singh, J. V. (2005). Where do capabilities come from and how do they matter? a study in the software services industry. Strategic Management Journal, 26(1), 25–45.
Ettlie, J. E., & Pavlou, P. A. (2006). Technology-based new product development partnerships. Decision Sciences, 37(2), 117–147.
Fjermestad, J. (2004). An analysis of communication mode in group support systems research. Decision Support Systems, 37(2), 239–263.
Gao, S., Wang, H., Xu, D., & Wang, Y. (2007). An intelligent agent-assisted decision support system for family financial planning. Decision Support Systems, 44(1), 60–78.
Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114–135.
Gruca, T. S., Nath, D., & Mehra, A. (1997). Exploiting synergy for competitive advantage. Long Range Planning, 30(4), 605–611.
Guzman-Arenas, A., & Olivares-Ceja, J. M. (2006). Measuring the understanding between two agents through concept similarity. Expert Systems with Applications, 30(4), 577–591.
Hafeez, K., Zhang, Y. B., & Malak, N. (2002). Determining key capabilities of a firm using analytic hierarchy process. International Journal of Production Economics, 76(1), 39–51.
Haseman, W. D., Nazareth, D. L., & Paul, S. (2005). Implementation of a group decision support system utilizing collective memory. Information Management, 42(4), 591–605.
Javidan, M. (1998). Core competence: What does it mean in practice? Long Range Planning, 31(1), 60–71.
Klapka, J., & Pinos, P. (2002). Decision support system for multicriterial R&D and information systems project selection. European Journal of Operational Research, 140(2), 434–446.
Li, S. X., & Greenwood, R. (2004). The effect of within-industry diversification on firm performance: Synergy creation, multi-market contact and market structuration. Strategic Management Journal, 25(12), 1131–1153.
Li, X., & Ouyang, G. (2006). Nonlinear similarity analysis for epileptic seizures prediction. Nonlinear Analysis, 64(8), 1666–1678.
Lin, C., & Hsieh, P. J. (2004). A fuzzy decision support system for strategic portfolio management. Decision Support Systems, 38(3), 383–398.
Lin, C., & Tseng, S. (2005). Bridging the implementation gaps in the knowledge management system for enhancing corporate performance. Expert Systems with Applications, 29(1), 163–173.
Lin, C., Tan, B., & Hsieh, P. J. (2005). Application of the fuzzy weighted average in strategic portfolio management. Decision Sciences, 36(3), 489–511.
Liu, H. W. (2005). New similarity measures between intuitionistic fuzzy sets and between elements. Mathematical and Computer Modeling, 42(1–2), 61–70.
Markides, C. C., & Williamson, P. J. (1996). Corporate diversification and organizational structure: A resource-based view. Academy of Management Journal, 39(2), 340–367.
Mendoza, J. E., Medaglia, A. L., & Velasco, N. (2009). An evolutionary-based decision support system for vehicle routing: The case of a public utility. Decision Support Systems, 46(3), 730–742.
Mitchell, V. L., & Zmud, R. W. (2006). Endogenous adaptation: The effects of technology position and planning mode on IT-enabled change. Decision Sciences, 37(3), 325–355.
Morone, J. (1993). Winning in high tech markets. Boston: Harvard Business School.
Nanda, A. (1996). Resources, capabilities and competencies. In B. Moingeon & A. Edmondson (Eds.), Organisational learning and competitive advantage. Newbury Park: SAGE Publications Ltd.
Newkirk, H. E., & Lederer, A. L. (2006). The effectiveness of strategic information systems planning under environmental uncertainty. Information Management, 43(4), 481–501.
Osegowitsch, T. (2001). The art and science of synergy: The case of the auto industry. Business Horizons, 44(2), 17–24.
Pierce, L. (2009). Big losses in ecosystem niches: How core firm decisions drive complementary product shakeouts. Strategic Management Journal, 30(3), 323–347.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. NY: Free.
Rho, B. H., Park, K., & Yu, Y. M. (2001). An international comparison of the effect of manufacturing strategy-implementation gap on business performance. International Journal of Production Economics, 70(1), 89–97.
Sabherwal, R., & King, W. (1992). Decision processes for developing strategic application for information systems: A contingency approach. Decision Sciences, 23(4), 917–943.
Sabherwal, R., & Sabherwal, S. (2005). Knowledge management using information technology: Determinants of short-term impact on firm value. Decision Sciences, 36(4), 531–567.
Sahlman, K., & Haapasalo, H. (2009). Elements of strategic management of technology: A conceptual framework of enterprise practice. International Journal of Management and Enterprise Development, 7(3), 319–337.
Sher, P. J., & Lee, V. C. (2004). Information technology as a facilitator for enhancing dynamic capabilities through knowledge management. Information Management, 41(8), 933–945.
Sherman, H. D., & Rupert, T. J. (2006). Do bank mergers have hidden or foregone value? realized and unrealized operating synergies in one bank merger. European Journal of Operational Research, 168(1), 253–268.
Shirani, A. I. (2006). Sampling and pooling of decision-relevant information: Comparing the efficiency of face-to-face and GSS supported groups. Information Management, 43(4), 521–529.
Smith, R., & Sharif, N. (2007). Understanding and acquiring technology assets for global competition. Technovation, 27(11), 643–649.
Sommer, R. A. (2009). Linking strategic planning narratives to process-centric business models. International Journal of Management and Enterprise Development, 7(3), 249–261.
Tanriverdi, H., & Venkatraman, N. (2005). Knowledge relatedness and the performance of multibusiness firms. Strategic Management Journal, 26(2), 97–119.
Teece, D. J., & Pisano, G. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Tian, Q., Ma, J., Liang, J., Kwok, R. C. W., & Liu, O. (2005). An organizational decision support system for effective R&D project selection. Decision Support Systems, 39(3), 403–413.
Turban, E. (1995). Decision support and expert systems. Englewood Cliffs: Prentice-Hall.
Turban, E., Zhou, D., & Ma, J. (2004). A group decision support approach to evaluating journals. Information Management, 42(1), 31–44.
Walsh, S., Boylan, R., Paulson, A., Berg, D., & Morone, J. (1996). Identification scheme for core technical capabilities: Evidence from the semiconductor silicon industry (pp. 231–340). Miami: IAMOT.
Wang, W., & Xin, X. (2005). Distance measure between intuitionistic fuzzy sets. Pattern Recognition Letters, 26(13), 2063–2069.
Yang, I. T. (2008). Utility-based decision support system for schedule optimization. Decision Support Systems, 44(3), 595–605.
Zhuang, Y., & Lederer, A. L. (2006). A resource-based view of electronic commerce. Information Management, 43(2), 251–261.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Lin, C., Hsu, ML., Yen, D.C. et al. Prototype system for pursuing firm’s core capability. Inf Syst Front 15, 497–509 (2013). https://doi.org/10.1007/s10796-011-9341-x
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10796-011-9341-x