An integrated ISM-DEMATEL model for evaluation of technological innovation capabilities´ impact on the competitiveness of Small & Medium Size Enterprises (SMEs)

One of the most important factors that influence firms to improve competitiveness and achieve competitive advantage is the utilization of technological innovation capabilities (TICs). In this paper, the impacts of the various aspects of these capabilities are evaluated and prioritized. After reviewing the literature, the capabilities have been categorized into six dimensions and different aspects of competitiveness have been identified. Using Interpretive Structural Modelling (ISM), the interaction amongst the factors is extracted. Cause and effect equations of Multiple Attribute Decision-making approach are used to determine the relative rate of the effects of TICs on competitiveness. The results obtained from the DEMATEL algorithm and ISM are analyzed and compared and the rates of influences are evaluated. Finally, combining both the aforementioned methods, an integrated ISM-DEMATEL model is devised through which the factors are prioritized while the importance, intensity and effect of each factor are quantitatively calculated. The findings indicate that “R&D” has the highest influence on competitiveness of SMEs, and “profitability” and “quality” have the highest scores among the affected factors.