Analyzing Cross-impact Matrices for Managerial Decision-making Problems with the DEMATEL Approach

Shailesh Tripathi, Nadine Bachmann, Manuel Brunner, Herbert Jodlbauer

2022

Abstract

Cross-impact matrices define pairwise direct impacts between variables representing the complexity of various social, economic and technological systems. Business and management-related research primarily utilizes the row and column sums of direct impact matrices to identify critical, influential, dependent, neuter, and inert variables. However, the impact of drivers and outcomes in complex systems is usually difficult to interpret accurately without considering the indirect impact of variables. This paper considers all impacts of direct and indirect impact paths (known as the total impacts) between variables using the decision-making trial and evaluation laboratory (DEMATEL) approach for direct impact matrices in which the rank order remains stable (i.e., a stable equilibrium state exists). Numerical experiments show that the rank order of variables and their role (influence or dependence) can change significantly when considering total impacts between variables compared with when considering direct impacts only. This analysis can be used to support management in strategic planning and decision-making, e.g., in an international business environment: Management should attempt to obtain the total impacts matrix defining all direct and indirect impacts that determine the rank order on which informed decisions are subsequently based. The results presented in this paper indicate that impact paths between variables should be incorporated into the system with an in-depth domain understanding. This enables the realistic capture of impacts and the establishment of a stable state for obtaining an unbiased understanding of the roles of variables.

Paper Citation

in Harvard Style

Tripathi S., Bachmann N., Brunner M. and Jodlbauer H. (2022). Analyzing Cross-impact Matrices for Managerial Decision-making Problems with the DEMATEL Approach. In Proceedings of the 11th International Conference on Data Science, Technology and Applications - Volume 1: DATA, ISBN 978-989-758-583-8, pages 370-382. DOI: 10.5220/0011274600003269

in Bibtex Style

@conference{data22,
author={Shailesh Tripathi and Nadine Bachmann and Manuel Brunner and Herbert Jodlbauer},
title={Analyzing Cross-impact Matrices for Managerial Decision-making Problems with the DEMATEL Approach},
booktitle={Proceedings of the 11th International Conference on Data Science, Technology and Applications - Volume 1: DATA,},
year={2022},
pages={370-382},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011274600003269},
isbn={978-989-758-583-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 11th International Conference on Data Science, Technology and Applications - Volume 1: DATA,
TI - Analyzing Cross-impact Matrices for Managerial Decision-making Problems with the DEMATEL Approach
SN - 978-989-758-583-8
AU - Tripathi S.
AU - Bachmann N.
AU - Brunner M.
AU - Jodlbauer H.
PY - 2022
SP - 370
EP - 382
DO - 10.5220/0011274600003269