Evaluation and Ranking of Organizational Resilience Factors by Using a Two-Step Fuzzy AHP and Fuzzy TOPSIS

Abstract

We presented a novel fuzzy multicriteria decision making approach to evaluate and rank organizational resilience factors with respect to user preference orders. Due to vagueness of the decision data, the precise numerical data are inadequate for real-life business situations. Human judgements can be expressed by linguistic expressions which are modeled by fuzzy sets. The complexity of the considered problem calls for analytic methods rather than intuitive decisions. Two fuzzy multi-criteria methods are proposed for solving the treated problem: Fuzzy Analytic Hierarchical Process (FAHP) is applied to determine the relative importance of business processes and the relative importance of organizational resilience factors under each business process, and an extension of the fuzzy Technique for Order Preference by Similarity to Ideal Solution (FTOPSIS) is applied to rank the organizational resilience factors. With respect to complexity and the type of considered management problem, we introduce a modified fuzzy decision matrix. The proposed algorithm has efficiently been applied in the assessment of organizational resilience factors to small and medium enterprises of the process industry.

What we know and do not know about organizational resilience

“…They proposed to evaluate internal factors (planning strategies, capability and capacity of internal resources, internal situation monitoring and reporting, human factors and quality), external factors (external situation monitoring and reporting and capability and capacity of external resources) and enabling resilience factors (design of the organization, detection potential, emergency response and safety management system). Tadić et al (2014); Macuzić et al (2016) suggested to evaluate resilience using a fuzzy approach. They suggest the following steps: (1) creating an organizational reference model and to identify the factors that contribute to resilience, (2) weighing the importance of these factors and processes using a fuzzy approach, (3) determining linguistic expressions to evaluate these factors, (4) calculating the resilience factors' values using a fuzzy approach and (5) ranking the organizational resilience factors.…”

Modelling and Enhancement of Organizational Resilience Potential in Process Industry SMEs

“…In the literature, papers can be found which assume that the resilience assessment should be done on the level of organizational processes [13,14] with assets that can be influenced by managers in order to keep the measurement consistent over time. In this manner, industrial processes may be assessed from the perspective of the contributing factors of resilience [14]. A lot of events described with insufficient data may have an influence on resilience of critical processes in an organization.…”

“…In this manner, organizational resilience corresponds to the maximum percentage change given in the worst-case level of performance [12] that an organization may withstand. Overall organizational resilience of an SME is based on assessment of verified potential factors of organizational resilience (ORPFs) [13,14] estimated by using fuzzy sets theory. Since it may be assumed that their value is not subject to change over a predefined period of time, ORPFs are analyzed as static variables.…”

“…The rank of ORPFs is determined by a novel fuzzy Technique for Order Preference by Similarity to Ideal Solution (FTOPSIS) [25,26]. The authors have emphasized that the priority of improvement measures which should lead to improvement of the organizational resilience may be based on the obtained rank of ORPFs [14]. The possible improvement procedure is not proposed in the analyzed papers [13,14].…”

“…The authors have emphasized that the priority of improvement measures which should lead to improvement of the organizational resilience may be based on the obtained rank of ORPFs [14]. The possible improvement procedure is not proposed in the analyzed papers [13,14]. In this paper, the assessment of ORPFs, determination of the organizational resilience of SMEs and enhancement of SMEs' organizational resilience are considered.…”