A Hierarchical Decision Framework For Enterprise-Wide Quality Innovation And Sustainable Competitive Performance Evaluation

Abstract

Evaluation models focus on assessing a single aspect of enterprise-wide quality and innovation, which reduces the ability to make comprehensive and integrated decisions for sustainable competitive performance. This study introduces a Hierarchical Decision Framework by combining both the Analytic Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and in one decision framework that enables the evaluation of organizational quality, innovation capability and sustainability. Using a comprehensive literature review and expert consultation, a hierarchical model of six key criteria and 24 criteria indicators for evaluating performance was created. The results of the AHP showed that the criteria that had the greatest influence were Innovation Capability (0.268), Quality Management (0.231), and Leadership (0.186), and the consistency ratio was 0.041, which is under the acceptable threshold of 0.10. The scores of enterprises performance obtained using TOPSIS ranged between 0.412 and 0.891, with the highest score, 0.891, corresponding to the enterprise that performed best. The proposed framework was also found to be robust with sensitivity analysis, where the stability of ranking was slightly less than 93.5% under ±20% weight variation. The results showed that the integration of quality, innovation, and sustainability into a decision model with a hierarchy of levels constitutes a reliable instrument to benchmark an enterprise, to plan its strategy, and to permanently improve its performance.