Share:


Exploring the best strategy plan for improving the digital convergence by using a hybrid MADM model

    Wan-Chi Jackie Hsu Affiliation
    ; Ming-Hone Tsai Affiliation
    ; Gwo-Hshiung Tzeng Affiliation

Abstract

This study proposes a new hybrid MADM model that can explore the best strategy plan according to the environmental attributes that influence digital convergence, with the additional consideration of societal and individual needs for improving the digital convergence toward satisficing users’ needs. The proposed hybrid MADM model employs the DEMATEL method to construct an influential network relationship map (INRM), and find the influential weights of DANP (DEMATEL-based ANP). Next, a modified VIKOR method is employed to assess the weighting of identified attributes to integrate the performance gap for each criterion into dimensions and the overall. Finally, this paper presents Taiwan as an empirical case to demonstrate the effectiveness of the proposed model in practically improving laws and regulations to plan for digital convergence. The contributions of our proposed model can be summarized as follows: (1) The INRM can be used to assist government bodies in understanding the influence and relationships of digital convergence development; (2) The modified VIKOR can be employed to reduce performance-gap towards achieving the aspiration level; (3) The model can help decision-makers to avoid choosing the optimal inferior alternative for reaching a certain aspiration level through continuous improvement.


First published online 9 January 2017

Keyword : digital convergence development, multiple-attribute decision-making (MADM), DEMATEL (decision-making trial and evaluation laboratory), influential network relation map (INRM), DEMATEL-based analytic network process (DANP), modified VIKOR (VlseKriterijumska Optimizacija I Kompromisno Resenje)

How to Cite
Hsu, W.-C. J., Tsai, M.-H., & Tzeng, G.-H. (2018). Exploring the best strategy plan for improving the digital convergence by using a hybrid MADM model. Technological and Economic Development of Economy, 24(1), 164-198. https://doi.org/10.3846/20294913.2016.1205531
Published in Issue
Jan 17, 2018
Abstract Views
1097
PDF Downloads
747
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Baldwin, T. F.; McVoy, D. S.; Steinfield, C. 1996. Convergence: integrating media, information & communication. Thousand Oaks, CA: Sage Publications.

Chen, F. H.; Hsu, T. S.; Tzeng, G. H. 2011. A balanced scorecard approach to establish a performance evaluation and relationship model for hot spring hotels based on a hybrid MCDM model combining DEMATEL and ANP, International Journal of Hospitality Management 30(4): 908–932. https://doi.org/10.1016/j.ijhm.2011.02.001

Chen, F. H.; Tzeng, G. H. 2015. Probing organization performance using a new hybrid dynamic MCDM method based on the balanced scorecard approach, Journal of Testing and Evaluation 43(4): 1–14. https://doi.org/10.1520/JTE20130181

Chiu, W. Y.; Tzeng, G. H.; Li, H. L. 2013. A new hybrid MCDM model combining DANP with VIKOR to improve e-store business, Knowledge-Based Systems 37: 48–61. https://doi.org/10.1016/j.knosys.2012.06.017

Chiu, W. Y.; Tzeng, G. H.; Li, H. L. 2014. Developing e-store marketing strategies to satisfy customers’ needs using a new hybrid gray relational model, International Journal of Information Technology & Decision Making 13(2): 231–261. https://doi.org/10.1142/S0219622014500357

Curran, C. S. 2013. The anticipation of converging industries. London: Springer-Verlag. https://doi.org/10.1007/978-1-4471-5170-8

Digital Economy Act. 2010. Legislation, United Kingdom.

Dutil, P. A.; Howard, C.; Langford, J.; Roy, J. 2007. Rethinking government-public relationships in a digital world: customers, clients, or citizens?, Journal of Information Technology & Politics 4(1): 77–90. https://doi.org/10.1300/J516v04n01_06

European Commission. 1997. Green Paper on the Convergence of the Telecommunications, media and information technology sectors, and the implications for regulation. Towards an Information Society Approach. COM (97) 623, European Commission, Brussels [online], [cited 3 December 2015]. Available from Internet: http://europa.eu.int/ISPO/convergencegp/97623.html

European Commission. 2013. Media policies. Digital Agenda for Europe, EU.

Executive Yuan. 2010. Digital Convergence Policy Initiative (2010–2015), R.O.C Taiwan.

Executive Yuan. 2012. Digital Convergence Policy Initiative (2010–2015). 2nd ed. R.O.C Taiwan.

Federal Communications Commission (FCC). 2010. Connecting America: the national broadband plan [online], [cited 3 December 2015]. Available from Internet: http://download.broadband.gov/plan/national-broadband-plan.pdf.

Fontela, E.; Gabus, A. 1974. DEMATEL, innovative methods. Structural analysis of the world problematique. Report No. 2, Battelle Geneva Research Institute.

Fransman, M. 2000. Convergence, the internet and multimedia: implications for the evolution of industries and technologies, in E. Bohlin, K. Brodin, A. Lundgren, B. Thorngren. (Eds.). Convergence in communications and beyond. North, Holland Amsterdam: Emerald Group Publishing.

Government office for science. 2014. The internet of things: making the most of the second digital revolution. United Kingdom.

Hsu, C. C.; Liou, J. J. H.; Chuang, Y. C. 2013. Integrating DANP and modified grey relation theory for the selection of an outsourcing provider, Expert Systems with Applications 40(6): 2297–2304. https://doi.org/10.1016/j.eswa.2012.10.040

Hsu, C. H.; Wang, F. K.; Tzeng, G. H. 2012. The best vendor selection for conducting the recycled material based on a hybrid MCDM model combining DANP with VIKOR, Resources, Conservation and Recycling 66: 95–111. https://doi.org/10.1016/j.resconrec.2012.02.009

Hu, S. K.; Lu, M. T.; Tzeng, G. H. 2014. Exploring smartphone improvements based on a hybrid MCDM model, Expert Systems with Applications 41(9): 4401–4413. https://doi.org/10.1016/j.eswa.2013.12.052

Huang, C. Y.; Shyu, J. Z.; Tzeng, G. H. 2007. Reconfiguring the innovation policy portfolios for Taiwan’s SIP mall industry, Technovation 27(12): 744–765. https://doi.org/10.1016/j.technovation.2007.04.002

Huang, J. J.; Tzeng, G. H. 2014. New thinking of multi-objective programming with changeable space – in search of excellence, Technological and Economic Development of Economy 20(2): 254–273. https://doi.org/10.3846/20294913.2013.860931

Kaluza, B.; Blecker, T.; Bischof, C. 1999. Implications of digital convergence on strategic management, in S. B. Dahiya (Eds.). The current state of economic science. Spellbound Publications, 2223–2249.

Kim, D. 2011 New regulatory institution for the convergence of broadcasting and telecommunications: a Korean case, Government Information Quarterly 28(2): 155–163. https://doi.org/10.1016/j.giq.2010.08.004

Kim, S.; Lee, H.; Lee, M. H. 2010. Research in convergence: a literature analysis, Journal of Research and Practice in Information Technology 42(3): 191–205.

Kooiman, J. 1993. Modern governance: new government-society interactions. London: SAGE Publications.

Lin, T. T. C. 2013. Convergence and regulation of multi-screen television: the Singapore experience, Telecommunications Policy 37(8): 673–685. https://doi.org/10.1016/j.telpol.2013.04.011

Liou, J. J. H. 2013. New concepts and trends of MCDM for tomorrow in honor of Professor GwoHshiung Tzeng on the occasion of his 70th birthday, Technological and Economic Development of Economy 19(2): 367–375. https://doi.org/10.3846/20294913.2013.811037

Liou, J. J. H.; Chuang, Y.; Tzeng, G. H. 2014. A fuzzy integral-based model for supplier evaluation and improvement, Information Sciences 266: 199–217. https://doi.org/10.1016/j.ins.2013.09.025

Liou, J. J. H.; Tamošaitienė, J.; Zavadskas, E. K.; Tzeng, G. H. 2015. New hybrid COPRAS-G MADM Model for improving and selecting suppliers in green supply chain management, International Journal of Production Research 54(1): 1–21.

Liou, J. J. H.; Tzeng, G. H. 2012. Comments on “Multiple criteria decision making (MCDM) methods in economics: an overview”, Technological and Economic Development of Economy 18(4): 672–695. https://doi.org/10.3846/20294913.2012.753489

Lips, M. 2010. Rethinking citizen-government relationships in the age of digital identify: insights from research, Information Polity 15: 273–289.

Liu, C. H.; Tzeng, G. H.; Lee, M. H. 2012. Improving tourism policy implementation – the use of hybrid MCDM models, Tourism Management 33(2): 413–426. https://doi.org/10.1016/j.tourman.2011.05.002

Liu, C. H.; Tzeng, G. H.; Lee, M. H. 2013a. Strategies for improving cruise product sales in the travel agency- using hybrid MCDM models, The Service Industry Journal 33(5): 542–563. https://doi.org/10.1080/02642069.2011.614342

Liu, C. H.; Tzeng, G. H.; Lee, M. H.; Lee, P. Y. 2013b. Improving metro–airport connection service for tourism development: using hybrid MCDM models, Tourism Management Perspectives 6: 95–107. https://doi.org/10.1016/j.tmp.2012.09.004

Liu, Y. L. 2013. Convergence in the digital age, Telecommunications Policy 37(8): 611–614. https://doi.org/10.1016/j.telpol.2013.04.012

Lu, M. T.; Lin, S. W.; Tzeng, G. H. 2013. Improving RFID adoption in Taiwan’s healthcare industry based on a DEMATEL technique with a hybrid MCDM model, Decision Support Systems 56: 259–269. https://doi.org/10.1016/j.dss.2013.06.006

Lu, M. T.; Tzeng, G. H.; Cheng, H.; Hsu, C. C. 2015a. Exploring mobile banking services for user behavior in intention adoption: using new hybrid MADM model, Service Business 9(3): 541–565. https://doi.org/10.1007/s11628-014-0239-9

Lu, M. T.; Tzeng, G. H.; Hu, S. K.; 2015b. Evaluating the implementation of business-to-business m-commerce by SMEs based on a new hybrid MADM model, Management Decision 53(2): 290–317. https://doi.org/10.1108/MD-01-2014-0012

Mithas, S.; Fafti, A.; Mitchell, W. 2013. How a firm’s competitive environment and digital strategic posture influence digital business strategy, MIS Quarterly 37(2): 511–536.

National Communications Commission (NCC). (2004). Fundamental Communications Act [online], [cited 3 December 2015]. Available from Internet: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=P0010005

National Communications Commission (NCC). (2015). Introduction of the National Communications Commission. [online], [cited 3 December 2015]. Available from Internet: http://www.ncc.gov.tw/

OECD. 1992. Telecommunications and broadcasting: convergence or collision? Committee on Information Computer Communications Policy, Report No. 29. Organization for Economic Development, Paris.

OECD, 2004. The implications of convergence for regulation of electronic communications. Organization for Economic Development, Paris.

Opricovic, S. 1998. Multicriteria optimization of civil engineering systems, Faculty of Civil Engineering, Belgrade 2(1): 5–21.

Opricovic, S.; Tzeng, G. H. 2004. Compromise solution by MCDM methods: a comparative: analysis of VIKOR and TOPSIS, European Journal of Operational Research 156(2): 445–455. https://doi.org/10.1016/S0377-2217(03)00020-1

Opricovic, S.; Tzeng, G. H. 2002. Multicriteria planning of post – earthquake sustainable reconstruction, Computer-Aided Civil and Infrastructure Engineering 17(3): 211–220. https://doi.org/10.1111/1467-8667.00269

Opricovic, S.; Tzeng, G. H. 2003. Fuzzy multicriteria model for post-earthquake land-use planning, Natural Hazards Review 4(2): 59–64. https://doi.org/10.1061/(ASCE)1527-6988(2003)4:2(59)

Opricovic, S.; Tzeng, G. H. 2007. Extended VIKOR method in comparison with outranking methods, European Journal of Operational Research 178(2): 514–529. https://doi.org/10.1016/j.ejor.2006.01.020

Ou Yang, Y. P.; Shieh, H. M.; Tzeng, G. H. 2013. A VIKOR technique based on DEMATEL and ANP for information security risk control assessment, Information Science 232: 482–500. https://doi.org/10.1016/j.ins.2011.09.012

Ou Yang, Y. P.; Shieh, H. M.; Leu, J. D.; Tzeng, G. H. 2008. A novel hybrid MCDM model combined with DEMATEL and ANP with applications, International Journal of Operations Research 5(3): 160–168.

Peng, K. H.; Tzeng, G. H. 2013. A hybrid dynamic MADM model for problems-improvement in economics and business, Technological and Economic Development of Economy 19(4): 638–660. https://doi.org/10.3846/20294913.2013.837114

Saaty, T. L. 1996. Decision making with dependence and feedback: the analytic network process. Pittsburgh, PA: RWS Publications.

Shen, K. Y.; Yan, M. R.; Tzeng, G. H. 2014. Combining VIKOR-DANP model for glamor stock selection and stock performance improvement, Knowledge-Based Systems 58: 86–97. https://doi.org/10.1016/j.knosys.2013.07.023

Shin, D. H. 2010. Convergence and divergence: policy making about the convergence of technology in Korea, Government Information Quarterly 27(2): 147–160. https://doi.org/10.1016/j.giq.2009.11.001

Tzeng, G. H.; Chiang, C. H.; Li, C. W. 2007. Evaluating intertwined effects in e-learning programs: a novel hybrid MCDM model based on factor analysis and DEMATEL, Expert systems with Applications 32(4): 1028–1044. https://doi.org/10.1016/j.eswa.2006.02.004

Tzeng, G. H.; Huang, C. Y. 2012. Combined DEMATEL technique with hybrid MCDM methods for creating the aspired intelligent global manufacturing & logistics systems, Annals of Operations Research 197(1): 159–190. https://doi.org/10.1007/s10479-010-0829-4

Tzeng, G. H.; Huang, J. J. 2011. Multiple attribute decision making – methods and applications. NW: CRC Press.

Tzeng, G. H.; Huang, J. J. 2013. Fuzzy multiple objective decision making. NW: CRC Press. https://doi.org/10.1201/b15337

Tzeng, G. H.; Huang, K. W.; Lin, C. W.; Yuan, B. J. C. 2014. New idea of multi-objective programming with changeable spaces for improving the unmanned factory planning, in Proceedings of PIC-

MET’14 Conference: Portland International Center for Management of Engineering and Technology; Infrastructure and Service Integration, 27–31 July 2014, Kanazawa, 564–570.

Tzeng, G. H.; Lin, C. W.; Opricovic, S. 2005. Multi-criteria analysis of alternative-fuel buses for public transportation, Energy Policy 33(11): 1373–1383. https://doi.org/10.1016/j.enpol.2003.12.014

Tzeng, G. H.; Teng, M. H.; Chen, J. J.; Opricovic, S. 2002b. Multicriteria selection for a restaurant location in Taipei, International Journal of Hospitality Management 21(2): 171–187. https://doi.org/10.1016/S0278-4319(02)00005-1

Tzeng, G. H.; Tsaur, S. H.; Laiw, Y. D.; Opricovic, S. 2002a. Multicriteria analysis of environmental quality in Taipei: public preferences and improvement strategies, Journal of Environmental Management 65(2): 109–120. https://doi.org/10.1006/jema.2001.0527

Utschig, T. T., 2001. The communication revolution and its effects on 21st century engineering education, Frontiers in Education Conference, 10–13 October 2001, Reno, NV, 3: 19–23.

Vasmatics, G. 2010. The revolution of communication and its effect on our life, Academicus International Scientific Journal 1: 100–108. https://doi.org/10.7336/academicus.2010.01.09

Warfield, J. N. 1976. Societal systems, planning, policy and complexity. New York: John Wiley and Sons.

Yoffie, D. B. 1997. Introduction: CHESS and competing in the age of digital convergence, in D. B. Yoffie (Ed.). Competing in the age of digital convergence. Boston: Harvard Business School Press, 1–35.

Yu, P. L. 1973. A class of solutions for group decision problems, Management Science 19(8): 936–946. https://doi.org/10.1287/mnsc.19.8.936