Article ID: | iaor20081834 |
Country: | Netherlands |
Volume: | 42 |
Issue: | 4 |
Start Page Number: | 2085 |
End Page Number: | 2092 |
Publication Date: | Jan 2007 |
Journal: | Decision Support Systems |
Authors: | Belton Valerie, Montibeller Gilberto, Lima Marcus Vinicius A. |
Keywords: | artificial intelligence: decision support, developing countries |
Factoring companies are a widespread way of providing working capital to small enterprises in Brazil. This type of financial transaction has higher risks when performed in developing countries, due to unreliable financial information on firms, an unstable environment, and particular managerial practices. This paper describes a case study in which a language-based DSS was developed for a Brazilian factoring company to evaluate the perceived risk of buying accounts receivable; and discusses the suitability of different approaches to decision support for this type of decision in Brazil – which may be relevant for similar situations in other developing countries.