Article ID: | iaor20083776 |
Country: | United Kingdom |
Volume: | 34 |
Issue: | 12 |
Start Page Number: | 3592 |
End Page Number: | 3608 |
Publication Date: | Dec 2007 |
Journal: | Computers and Operations Research |
Authors: | Hafeez K., Malak N., Zhang Y.B. |
Keywords: | analytic hierarchy process |
This paper provides a structured framework for evaluating the firm assets and competences using a two stage analytic hierarchy process (AHP). One distinctive characteristic of this framework is that relationship between firm competence and intellectual assets is established and a set of six attributes related to uniqueness and collectiveness are identified to help identify the core competence of a company. Using a balance score card type financial and non-financial procedure, these attributes are subsequently employed for isolating the competence and tangible and intangible assets of a UK manufacturing company. Our analysis illustrates that the intellectual assets such as marketing knowledge, design skills, manufacturing skills and customer relationship those usually ignored within the balance sheet of a company have been perceived relatively important than the tangible assets such as space and equipment. We argue that results based on AHP-based quantitative analysis would help a company to make more informed strategic management decision concerning further investment for competences and key assets development, and outsourcing non-core assets and competences.