Readiness assessment model for institutionalization of SMEs using fuzzy hybrid MCDM techniques

The process of institutionalization encompasses the creation of formal structure, emergence of informal norms, and the development of impersonal/objective procedures, including administrative rituals, ideologies, legalization, and a constant focus on legitimization. Forming the basis of institutionalization, institutional theory traces the ‘emergence of distinctive forms, processes, strategies, outlooks, and competences’ from patterns of organizational interaction and adaptation in response to internal and external environments. In this context, the institutionalization readiness level of organizations is a focus of investigation for developing models to evaluate organizations using precise indicators. In this study, the fuzzy hybrid multi‐criteria decision‐making approach is used in order to measure institutionalization readiness of small and medium sized enterprises (SMEs). Firstly, factors indicating the institutionalization readiness level of SMEs are determined. Then, the weights of the factors are calculated by obtaining expert opinions, along with fuzzy DEMATEL and fuzzy analytic network process (ANP) methods. Several SMEs are evaluated according to these predefined factors, after which the TOPSIS method is implemented for measuring the level of institutionalization of the SMEs.