Innovative Approaches to Assessing the Competitiveness of Business Structures Using the Method of Analysis of Hierarchies in Multi-Criteria Ranking

Abstract

The primary objective of this paper is the practical testing of a multi-criteria rating methodology for assessing the competitiveness of business structures. This aims to evaluate critical functional areas of their operations and justify specific managerial decisions to ensure sustainable competitiveness. Maintaining the competitiveness of business structures becomes a primary task in the context of high uncertainty and competition, as well as the presence of crises and politico-economic problems. To achieve the set objective, the Analytic Hierarchy Process (AHP), developed by T. Saaty, was utilized. This practical method allows for multi-criteria comparisons using expert evaluations and calculations of eigenvectors and values, providing systematization and quantitative assessment of criteria and alternatives' priorities. AHP includes procedures for synthesizing multiple judgments and obtaining priorities, allowing for consideration of the 'human factor' in decision-making preparation. The study results demonstrate that the multi-criteria approach to rating the competitiveness of business structures effectively accounts for all areas of their activities and forms an adequate comprehensive measure of competitiveness. Within the study's framework, three business structures with different performance trends were analyzed. The comparative importance of criteria and sub-criteria for competitiveness assessment was determined using the Analytic Hierarchy Process, considering the specifics of the business structures and their business activities. The proposed methodology for multi-criteria rating of business structures' competitiveness allows for a comprehensive assessment of their activities and justification of specific managerial decisions to ensure sustainable competitiveness. The use of the Analytic Hierarchy Process helps to consider the influence of various factors and conditions, contributing to a more objective assessment and strategic decision-making. The application of the proposed methodology is universal and can be effectively used in various sectors of business structures' activities, showcasing its adaptability.