Enhancing strategic management using a quantified VRIO: Adding value with the MCDA approach

Abstract

The field of strategic management has been popularized since the 1960s, as an aid for the search of success factors amongst the internal and external surroundings of an organization. Strategic management has observed and created strategies that are considered as pillars in the present way of applying contemporary management operations. Even though strategic management relies on managers’ capability to comprehend the current economic trends, this area has left a variety of questions unanswered, especially regarding the analyses of the combination of quantitative and qualitative decision criteria. This dissertation aims to enhance strategic management by developing a quantified valuable, rare, inimitable and organized (VRIO) framework, with the aid of the multiple criteria decision analysis (MCDA) approach. To accomplish this objective, the VRIO framework is combined with the Choquet integral (CI) and a real-life application is carried out to support strategic management. The dual methodology used in this dissertation offers an innovative process for business improvement. The benefits and limitations are also presented and discussed.